Business
A leading provider of integrated customer experience technology solutions that offers a full suite of services ranging from strategic consulting to technical deployment and integration services with deep capabilities in solutions around contact center, portal, CRM, and unified communications among others.
Transaction
LaSalle focuses on identifying and acquiring unique, tech-enabled service providers, and Avtex’s strategic position within the customer experience (“CX”) technology market made it an ideal platform acquisition target. In June 2014, LaSalle Capital purchased the company from Marquette Companies, a division of the Pohlad Companies, and partnered with its CEO, George Demou, to lead the company in its next stage of growth.
Opportunity
We saw an opportunity to leverage the company’s existing partnerships with Microsoft and Interactive Intelligence to build out a full suite of integrated, tech-enabled CX products and services nationwide. With its proprietary software solutions, defensible market position, strong management team, and unique recurring revenue mix, we believed we could scale this company to be the nation’s leading integrated CX solutions provider.
Growth Strategy
Our growth plan included making strategic investments into the company’s sales and marketing efforts, as well as leveraging the company’s technology partnerships to build out a national footprint and expand its proprietary service and product offering, with a focus on growing recurring maintenance and subscription revenue. We also supported the management team in the acquisitions of numerous highly accretive add-ons that enabled the company to gain market share, expand into key geographies, enter key product and service verticals, and improve the overall margin profile of the business. As a result of these growth initiatives, the top line grew rapidly and EBITDA margins significantly expanded from high single digits to ~13% in 2017.
Through these efforts, the company doubled EBITDA in just over three years and successfully transformed from a value-added reseller to a comprehensive, tech-enabled CX service provider with a highly regarded brand and entrenched technology partnerships. The Company was sold to a larger PE fund in February 2018.
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Deal Snapshot
National footprint and recurring revenue model achieved through organic and acquisitive growth
Key partner using Microsoft and Interactive Intelligence technology
Doubled EBITDA
Acquired 2014, Exited February 2018
2.5x MOIC
www.avtex.com
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