Tryarc’s Acquisition by The Revere Group an NTT Data Company

Transaction

• Tryarc LLC, a Java and Microsoft custom solutions developer as well as an implementation specialist of SAP and Business Objects systems, was rapidly expanding within the Southern and Northern California regions
• The owners of the firm sought a partner to pursue a national rollout strategy for their custom implementation consultants and additionally receive some liquidity either from a strategic partner or an equity sponsor

Challenges

• Although the company has a stronghold with Fortune 500 clients within Northern and Southern California base of operations, its national expansion plan into new territories was less predictable
• The company had successfully penetrated several local multinational clients and was seeking to leverage the resources of a larger multinational partner to expand its specialized implementation and consulting business

Solution

• FocalPoint was able to create value throughout the transaction process by:
  • Effectively communicating key value drivers into a compelling offering memorandum
  • Seeking out a universe of qualified acquirers whose corporate culture most closely matched Tryarc’s
• FocalPoint contacted domestic and multi-national acquirers, and secured multiple offers for the business
• Potential acquirers were drawn to the transaction based on the attractiveness of Tryarc’s
  • Dominant local and regional brand
  • Blue chip Fortune 500 client list
  • Expertise in custom application installation and maintenance
  • Software expertise
  • Customer retention
  • Track record of profitability and growth
• Management ultimately chose The Revere Group, a subsidiary of NTT Data, a multinational systems integration and network services provider, based on NTT’s ability to leverage its international relationships to drive Tryarc’s regional and national growth
  • FocalPoint’s ability to penetrate national as well as multinational strategic buyers enabled management to choose from several alternatives and make the decision that most appropriately satisfied their growth and liquidity needs