IT Staffing & Solutions
Technology innovation has been a constant. In that, the foundation upon which businesses sit evolves. Therefore, there is a continuing requirement for digital transformation. Companies that are founded on the current technology foundation and that leverage today’s technology in their business models can achieve new levels of efficiency and success. Legacy companies are comparatively very asset heavy and encumbered notwithstanding their leadership advantages.
Many investors focus on the technology itself or companies that leverage technology to create new business models that, in many cases, are designed to disrupt industry.
However, whether you are a software company, a new market entrant or legacy competitor and whether you will eventually be a winner or a loser, you need the IT talent. It is for that reason, that Freidheim Capital has focused on IT staffing and solutions companies as one attractive industry vertical.
Freidheim Capital has deep operating and investing experience in the information technology staffing and solutions industry. Freidheim has served as CEO of a publicly traded $1b+ revenue company and on the boards of public and private IT staffing and solutions companies.
Freidheim Capital delivers maximum value having participated in all aspects of a transaction. These elements include: sourcing proprietary acquisition opportunities, securing strategic and private equity investors, valuation, structuring, financing, negotiating and closing, providing input on governance, board or executive leadership, strategy and operations.
Freidheim Capital has 30 years of investment banking experience. We have executed deals as buyer and seller from the vantage point of a public company CEO, Board member (both private and public companies), private equity investor and retained financial advisor. Understanding the perspectives of all parties involved in a transaction supports delivering on a successful transaction.
Market Opportunity Identification, Platform Acquisition & Consolidation
Freidheim Capital identified an opportunity to consolidate the IT talent staffing and solutions industry. The ongoing digital transformation of corporate America, scarcity of scale providers and highly fragmented nature of the industry were attractive industry dynamics. Multiple arbitrage between smaller and larger companies, low interest rates and attractive debt financing terms made for an attractive financing environment. Multiple ratified operating leverage and strategic opportunities existed to create further value.
In 2019, Freidheim Capital partnered with a private equity firm to execute on the opportunity. The selected firm has extensive resources and a wonderful track record of acquiring founder owned companies to deliver on the promise of their businesses.
ettain group, the platform acquisition, is a leading talent solutions firm that delivers recruitment services and managed services in three practice areas: IT, Healthcare IT, and Digital Creative. ettain group made multiple acquisitions and grew cash flow ten fold. Freidheim Capital was an investor and served on the board as co-Chairman. Freidheim Capital delivered acquisition and business development opportunities for ettain group.
In October 2021, ettain group closed on the sale to Manpower for $925m. The investment created value exceeding $500m for equity investors and an IRR greater than 100%.
IT Staffing & Solutions Transactions
Freidheim Capital has invested in the following companies in the information technology staffing and solutions business services sector. In most, Freidheim has also served as the proprietary source of the transaction, CEO or Board member.
Bradford & Galt
CDI Corp.
Centerline Partners
Edgerock Technologies
ettain group
Genuent
Global Employment Solutions
INT Technologies
Leidos Health
MBO Partners
NTT Data Services