Pamlico Capital has put Service Express on the block after a four-year hold, two sources familiar with the deal told Buyouts.
The process kicked off after Labor Day, the sources said. First round bids are due at the end of September, they said.
William Blair is advising the company on the sale.
Service Express, based in Grand Rapids, Michigan, provides third-party maintenance for data center infrastructure focused on server and storage equipment. The company also provides hardware system services, sales and upgrades, operating system support and data center relocations.
Service Express generated nearly $130 million in revenue and approximately $30 million Ebitda, two people said.
With companies in this market segment trading at 15x to 19x Ebitda, Service Express can sell for around $500 million, they said.
Pamlico Capital invested in the company in July 2015 out of its Pamlico Capital Fund III, which closed on $650 million in October 2013.
Since its initial investment, Pamlico completed a few add-ons to the Service Express platform. In January 2016, Service Express acquired Compu-Fix, a third-party maintenance provider serving the Pittsburgh market and surrounding areas. Nearly a year later, Service Express acquired Delta Computer Group, a New-York-based maintenance provider with global customer base.
Charlotte, North Carolina-headquartered Pamlico Capital makes buyout and growth equity investments in lower middle market businesses across business & technology services, communications and healthcare industries.
Pamlico Capital and William Blair did not return Buyouts’ request for comment. Service Express declined to comment.
Action Item: Contact Scott Perper, partner at Pamlico Capital, at (704) 414-7148.