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"Don't Panic. Pivot."

-Cheryl Amyx

September 09,2020

Computacenter plc to Purchase Pivot Technology Solutions, Inc.

martinwolf Transaction Analysis
 
Computacenter plc to Purchase Pivot Technology Solutions, Inc.
*Financial Information ($USD)
  • Enterprise Value:    $237.8 Million
  • EV/REV:                 0.21x
  • EV/EBITDA:           10.3x
Transaction Facts
  • UK-headquartered solution provider Computacenter plc announced today that it entered into an agreement to acquire Canadian full-service IT services provider Pivot Technology Solutions.
  • The deal, which prices Pivot at C$2.60 cash per common share, represents a 40.5% premium to Pivot’s closing share price on Sept. 8, 2020 (the last closing day before the transaction).
  • The price per share also represents a 36.0% premium to Pivot’s 20-day volume weighted average share price.
martinwolf Analysis
  • Reflecting a Challenging Time: Pivot recently announced second quarter 2020 results reflecting impacts of “economic uncertainty” where overall revenue was C$332M for the quarter compared with C$460M last year, though gross margin increased to 15.1% versus 13.1% the previous year
  • Driving Toward Success: Computacenter also announced interim results for the first half of 2020, with overall revenue slightly above the same period last year but a significant rise in pretax profit, which grew 39% to GBP 74.6M driven by a surge of demand prompted by remote work from COVID-19
  • Building Bigger and Stronger: Computacenter today is one of the largest solution providers in the world and one of the fasted growers in the last three years, due to a combination of strong organic growth and smart acquisitions such as this one and that of San Francisco-based FusionStorm (we advised Computacenter).
  • Smart Leadership: Computacenter CEO Mike Norris, who has been chief executive for more than 20 years, is widely considered a leader in integrating companies and eliminating redundancies.
For more information about this transaction, click here to read the press release.
*Financial information from Factset
martinwolf was not the advisor in this transaction.
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