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Case Study

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Divestiture of a division of a public company

The Situation

Syntellect was a publicly traded company, based in Phoenix, AZ, that provided hosted service solutions for enterprise customer contact centers. The company had decided that its call center software division did not fit with the company's long-term strategic plan. In addition, the cash generated from a sale of the division would help finance the growth of the other, more strategic areas of the company.

The Response

This industry sector was quite narrow with only about 12 companies in the universe of potential acquirers. We contacted all of these buyers and entered into discussions and negotiations with several of these firms.

The Solution

The result was a successful transaction with Noble Systems based in Atlanta, GA. Noble Systems is a leading solutions provider of turnkey call center automation and customized contact management technology. The acquisition gave Noble immediate access to some new markets and adds to its install base of predictive dialer technology.

In Review

The transaction structure included cash plus an earnout. If the major portion of the earnout portion was realized, Syntellect would receive twice the amount they had hoped to receive for the sale of the division. As a result, the price of this transaction exceeded the seller's expectations.


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