Skyview Capital, a family office in Los Angeles, is working to complete this month a deal that would create a call-center platform employing about 16,000 people worldwide.
Launched by a former Platinum Equity executive, Skyview is acquiring a portfolio of customer-care contracts from Conduent Inc. The portfolio generated about $500 million in revenue in 2017.
Skyview plans to merge the customer-care contracts into its new Continuum Global Solutions platform. The firm plans future growth for Continuum by expanding its customer base, potential operational improvements and technology upgrades and exploring more add-on acquisitions, according to Christopher Aye, head of M&A at Skyview.
Alex Soltani formed Skyview in 2005. Other senior executives at the firm include Aye and Matthew Oehlmann, head of business development.
The deal is right in Skyview’s sweet spot. Skyview looks for opportunities by carving out non-core business units of public companies. Currently, Skyview is focusing on software, telecom and niche manufacturing.
While it operates like a traditional private equity fund, Skyview doesn’t have a blind pool of capital. Rather, it works with two wealthy families on funding deals, Aye said.
“We do have significant captive capital that we draw upon for acquisitions as well as to support ongoing needs of portfolio companies,” he said.
The firm is being cautious in the current market and watching for valuations to cool off a bit, Aye told Buyouts.
“We are really comfortable with telecom, software, and niche manufacturing – these are areas where values are still really high to transact,” he said.
On the exit front, Skyview just agreed to sell the mobile-messaging business units of NewNet Communication Technologies. Skyview acquired NewNet in 2007, betting on text messaging when other investors were hesitating, according to Aye.
Skyview sold the unit to ZephyrTel, an ESW Capital-backed software company. Terms weren’t disclosed.
“People didn’t use text messaging as a daily form of communication in 2007, but we thought this form is going to stick in society, so we decided to make it our flagship product,” Aye said.
The PE firm will continue to hold and operate NewNet’s payment-processing and broadband units and plans to grow these parts of portfolio.
“We will grow the NewNet Secure Transactions business unit through organic growth and potential technology acquisitions,” Aye said.
Action Item: To contact Skyview Capital call 310-273-6000.