decor decor
"Understanding is a two-way street."

-Eleanor Roosevelt

HP to Acquire Apogee for $500M

martinwolf Transaction Analysis
Financial Information*
  • Enterprise Value                                        ~$500M
  • EV/LTM Revenue                                        N/A
  • EV/LTM EBITDA                                          N/A
Transaction Facts
  • 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.
  • The deal is expected to close by the end of this calendar year.
Advancing Its Managed Print Services Operations
  • 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.
previous post Back to Articles next post

22 Apr 2025

HOIST has received a Growth Investment from WestView Capital Partners

Financial Information Financial information was not disclosed Transaction Details Hoist Global Tech Solutions, a leading global systems integrator and services provider focused on IFS’s suite of enterprise software, announced that it received a growth investment from WestView Capital Partners, a Boston-based growth equity firm focused exclusively on partnering with middle market growth companies. martinwolf Analysis Sole...

13 Jan 2025

Martinwolf Celebrates 28 Years

View a pdf of this letter here.    Dear Valued Clients and Friends, As martinwolf celebrates 28 years of helping clients navigate the complexities of middle market IT M&A, I want to express my heartfelt gratitude for your trust and partnership. This milestone reflects the dedication, expertise, and collaboration of our entire team —and the...

24 Apr 2024

Celestica (NYSE: CLS) to Acquire NCS Global from Heritage Holding

Financial Information Enterprise Value: $36M (and a possible earnout payment should certain post-closing financial conditions be met) Transaction Details Celestica has entered into a definitive agreement to acquire NCS Global, a US-based IT infrastructure and asset management business. The transaction is expected to close in May 2023 or earlier, subject to satisfaction of customary closing...