The sale of Bluetab Solutions (Bluetab) was such a pleasure to be involved with. It was meticulously well prepared for sale and had an openness to advice that allowed us to create the best possible outcome for shareholders.
The IT services company is a leader in its field. Founded by Tom Uhart and Jose Luis López in 2005 and based in Madrid, Bluetab enables customers to drive more value from data by transforming on-premises data and analytics estates to hybrid multi-cloud data platforms. The company does so by using a combination of public cloud providers and technologies, including Red Hat OpenShift.
By 2021, the founders had differing strategic visions for the company and reached a decision to sell.
The ability to understand the needs of each shareholder and to shape an equity story which was compelling.
Vendor Due diligence drives bidding
Ahead of the second round of bidding, we advised Bluetab to commission their own Vendor Due Diligence process to prepare for the sale most effectively. This allowed the company to put its best foot forward from a commercial perspective, making it more appealing to potential bidders, while maintaining competition until final phases.
Decision time
Receiving several offers from different kinds of bidders enabled a the Bluetab management team to be able to make a considered decision:
- A private equity investment would have meant maintaining leadership on the project
- By comparison, the three strategic bidders had different ramifications. A smaller, regional player would have allowed the owners to have had a greater presence in domestically focused company, while opting for a global bidder would have meant a more prestigious role in a larger company.
In the end IBM Global Business Services (IBM) was felt to be an excellent fit, offering a chance to work with a world-beating company, for several years as the company is integrated.
IBM saw potential, not only in the technical prowess of Bluetab, but its strong leadership and motivated workforce.
The offer had an ideal structure both for the shareholders and the “Next Generation” management team.
After sale care
The Transaction was a success for shareholders both in terms of value as well as structure. The transaction was also recognised as ‘Deal of the Year’ in the mid-market mergers and acquisitions sector for Clearwater in Spain.
Bluetab employees were integrated into the wider IBM ecosystem, allowing the attributes to the company to realise significantly more value than would have been possible if they had continued to work alone.
Well prepared to sell
Right from the start, the Bluetab team were clear they needed an adviser to facilitate the transaction, and the management team assessed several advisors to ensure they selected a company that would meet their needs. There was a competitive pitch process, with Clearwater competing against six rivals, both from Spain and across Europe.
I believe we were selected as the shareholders saw we were straightforward; we could frankly discuss the risks to their company, as well as the opportunities, and we didn’t try to oversell their potential. They could see we also had a lot of background in technology transactions, so our credentials in this area were strong.
In short, it was a great cultural fit and there was a natural trust between us.
Which route to take?
At the outset, there was no firm idea of what kind of exit was preferred. This meant we could launch a dual track process, contacting both strategic players and private equity (PE) investors.
Several factors played in our favour at this stage. The management was well prepared for a sale; the business was well run and there was an incredible management team in place.
We were able to work with Bluetab in building an attractive equity story by showcasing the most appropriate KPIs (key performance indicators) for the technology sector. Our deep expertise in this area enabled us to understand what bidders are looking for. Typical KPIs include average daily rate, revenue per employee, recurrent revenues and employee attrition rates, for example, metrics which allow them to rapidly position the target in a matrix of comparable opportunities.
It was also the right time from a market perspective to sell an IT services company, especially one specialising in ‘big data’, which was enjoying its moment in the sun.
These factors combined to attract strong feedback and more than ten offers.
The Clearwater difference
