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April 10, 2017
martinwolf  Transaction Analysis
Ciber Files for Bankruptcy
 
Financial Information
  • NA & India Asset Value                       ≃ $50 million
  • EV/LTM Revenue                                N/A
  • EV/LTM EBITDA                                 N/A
Transaction Facts
  • Defaulting on its outstanding $28.5 million loan to Wells Fargo, IT consulting firm Ciber Inc. (NYSE:CBR) announced today that it had, along with its certain U.S. subsidiaries, filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court in the District of Delaware. 
  • Ciber has a commitment for up to $41 million in debtor-in-possession (DIP) financing to help maintain its U.S. operations during the process.
  • Cap Gemini S.A.  ( EPA:CAP),  an IT consulting firm headquartered in Paris,  extended a buyout offer of $50 million for Ciber's operations in North America and India, which generated $275 million in revenuePending more competitive bids, Ciber is poised to take the offer from its stalking horse purchaser. 
  • The New York Stock Exchange announced today that it suspended trading of Ciber's stock and is in the process of delisting the stock.
Integration on the Horizon
  • Piece by Piece: Ciber sold off its European business to various buyers throughout the past two years. It sold off its Dutch and Norwegian units to management consulting company Manpower Group in August and sold its Swedish subsidiary to service provider Bouvet in September. It also a greed to sell its German and Danish subsidiaries, and the majority of its French operations, to IT services firm Allgeier for $8.8 million in February, in the same month it agreed to sell its Spanish business to Manpower. In March, it announced an agreement to sell its Infor Practice to software company Infor. 
  • Global Ambitions: Capgemini seeks to gain a stronger foothold in the North American market, where 30% of its total revenue now comes from. As its strategic acquirement in July 2015 of $1.3 billion solution provider iGate contributed to its North American footprint, Capgemini is pursuing strategic opportunities that could help expand its client reach.
  • The Right Fit: Ciber had other options it was exploring, but ultimately decided that filing for bankruptcy and entering into an agreement with Capgemini was the best course of action. Earlier in March, solution provider Ameri100, which owns 5.5 percent of Ciber, made an offer to acquire the company. But now it seems that only a higher bid offer could take Ciber into a different direction. Should Capgemini win the bidding process as expected, the transaction should close by the end of the second quarter this year.
For more information,  click here to read the press release.

martinwolf was not the advisor in this transaction.

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With offices in New York and the San Francisco Bay Area, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 150 transactions in over 20 countries and sold seven divisions of Fortune 500 companies. 

 

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