Transactions
January 2005
OneNeck Received Growth Capital from WestView Capital Partners
Company Description
OneNeck IT Services Corporation is the leading ERP outsourcing and managed services provider to middle-market companies. The Company hosts and manages most major ERP applications, including SSA Baan, Oracle/PeopleSoft/JD Edwards and Microsoft Business Solutions, and manages over 70 additional applications for its customers. OneNeck offers a wide range of outsourcing and business process support services such as infrastructure, application, database and network management, data center management, 24 x 7 customer support, disaster recovery, and desktop support. The majority of OneNeck’s customers outsource all, or the vast majority, of their IT resources making OneNeck a highly valued strategic partner.
Objectives
OneNeck wanted to find a private equity partner that could structure a deal to satisfy a range of divergent requirements from existing management and outside shareholders while also serving as an active financial partner to help finance potential future acquisitions.
Challenges facing the Company included:
- To close a financing with a minority investor on terms that would allow senior management to take substantial capital off of the table while maintaining a controlling carried interest in the business.
- Satisfying the transaction requirements of two exiting executive shareholders, six executive shareholders that would stay with the business, and the interests of several outside investors including one major strategic investor/customer.
- Educating investors relative to why OneNeck’s unique approach to providing managed services to the middle-market has succeeded, where dozens of other companies have failed in recent years. There was also a need to educate investors relative to how OneNeck has mitigated the risk of substantial turmoil among ERP companies given recent and major consolidation in the sector.
Results
TripleTree orchestrated a process with five leading private equity firms that focus in the IT services and outsourcing sector. All five firms made very attractive proposals within 45 days of starting the process. In the end, TripleTree successfully negotiated a minority investment with WestView Capital at an attractive valuation and on favorable terms that satisfied the diverse requirements of OneNeck’s shareholders.
LEAD INVESTMENT BANKERS
David Brownlie
Company Description
OneNeck IT Services Corporation is the leading ERP outsourcing and managed services provider to middle-market companies. The Company hosts and manages most major ERP applications, including SSA Baan, Oracle/PeopleSoft/JD Edwards and Microsoft Business Solutions, and manages over 70 additional applications for its customers. OneNeck offers a wide range of outsourcing and business process support services such as infrastructure, application, database and network management, data center management, 24 x 7 customer support, disaster recovery, and desktop support. The majority of OneNeck’s customers outsource all, or the vast majority, of their IT resources making OneNeck a highly valued strategic partner.
Objectives
OneNeck wanted to find a private equity partner that could structure a deal to satisfy a range of divergent requirements from existing management and outside shareholders while also serving as an active financial partner to help finance potential future acquisitions.
Challenges facing the Company included:
- To close a financing with a minority investor on terms that would allow senior management to take substantial capital off of the table while maintaining a controlling carried interest in the business.
- Satisfying the transaction requirements of two exiting executive shareholders, six executive shareholders that would stay with the business, and the interests of several outside investors including one major strategic investor/customer.
- Educating investors relative to why OneNeck’s unique approach to providing managed services to the middle-market has succeeded, where dozens of other companies have failed in recent years. There was also a need to educate investors relative to how OneNeck has mitigated the risk of substantial turmoil among ERP companies given recent and major consolidation in the sector.
Results
TripleTree orchestrated a process with five leading private equity firms that focus in the IT services and outsourcing sector. All five firms made very attractive proposals within 45 days of starting the process. In the end, TripleTree successfully negotiated a minority investment with WestView Capital at an attractive valuation and on favorable terms that satisfied the diverse requirements of OneNeck’s shareholders.
LEAD INVESTMENT BANKERS
David Brownlie
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