Thomas H. Lee-Backed Systems Maintenance Services Taps Investment Bank for Potential Sale

Thomas H. Lee Partners has tapped William Blair & Co. to explore a potential sale of Systems Maintenance Services.
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Thomas H. Lee Partners LP has tapped William Blair & Co. LLC to explore a potential sale of Systems Maintenance Services Inc., and the IT support services provider could fetch up to $900 million in a sale, people familiar with the matter told The Deal's Jaewon Kang. Charlotte, N.C.-based SMS has around $50 million to $60 million in Ebitda and more than $250 million in revenue, said three sources. The company is likely to fetch about 12 times to 15 times its Ebitda, the sources added. The valuation for the target then would range from approximately $600 million on the lower end to about $900 million on the higher. SMS is already receiving healthy levels of inbound interest and has yet to set a deadline for the first round of bids, one of the sources said, adding that the target would be particularly attractive to financial sponsors. A second source said the IT services company began reaching out to the PE community in the beginning of March. Sources added that the auction is expected to be robust given the scale and international footprint of the SMS and that there won't be a shortage of financial sponsors participating in the process.