- Transaction streamlines Navigant’s
focus on management consulting and managed services across
high-growth industries
- Proceeds expected to fund return of up
to $175 million to shareholders and ongoing investment in strategic
M&A and organic growth opportunities
Navigant (NYSE: NCI) and Ankura Consulting Group, LLC (Ankura)
today announced a definitive agreement under which Navigant will
sell its Disputes, Forensics and Legal Technology (DFLT) segment
and its Transaction Advisory Services (TAS) practice to Ankura, a
leading business advisory and expert services firm.
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the full release here:
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The transaction is valued at $470 million, and is expected to
close during the third quarter, subject to customary regulatory
approvals and closing conditions. Ankura is a portfolio company of
Madison Dearborn Partners (MDP), a leading private equity firm
based in Chicago.
Navigant expects to realize approximately $370 million in net
cash proceeds from the transaction, after taxes and transaction and
separation-related costs. The company intends to use the proceeds
to fund the return of up to $175 million in capital to shareholders
over the next 12 months, most of which will be accomplished via the
company’s previously announced share repurchase program, and to
invest in strategic M&A and organic growth opportunities.
Temporarily, the company intends to repay its credit facility,
until additional capital needs arise. The company also intends to
initiate an ongoing dividend on terms to be decided at or post
transaction close.
“The sale of the DFLT and TAS businesses advances Navigant’s
transformation. By separating those businesses from Navigant’s
management consulting and managed services businesses, we believe
each organization will be advantageously positioned for growth and
success in their respective markets,” said Julie M. Howard,
chairman and CEO of Navigant.
“With a sharpened focus on our energy, financial services, and
healthcare sectors, along with the capital to invest in scalable
digital, data and analytics solutions, Navigant is poised to serve
our clients even more effectively as they navigate the
transformational changes driving their industries. We are confident
that concentrating our business in higher-growth markets, augmented
by scalable solutions and enhanced revenue visibility, will enable
us to deliver consistent growth and drive greater long-term value
for our shareholders,” said Howard.
Founded in 2014, Ankura differentiates itself by providing an
integrated approach utilizing customized solutions and professional
capabilities across disciplines to address the diverse and complex
challenges and opportunities present in each client situation.
Ankura offers deep expertise and experience in multiple
disciplines, including forensics, risk, compliance, data and
technology, litigation and disputes, turnaround and restructuring,
and strategy and operations. The firm’s unique model focuses on
enabling its professionals to apply their expertise to help clients
across issues, industries and disciplines.
The addition of Navigant’s DFLT and TAS businesses strategically
complements Ankura’s existing capabilities and geographic reach,
creating a unique global business advisory firm with over 1,400
employees in 34 offices worldwide and over $500 million in
revenues.
“Bringing Navigant’s global DFLT and TAS businesses to Ankura
represents a milestone opportunity to establish a global footprint,
enhance our client offerings, deepen our relationships with our
clients, and provide new and exciting opportunities for our
people,” said Roger Carlile, CEO of Ankura. “Ankura was founded to
create a different kind of business advisory firm based on
collaboration and innovation, and our success and growth is a
testament to our approach. Navigant’s DFLT and TAS professionals
are leading experts in their fields who share these same beliefs,
and we are excited to welcome our new colleagues to our growing
platform.”
“Our collaborative culture, our commitment to our clients, and
our investment in our people are the foundation upon which we are
building Ankura. In our interactions, the DFLT and TAS
professionals have demonstrated the same values, collaborative
spirit, and authenticity that are the fabric of who we are and how
we interact as colleagues and as service providers,” said Philip
Daddona, co-president of Ankura. “Working together will create
positive energy in the marketplace and for the growth of our
people.”
Upon the close of the transaction, Navigant will be a highly
concentrated management consulting and managed services firm,
focused on rapidly transforming industries including healthcare,
energy, and financial services.
“This transaction is a key component of our strategy to continue
to scale a business that possesses greater commonality in client
needs and is positioned to benefit from shared, focused
investments,” said Lee Spirer, Navigant chief growth and
transformation officer. “We intend to accelerate our investments in
platform capabilities such as digital, data, and analytics, that
when combined with our domain expertise in each of our industries,
will create solutions that will drive sustainable value for our
clients in innovative ways demanded by today’s rapidly changing
global marketplace.”
Navigant’s sale of the DFLT and TAS businesses follows a
thorough and competitive sale process which included multiple
interested parties. Jefferies LLC acted as exclusive financial
advisor to Navigant. Sidley Austin LLP served as legal counsel to
Navigant. Deutsche Bank Securities Inc. and SunTrust Robinson
Humphrey Inc. served as M&A advisors to Ankura. Kirkland &
Ellis LLP served as M&A legal counsel to Ankura, and Davis Polk
& Wardwell LLP served as financing counsel to Ankura.
CONFERENCE CALL AND WEBCAST
DETAILS
Navigant will host a conference call and webcast to discuss the
transaction at 9:00 a.m. Eastern Time (8:00a.m. Central Time) on
Monday, June 25, 2018. The conference call may be accessed via the
Navigant website (investors.navigant.com) or by dialing
888.455.9733 (630.395.0358 for international callers) and
referencing pass code “NCI.” An archived version of the webcast
will also be available via the Navigant website. Supplemental
presentation materials for the webcast will be furnished to the SEC
and will also be available via the Navigant website.
About Navigant
Navigant Consulting, Inc. (NYSE: NCI) is a specialized, global
professional services firm that helps clients take control of their
future. Navigant’s professionals apply deep industry knowledge,
substantive technical expertise, and an enterprising approach to
help clients build, manage and/or protect their business interests.
With a focus on markets and clients facing transformational change
and significant regulatory or legal pressures, the Firm primarily
serves clients in the healthcare, energy and financial services
industries. Across a range of advisory, consulting, outsourcing,
and technology/analytics services, Navigant’s practitioners bring
sharp insight that pinpoints opportunities and delivers powerful
results. More information about Navigant can be found at
navigant.com
About Ankura
Ankura is a business advisory and expert services firm defined
by HOW we solve challenges. Whether a client is facing an immediate
business challenge, trying to increase the value of their company
or protect against future risks, Ankura designs, develops, and
executes tailored solutions by assembling the right combination of
expertise. We build on this experience with every case, client, and
situation, collaborating to create innovative, customized
solutions, and strategies designed for today’s ever-changing
business environment. This gives our clients unparalleled insight
and experience across a wide range of economic, governance, and
regulatory challenges. At Ankura, we know that collaboration drives
results. For more information, please visit: www.ankura.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180625005392/en/
Kyle Bland, 1-312-573-5624Navigant Investor
Relationskyle.bland@navigant.comorTim Blair, 1-303-383-7344Navigant
Corporate Communicationstimothy.blair@navigant.comorKate Murray,
1-212-371-5999For Ankura Media RelationsankuraPR@abmac.comorAnjula
Garg, 1-917-756-9021Ankura Corporate
Communicationsanjula.garg@ankura.com
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