Client Profile:
  • A PE firm acquires a global technology leader to create a broad portfolio group of highly configurable solutions
  • Carve-out from previous parent company
  • Sales: $200M
  • 650 Employees
  • International Sales
  • Manufacturing & Industrial

When a Private Equity (PE) Firm set out to acquire (carve-out) a fully integrated global subsidiary, they faced the intricate task of untangling myriad technologies, contracts, and processes from a sprawling multi-divisional manufacturing company. Yet with any complex endeavor, having the right partner makes all the difference.

Enter Fortium: The IT Separation Maestro

Choosing to collaborate with Fortium was a game-changer for the PE firm. Right from the initial stages, even before the deal was sealed, Fortium took the reins of all IT Separation activities. Their involvement ensured that the separation was not only smooth but also set the stage for future successes.

The Challenge of a Transition Services Agreement (TSA)

One of the primary challenges faced during the acquisition was managing the services that remained intertwined even after the acquisition's effective date. To address this, a robust TSA was necessary. It wasn't just about drafting a TSA; it was about crafting one that was aggressive yet realistic, focusing only on essential services. Furthermore, top-tier executive technology leadership was pivotal in completing all IT separation tasks until the final Transition Service.

Key objectives included:

  • Streamlining Day-1 Entanglements
  • Exiting all TSAs promptly, ensuring zero business disruptions
  • Archiving all relevant legacy data
  • Identifying synergies between the short-term separation and opportunities for future integration and transformation

A Timeline of Success

With a well-structured TSA in place, the initial phase saw 17 separate deliverables achieved by the acquisition's first day, all under a Fortium Partner's expert guidance. The momentum didn't stop there. Over the subsequent year, 37 more separation deliverables were completed, all according to plan and without causing any ripples in the business operations.

By the time the transition period wrapped up, all global client entities were not just operating autonomously from their former parent company, but they were also perfectly positioned to tap into the synergies of further integration within the PE Firm’s Portfolio Group.

In Conclusion

Acquisitions, especially globally, come with their fair share of challenges. But with the right partner, strategy, and execution, these challenges can be transformed into opportunities. The collaboration between the PE firm and Fortium is a testament to this, setting a benchmark for seamless IT separations in global acquisitions.

Read the full case study HERE

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