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Under the advisement of TripleTree, OneNeck IT Services Corporation, a leading provider of ERP outsourcing and managed services for mid-market companies, entered into a $12.8 million equity investment agreement with WestView Capital Partners.

Founded in 1997, OneNeck provides a comprehensive and flexible suite of outsourcing solutions specifically designed to help mid-market companies improve and leverage their IT infrastructure and enterprise applications. The company has experienced greater than 20% annual growth over the last four years while achieving seven consecutive years of profitability. As a result, OneNeck has established itself as the leading outsourcing services provider to mid-market companies. OneNeck supports a variety of ERP applications, including SSA Baan, J.D. Edwards and Microsoft Business Solutions’ Axapta. The Company’s outsourcing solutions incorporate a wide range of services including application, database and network management, data center management, 24 x 7 customer support, disaster recovery and desktop support.

OneNeck retained TripleTree in December 2004 to assist the Company with its exploration of both strategic growth plans and recapitalization opportunities. TripleTree, selected because of its research and expertise in the outsourcing sector, identified a financial partner that could structure a deal to satisfy a range of divergent requirements from existing management and outside shareholders while also serving as an active financial partner to help finance potential future acquisitions.

“One of our central challenges with OneNeck was educating the investor community relative to OneNeck’s unique strategy and profitable business model. A fair amount of negative bias exists among private equity firms that have seen the vast majority of ERP outsourcing and managed services firms either fail or become sold to larger companies at mediocre values. We were able to overcome this bias and successfully solicit attractive proposals from each of the five private equity firms that we introduced to the Company. WestView presented the best fit for OneNeck not just from the standpoint of their financial proposal, but also because of their investment philosophy and approach to support the Company as it grows,” said Scott Tudor, Senior Principal at TreeTree who spearheaded the transaction.

TripleTree is a boutique investment bank that specializes in mergers and acquisitions, raising capital, and providing financial advisory services to businesses in the technology, business services, and healthcare industries with a hands-on approach. An investment bank and an industry thought leader, TripleTree knows how to plan a successful campaign and how important it is to find the right partner – a partner that will strategically complement the Company’s offerings, as well as form a team that is motivated along similar strategic directives.

Said OneNeck CEO Chuck Vermillion, “ We retained TripleTree because of their depth of knowledge in the IT outsourcing industry and their track record of success in our sector. What we experienced once we started working with TripleTree was a dedicated team of senior advisors who were willing to roll up their sleeves to partner with us as we weighed various alternatives for our firm. I had previously been led to believe that investment banks would try to push work off on our management team, but with TripleTree I found that they are always trying to take work off of my plate. I was also impressed with TripleTree’s professionalism and integrity – rather than pushing for the largest financing transaction with the highest fee potential, TripleTree instead focused on finding the best financial partner for OneNeck and its shareholders."

To read the full case study on this transaction, please visit the Engagement page on TripleTree’s website or click here.

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