decor decor
"Opportunities don't happen. You create them."

-Chris Grosser

Staples to Acquire DEX Imaging

martinwolf Transaction Analysis
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.
martinwolf 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.
previous post Back to Articles next post

09 May 2023

DynamicsCon LIVE Conference Information

martinwolf will be attending the DynamicsCon LIVE conference in Scottsdale May 22-25. Book a confidential one-on-one meeting with Michael Rosholt to learn about market trends, current valuations, and how to prepare for a sale.    DynamicsCon attendees are also eligible for a complementary M&A Readiness Scorecard from martinwolf.   Contact Michael Rosholt at mrosholt@martinwolf.com to...

22 Feb 2023

How Microsoft Channel Partners Can Command High Valuations

In today’s rapidly changing ecosystem, simple organic growth doesn’t give Microsoft Channel Partners long-term competitive advantage.   During the last five years, Microsoft Channel Partners have commanded high valuations due to strong and sustainable business models, as well as a track record of profitability. Most were small mid-market businesses that had to decide to be...

31 Jan 2023

Rising Interest Rates Chill Private Equity Pace

After a year of strength on the private equity front, 2022 is now in the rearview mirror and industry professionals anticipate a downgrade in performance for the coming year.   Despite the fluctuations of the past few years, private equity has withstood the challenges relatively well. However, in certain areas such as exit activity and...