NEW YORK, Investcorp, a global provider and manager of alternative investment products, announced today that it has acquired Veritext Holding Company, a leading national provider of deposition and litigation support services to law firms, Fortune 500 corporations, and regulatory agencies in the United States. The terms of the transaction were not disclosed. Veritext was acquired from an investor group led by The Riverside Company and members of the management team that bought the company in August 2005. Veritext has its headquarters in New Jersey and operates within the stable and growing legal services industry through its 30 locations across six core geographic regions in the largest legal markets in the United States. The company provides technology and services that capture testimony during a deposition which is a critical part of the discovery phase of most civil litigation cases in the United States.
“Over the past several years, Veritext’s management team, led by CEO Michael Sandler and COO Nancy Josephs, has built a market leading company by leveraging its proprietary technology to offer a variety of highly differentiated deposition services,” said Chris McCollum, a Managing Director in Investcorp’s private equity business. “We believe that Veritext has multiple ways to grow. It has a leading position in the growing deposition services market, the capability to generate strong free cash flow and the opportunity to complete further add-on acquisitions. “We believe Veritext offers an appropriate investment risk/return balance. Over the past 18 months we’ve evaluated many new investments and ended up passing on companies we liked where the opportunity would indicate an ultimate lower return profile than we were willing to accept.” “Investcorp’s deep operational resources and financial support give us the platform to offer new services, expand our sales force and continue to make strategic add-on acquisitions,” said Nancy Josephs, Veritext’s co-founder and Chief Operating Officer.
Madison Capital Funding was the Sole Lead Arranger and Administrative Agent of the senior debt financing. The mezzanine financing was provided by Oaktree Capital Management, L.P and PennantPark Investment Corporation.
Investcorp was advised by Marks Baughan & Co (M&A), Wyatt Partners (industry), PriceWaterhouseCoopers (financial and accounting), and Gibson Dunn & Crutcher (legal). Harris Williams & Co. acted as sellside advisor for The Riverside Company.
For more information on this transaction, please contact:
Nick Baughan
Managing Member
610.616.3294
nbaughan@marbau.com
Christopher Rose
Associate
610.616.3298
crose@marbau.com
About Veritext
Veritext was founded in 1997 with the goal of providing superior services to the legal industry. With over a decade of continued industry excellence, Veritext is the established leader in providing technology-driven deposition and litigation support services to law firms and corporations around the globe. More information can be found at www.veritext.com.
About Investcorp
Investcorp is a leading provider and manager of alternative investment products. It has offices in New York, London and Bahrain and is publicly traded on the London Stock Exchange (IVC) and Bahrain Stock Exchange (INVCORP). Investcorp has six lines of business: private equity, hedge funds, real estate, technology investment, Gulf growth capital and MENA Mezzanine. Founded in 1982, Investcorp has grown to become one of the largest and most diverse alternative investment managers in terms of both product offerings and geography. Further information is available at www.investcorp.com.
About Marks Baughan & Co.
Marks Baughan & Co. provides investment banking services to growth companies in the Financial Technology and Information Management sectors. Our narrow focus and deep expertise and relationships in these two verticals provide our clients with top-quality results driven by an efficient process. Started in 2004 by two former senior members of the Credit Suisse First Boston Technology Group, Marks Baughan & Co. has established itself as one of the most successful of the new boutique investment banks by combining bulge-bracket expertise with boutique service. Our clients range from public companies with multi-billion dollar market caps to private companies with $10 million in revenues. We deliver results for clients: advising on sales of entire companies and divisions, acquisitions, private placements of equity and debt securities, or strategic advisory services for CEOs and CFOs on public offerings, M&A plans, or investor positioning.