martinwolf
Transaction Analysis
HP To Acquire Apogee for $500M
Financial Information*
- Enterprise Value ~$500M
- EV/LTM Revenue N/A
- EV/LTM EBITDA N/A
Transaction Facts
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HP (NYSE: HPQ) announced yesterday its definitive agreement to acquire UK-based managed print services provider Apogee Corporation for
£380M, or ~$500M.
- As part of the agreement, Apogee will operate as an independent subsidiary of HP.
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The deal is expected to close by the end of this calendar year.
Advancing Its Managed Print Services Operations
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Strong Relationships: Apogee not only has relationships with HP but also with major print vendors like Xerox, Konica Minolta, Kyocera and Canon. With 1,000 employees and $300M in annual revenue, Apogee is the largest independent print provider in Europe. Since Apogee has a strong portfolio of high-margin contractual printing services, many of which are long-term contracts for the delivery and sale of hardware and services, HP can be optimistic about revenue gains down the line; the giant can tap into Apogee's current access to SMB and mid-market customers through forthcoming contract renewals.
- Rich Acquisition History: In 2016, private equity firm Equistone Partners invested in Apogee in a transaction valuing the company at ~$230M. Under its PE parent, the company was able to make several acquisitions, including CityDocs, Danwood and EFCO Corporation.
- Market Share Growth: Through this acquisition, HP is expecting to gain more market share in the A3 copier space, currently valued at $55B. The giant also is looking to expand its MPS business to new channels.
- Successful Past: This deal is the next biggest after HP's first major acquisition in the A3 market with its purchase of Samsung's printer business for $1.05B back in 2016. The Samsung acquisition gave its printing unit a strong boost, as HP reported its printing revenue has been steadily growing at 11 percent year-over-year in May.
For more information about this transaction,
click here to read the press release.
*Financial information from the press release and FactSet.
martinwolf was
not the advisor in this transaction.
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Headquartered in Scottsdale, Arizona with offices in the San Francisco Bay Area and New York, 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 155 transactions in over 20 countries and sold seven divisions of Fortune 500 companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com. To learn more about martinwolf, contact Bless Bai at [email protected]. © martinwolf 2018 |
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