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February 11, 2019
martinwolf  Transaction Analysis
Staples To Acquire DEX Imaging

Financial Information
  • Not Disclosed
Transaction Facts
  • Leading office supply and solutions provider Staples announced today that it acquired Tampa-based office technology provider DEX Imaging.
  • Transaction details were not disclosed, but DEX is reported to have annual revenues of approximately $250 million (compared with Staples' $15+ billion). The company specializes in document imaging technology.
  • DEX President and CEO Dan Doyle, Jr., Chairman Dan Doyle, Sr., as well as the existing executive team will continue to lead the business.
martin wolf  Analysis
  • Casting Nets Wide and Small: Backed by private equity firm Sycamore Partners, Staples also recently announced the acquisition of office products distributor Essendant Inc., a $1 billion deal. That deal was expected to be completed in the fourth quarter, but it was delayed for reasons including needing governmental approval during the shutdown.
  • Singling Out Services: While Essendant brings Staples enhanced distribution capabilities, DEX and its print management services offer attractive, tightly focused services capabilities to complement its hardware specialization.
  • Focusing on What Works: Even before its acquisition by Sycamore Partners, Staples has historically used M&A to focus its business on its core offerings. In 2014 it sold its MSP division Thrive Networks to telecom provider MetTel as pressure in the MSP space mounted--martinwolf advised Staples on this sale.
  • Looking Ahead: The Essendant transaction and the DEX acquisition illustrate two paths forward for large companies in stagnant industries--going big, or going niche. Having the private backing to do both enables a two-pronged approach--and ensures Stables is able to both capture broader market share and become the go-to provider of specialized services.
For more information about this transaction,  click here to read the press release.

martinwolf was not the advisor in this transaction.

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Headquartered in Scottsdale, Arizona with an office in 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 160 transactions in over 20 countries and sold eight divisions of Fortune 500 companies. 

 

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