The sale of Genstar-backed video software provider Telestream is in the second round, sources familiar with the process told PE Hub.
Lazard is advising the company on its sale process, which is expected to command interest from telecommunication providers and private equity firms, the sources said.
Telestream, based in Nevada City, California, provides digital video software and workflow technology that allow consumers and businesses to transform video content on the desktop and across the enterprise.
The company generates around $60 million in EBITDA, the sources said.
The sale of Telestream could value the business at 12x to 14x EBITDA, putting the company’s valuation between $720 million and $840 million, one of the sources said.
Genstar Capital is exiting the investment in Telestream after a six-year hold.
The San Francisco-based firm acquired Telestream in January 2015 and grew the business through 11 strategic add-on acquisitions.
The most recent add-ons include an acquisition of EcoDigital, a content management software provider; an acquisition of Masstech, Media & Entertainment (M&E) content storage & management provider; and an acquisition of ContentAgent, a workflow automation provider.
In April, Genstar announced the closing of Genstar Capital Partners X with approximately $10.2 billion in total commitments. In addition, Genstar has raised committed overage capacity of $1.5 billion from select limited partners for Genstar’s Opportunities Fund X, which will co-invest in Fund X’s larger transactions.
Genstar Capital, which has approximately $33 billion under management, is focused on investing in targeted segments of the financial services, healthcare, industrials, and software industries.
Genstar and Lazard declined to comment. Telestream did not respond to PE Hub’s request for comment.