Court Square Inks Sale of CompuCom: UPDATED

Court Square Capital Partners has agreed to sell CompuCom Systems. The buyer is Thomas H. Lee Partners. Financial terms were not announced but  THL is paying about $1.1 billion in cash, according to a person familiar with the matter. Citigroup Global Markets Inc, J.P. Morgan, BMO Capital Markets and Jefferies Finance are providing committed financing. Dallas-based CompuCom is an IT outsourcing company. Court Square acquired the company in 2007 for $504 million. BMO Capital Markets and Jefferies advised THL, while Citigroup provided financial advice to CompuCom/Court Square. UPDATE: Ed Wehle lead the deal team at Citi that included Ethan Zweig and Hugo Doetsch.  Gerrie Sinatra of Dechert along with Ken Young, Adam Rosenthal, Victoria Alff, Allyson Levy, Edward Lemanowicz and Ken Wang provided legal advice to CompuCom/Court Square. Weil, Gotshal & Manges was the attorney for THL.

CompuCom Systems, Inc., the leading IT services and solutions specialist, today announced that it has entered into a definitive agreement under which Thomas H. Lee Partners, L.P. (“THL”), a leading private equity firm, will acquire CompuCom from Court Square Capital Partners, a private equity firm with a legacy of building lasting companies.
CompuCom specializes in full lifecycle infrastructure services from assessment, design, procurement and integration through program deployment and management services of complete enterprise IT infrastructures. CompuCom’s clients are among the most recognized Fortune 100 and 500 businesses, including high growth companies and vertical market leaders. CompuCom, which has more than 11,500 associates worldwide, has had more than 20 years of profitable growth and had $2.3 billion of gross revenue in 2012.
“We at CompuCom are delighted to announce this partnership with THL. This heralds a new era for us with continued focus on value added services to our customers. THL has a great track record in supporting focused growth, customer delight and associate satisfaction within outsourcing and managed IT services companies. Our mission is fully complemented by the resources that a partnership with THL provides,” said Jim Dixon, CompuCom CEO.
Tony Doye, CompuCom Divisional CEO, added, “CompuCom is well positioned for growth, particularly in the mobility, end user and cloud arenas. It is very exciting for us that THL shares and is investing in our strategy.”
“Companies across all industries are increasingly turning to third parties to enhance how they meet their business service needs, particularly with respect to IT. Meanwhile, technology continues to evolve quickly; organizational compliance requirements are becoming an expensive burden due to the rise of mobile devices and cloud computing; and end-user computing services require integration of an increasing number of components. CompuCom has demonstrated that it has the tools and human capital to help companies to navigate these challenges. This investment is also consistent with our long history of investing in and partnering with business processing and managed IT services firms, including Systems Maintenance Services and Fidelity National Information Services,” said Soren Oberg, Managing Director at THL.
“CompuCom has established itself as a clear leader in providing cost-effective IT service management and solutions and is well known for its exemplary customer service. We believe the Company is well-positioned to capture additional market share in its traditional areas of strength as it deepens its expansion into new services towers. We look forward to partnering with the talented CompuCom management team to further grow the business and to continue building value,” said Seth Lawry, Managing Director at THL.
The transaction is expected to close in the second quarter of 2013, subject to regulatory approvals and the satisfaction of other customary closing conditions. Financial terms of the transaction were not disclosed. Citigroup Global Markets Inc., J.P. Morgan, BMO Capital Markets and Jefferies Finance LLC are providing committed financing for the transaction. BMO Capital Markets and Jefferies LLC acted as financial advisors and Weil, Gotshal & Manges LLP acted as legal advisor to THL. Citigroup Global Markets Inc. acted as financial advisor and Dechert LLP acted as legal advisor to CompuCom and Court Square.

About CompuCom Systems, Inc.
CompuCom, the leading IT services and solutions specialist, delivers IT your way. Our clients like working with us because they know that, with CompuCom, it’s all about them. Our unique ITSM strategy blends your data center, network, voice, and end user computing environments in an innovative fashion. This radically simplifies your IT, allowing you to focus on growing your business and serving your customers. We are highly regarded around the world for our balance of industry-leading tools, a pragmatic approach to best practices, and our highly skilled workforce. We are the perfect alternative to address the revolutionary IT transformations facing you today and in the future. More than a trusted advisor, CompuCom is your trusted doer. To learn more, visit
About Thomas H. Lee Partners
Thomas H. Lee Partners, L.P. (“THL”) is one of the world’s oldest and most experienced private equity firms. The firm invests in growth-oriented global businesses, headquartered principally in North America, across three broad sectors: Consumer & Healthcare, Media & Information Services and Business & Financial Services. THL’s team of investment and operating professionals partner with portfolio company management teams to identify and implement business process improvements that accelerate sustainable revenue and profit growth. Since its founding in 1974, THL has raised approximately $20 billion of equity capital and invested in more than 100 businesses with an aggregate purchase price of more than $150 billion. THL strives to build great companies of lasting value and generate superior investment returns. For more information, please visit
About Court Square Capital Partners
Court Square is one of the most experienced teams in the private equity industry. Since 1979, the team has made over 200 investments including several landmark transactions and has developed numerous businesses into leaders in their respective markets. Court Square invests in companies that have compelling growth potential. The firm manages over $5.5 billion in aggregate capital commitments while focusing on the following four sectors: business services, general industrial, healthcare and technology/telecommunications. For more information please visit