Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Intermedia's owner explores sale of communications services firm -sources

Published 08/10/2023, 05:02 AM
Updated 08/10/2023, 10:47 AM
© Reuters. FILE PHOTO: A man speaks on his phone as he walks past the Gherkin and other office buildings in the City of London, Britain November 13, 2018. REUTERS/Toby Melville/File Photo

By Milana Vinn

(Reuters) - The private equity owner of Intermedia Cloud Communications is exploring options including a sale that could value the communications services provider at more than $1 billion, including debt, according to people familiar with the matter.

Buyout firm Madison Dearborn Partners is working with investment bank Evercore on a sale process for Intermedia, which is expected to start in the coming weeks, the sources said, requesting anonymity because the discussions are confidential.

Intermedia is aiming for a valuation of more than 20 times its 12-month earnings before interest, taxes, depreciation, and amortization of about $50 million, the sources said.

Intermedia, Madison Dearborn and Evercore did not respond to requests for comment.

Founded in 1993, Intermedia provides cloud-based communications services, including voice calling, video conferencing and chat services to enterprise customers. The Sunnyvale, California-based company caters to customers across several industries, including healthcare, financial services, and retail.

In patient care, for instance, Intermedia has tie-ups with healthcare-technology firms such as Athenahealth, Allscripts (NASDAQ:MDRX), and Cerner (NASDAQ:CERN), and its communications tools help connect in-office and remote employees with patients to provide virtual care.

Intermedia counts more than 135,000 small and medium-sized businesses among its customers, according to the company's website.

Madison Dearborn Partners bought Intermedia in 2017 from Oak Hill Capital Partners for an undisclosed amount. The Chicago-based buyout firm has raised about $28 billion across eight funds and backed more than 150 companies since its founders established it as an independent firm in 1992, according to its website.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.