CHICAGO—Navigant and Ankura Consulting Group 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 business advisory and expert services firm.
The transaction is valued at $470 million, and is expected to close during the third quarter. Ankura is a portfolio company of Madison Dearborn Partners, a 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, says Julie M. Howard, Chairman and CEO of Navigant.
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," says Howard. "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, says 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."
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