Investment Summary

JMI Equity, Concert Capital Partners and ABS Capital Partners Exits HCL Expense Management Services

On August 25, 2008, HCL Technologies invested in business services company HCL Expense Management Services from JMI Equity, Concert Capital Partners and ABS Capital Partners

Investment Highlights
  • This is HCL Technologies’ 1st transaction in the Business Services sector.
  • This is HCL Technologies’ 4th transaction in the United States.
  • This is HCL Technologies’ 1st transaction in New Jersey.
Investment Fate
  • HCL Expense Management Services was divested to a consortium of strategic buyers in 2011.

Investment Summary

Date 2008-08-25
Target HCL Expense Management Services
Sector Business Services
Investor(s) HCL Technologies
Sellers(s) JMI Equity
Concert Capital Partners
ABS Capital Partners
Deal Type Add-on Acquisition

Target

HCL Expense Management Services

Rutherford, New Jersey, United States
HCL Expense Management Services, Inc. is a provider of telecom expense management solutions that manage more than $7 billion of telecommunications expenses and offer a full suite of solutions to manage voice, data, wireless and equipment expense to both enterprises and carriers.

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Investor(S) 1

Investor

HCL Technologies

Noida, India

Category Company
Founded 1976
Sector Information Technology
Employees222,270
Revenue 1.17T INR (2025)
DESCRIPTION

HCL Technologies is an IT services company. The Company’s services portfolio includes application development and maintenance, package implementation services, engineering and R&D services, infrastructure management services and business process outsourcing services. It has a large active client base across banking, financial services and insurance, manufacturing, telecom, retail, media and healthcare verticals. HCL Technologies was founded in 1976 and is based in Noida, Uttar Pradesh.


DEAL STATS #
Overall 4 of 23
Sector: Business Services M&A 1 of 5
Type: Add-on Acquisition M&A Deals 4 of 18
State: New Jersey M&A 1 of 1
Country: United States M&A 4 of 11
Year: 2008 M&A 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-02-20 CapitalStream

Seattle, Washington, United States

CapitalStream, Inc. provides automates commercial finance processes for banks, finance companies, and manufacturers by streamlining manual processes for leases, loans, lines of credit, credit cards and other finance products.

Buy $40M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-12-15 Axon Group

Egham, United Kingdom

Axon provides consultancy services to multinational organizations that have chosen SAP as their strategic enterprise platform and has about 2,000 employees.

Buy £441M

Seller(S) 3

SELLER

JMI Equity

La Jolla, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 7.5B USD
Size Mega
Type Sector Focused
DESCRIPTION

JMI Equity is a private equity firm focused on investments in software, internet, business service, and healthcare IT. Targeted businesses typically help automate and optimize business and information technology processes. The Firm will consider investments at all stages of development, including early-stage companies, self-funded businesses requiring growth capital, and later stage businesses in need of buyout or recapitalization funding. JMI looks to commit at least $25 million per transaction. JMI Equity was formed in 1992 and maintains offices in San Diego and Baltimore.


DEAL STATS #
Overall 34 of 107
Sector: Business Services M&A 4 of 8
Type: Add-on Acquisition M&A Deals 25 of 68
State: New Jersey M&A 3 of 4
Country: United States M&A 32 of 95
Year: 2008 M&A 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-07-29 Capsule Technologies

Andover, Massachusetts, United States

Capsule Technologies, Inc. is a provider of medical device connectivity solutions for hospitals. Capsule integrates with clinical information systems to capture more data, reduce manual efforts and cost, and improve patient care. Capsule Technologies, Inc. was founded in 1997 and is based in Andover, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-09-12 NetPro Computing

Phoenix, Arizona, United States

NetPro Computing, Inc. is a provider of infrastructure optimization software products.

Sell $79M
SELLER

Concert Capital Partners

Newport Beach, California, United States

Category Private Equity Firm
PE ASSETS 250M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Concert Capital Partners is a private equity firm that invests in and acquires profitable businesses experiencing rapid growth. Target sectors include consumer products and services, business services, financial services and healthcare. Prospective companies typically generate sales of $10 to $100 million and cash flow of $3 to $15 million. The Firm's investment size is $10 to $40 million. Concert Capital Partners is based in California, with offices in Newport Beach and Kentfield.


DEAL STATS #
Overall 2 of 2
Sector: Business Services M&A 2 of 2
Type: Add-on Acquisition M&A Deals 2 of 2
State: New Jersey M&A 1 of 1
Country: United States M&A 2 of 2
Year: 2008 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-24 Print

Bellevue, Washington, United States

Print, Inc. a growing component of the print management market that provides bundled offerings of printer supplies, service and equipment to manage document production.

Sell $47M
SELLER

ABS Capital Partners

Hunt Valley, Maryland, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1990
PE ASSETS 2.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

ABS Capital Partners is a private equity firm that invests in later-stage growth companies in the healthcare, technology, business services, media and communications sectors. ABS provides capital to help fund growth, provide shareholder liquidity, pursue acquisitions, or to effect a management buyout. The Firm prefers US based business and will consider both majority and minority positions. ABS looks to commit $10 to $25 million per transaction. ABS Capital was formed in 1990 and has offices in Baltimore, Maryland; Waltham, Massachusetts; and San Francisco, California.


DEAL STATS #
Overall 35 of 72
Sector: Business Services M&A 6 of 9
Type: Add-on Acquisition M&A Deals 13 of 35
State: New Jersey M&A 2 of 3
Country: United States M&A 35 of 71
Year: 2008 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-04-15 Avalere Health

Washington, District of Columbia, United States

Avalere Health is a healthcare consulting and advisory firm. Avalere partners with leading life sciences companies, health plans, providers, and investors to bring innovative, data-driven solutions to complex healthcare challenges. Avalere Health was founded in 2000 and is based in Washington, District of Columbia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-10-01 Brown Advisory Holdings

Baltimore, Maryland, United States

Brown Advisory is a full-service investment and advisory firm based in Baltimore, with principal offices in Washington, D.C., and London. The firm has approximately $15 billion in client assets, including separate accounts, mutual funds and brokerage accounts. About one-third of assets represent institutional clients (endowments, foundations, pension plans, etc.) and two-thirds are comprised of high net worth individuals and families. The large majority of high net worth clients are CEOs, business owners and successful executives and other professionals who have built wealth through their own efforts. Accordingly, the firm has designed its investment and strategic advisory services to meet the needs of clients with complex financial circumstances.

Buy -