Virtual Clarity acquired by DXC
Silverpeak ran a very competitive process with strategic buyers resulting in a sale to DXC at an outlier valuation
About our client
IT-as-a-Service (ITaaS) transformation advisory services provider, solving large scale IT modernization and application migration challenges for clients in the world’s most demanding, mission-critical environments.
The company is comprised of a blend of enterprise IT insiders and hands-on experts with deep knowledge of modern tools, techniques and key industries – including Financial Services, Health Care, Manufacturing, and Telecommunications.
Why they chose us
The shareholders of Virtual Clarity engaged Silverpeak due to its relationships with strategic buyers in the IT services market and the quality of advice they received from Silverpeak on previous transactions.
The deal follows DXC’s strategic investment in Virtual Clarity in 2017 on which Silverpeak was also lead adviser.
How we added value
Silverpeak worked with the Virtual Clarity board as adviser on their journey to a strategic realisation, approaching both global strategic buyers and PE growth investors.
Having secured multiple Tier 1 offers, we managed the process to a tight completion timetable, resulting in a strategic valuation of c. $150m EV (implied 3x EV/revenue and >25x EV/EBITDA).
The successful outcome
A very competitive process with strategic buyers, including Cognizant and McKinsey, resulting in a sale to DXC at an outlier valuation.
Transaction Summary
Client
Virtual Clarity
Deal Type
Exit
Counterparty
Sector
Digital services
Amount
Undisclosed
Countries
UK / US
Silverpeak team
This is my fourth transaction with Paddy and his team, starting 20 years ago. He has always outperformed but this time Paddy and the team absolutely nailed it. From first offer to completion in 50 days, and from LOI in only 19 business days, was always going to be a monumental task but they pulled it off masterfully with calming humour, great expertise and advice and nerves of steel. Bravo!