GenNx360 Capital Partners has completed the sale of its portfolio company, ITsavvy, to publicly traded Xerox Holdings for $400 million. The deal includes $180 million in cash at closing and $220 million in secured promissory notes.
ITsavvy provides IT services and products, including software, cloud services, managed services, and hardware such as servers, networking products, and workstations. Notably, 99% of the company’s in-stock IT products ship the same day. ITsavvy serves over 4,500 small to medium-sized businesses, government agencies, educational institutions, and large enterprises.
GenNx360 acquired ITsavvy in August 2022 through its third fund. ITsavvy completed several add-on acquisitions during its ownership, including enfoPoint Solutions, a Tennessee-based provider of design and build network infrastructure services in May 2021. In January 2022, ITsavvy acquired the K-12 Computing division of Technology Resource Advisors, a Wisconsin-based provider of end-user devices (Chromebooks) and related services for K-12 schools. Most recently, in February 2023, ITsavvy acquired INOC (Independent Network Operations Consortium), an Illinois-based provider of network operations support services and consulting.
In addition to acquisitions, GenNx360 supported ITsavvy’s launch and commercialization of an AI and intelligent automation strategy. Currently led by CEO Munu Gandhi, ITsavvy employs over 500 people. According to Xerox, ITsavvy’s trailing twelve-month (TTM) revenue through August 2024 exceeded $400 million.
“The completion of this transaction marks a significant milestone for ITsavvy and for GenNx360,” said Ron Blaylock, founder and managing partner at GenNx360. “Over the past two years, ITsavvy has undergone exceptional growth and transformation under the leadership of Munu Gandhi and his team. Their dedication and collaboration with our firm have been critical to the company’s success. We are proud of ITsavvy’s achievements and confident it will continue to thrive as part of Xerox.”
“We appreciate GenNx360’s support and strategic insights over the past two years. They have been an outstanding partner to work with to enhance and evolve our platform,” said Mr. Gandhi. “We are excited to join forces with a longstanding company in Xerox, one of the great global brands, and we look forward to supporting their next stage of growth.”
“The success of our investment in ITsavvy is a testament to the growth achieved during our partnership with management over the past two years,” added Mr. Blaylock, who is also the board chairman of ITsavvy. “We are pleased with the company’s transformation under our ownership and wish Munu and team all the best going forward.”
GenNx360 invests $25 million to $100 million in North America-based companies with revenues between $50 million and $500 million and EBITDA of $5 million to $35 million. Sectors of interest include business-to-business services and manufacturing. Since its founding in 2006, the New York City-based firm has acquired 28 platforms and 75 add-ons.
“It has been a privilege to work with Munu and the ITsavvy team over the past two years. We are incredibly proud of the company’s growth and look forward to following their success in the future,” said Peter White, a principal at GenNx360 and a member of ITsavvy’s board.
Xerox Holdings (NASDAQ: XRX), led by CEO Steve Bandrowczak, provides products and services in document management and digital printing, including multifunction printers, copiers, and scanners, as well as software for document automation, cloud-based content management, and IT services. Xerox’s clients range from small businesses to large enterprises, educational institutions, government entities, and healthcare organizations.
Headquartered in Norwalk, Connecticut, Xerox was founded in 1906 as The Haloid Photographic Company. It introduced the Xerox 914, the first plain-paper photocopier, in 1959. The company renamed itself Haloid Xerox in 1958 and became Xerox in 1961.
© 2024 Private Equity Professional | November 26, 2024
