IQNavigator Inc. remains an attractive takeover candidate in the vendor management system universe, but the private equity-backed company is on the M&A offensive following the recent sale of its managed services provider arm.
"The whole company [IQNavigator] gets constant interest all the time, but it's focused on being a buyer right now," said Phil Colaco, managing director at Deloitte Corporate Finance LLC, which advised IQNavigator on the sale of its MSP arm to Warren, Mich.-based MSX International Inc. for an undisclosed price on Aug. 4.
Centennial, Colo.-based IQNavigator, a workforce management provider that is owned by Chicago PE firm GTCR Golder Rauner LLC, hired a Deloitte team that included Colaco, James Miller, Will Cimino and Jay Stafford several months ago specifically to shop the MSP division after the company deemed it non-core. (IQNavigator is predominately a software and technology provider, whereas the MSP business is a service-oriented).
In the aftermath of SAP AG's (SAP) March 26 acquisition of industry leader Fieldglass Inc., observers believed more suitors would surface in the space, especially when it came to IQNavigator, which represents the second-largest cloud-based VMS player that manages temporary labor after Fieldglass.
The third-largest is Jacksonville, Fla.-based Beeline, a unit of Swiss human resources and recruitment company Adecco Group. After that, the VMS space is occupied by significantly smaller entities.
Colaco said the MSP sale process was among the most competitive he had ever run, noting that primarily strategics, along with a few PE groups, were in the mix.