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SCD advises SXiQ on their sale to IBM
SXiQ is a digital transformation specialist operating in the domains of cloud, applications & cybersecurity.
IBM is a global technology company providing cloud computing, AI, and enterprise solutions.
Deal Rationale 
SCD Approach 
SCD Value Add 
Overview
Advisory & Preparation 2 months
Go-To-Market to Closing 6 months
Potential Buyers Approached 32
Advisors
Sell Side Lawyers Nicholas O’Donohue & Co
Buy Side Lawyers Jones Day
Buy Side Financial Advisor KPMG
Deal Rationale
The transaction allowed IBM to increase its penetration in the Australian market, gain access to SXiQ’s large key clients, and address the scarcity of tech talent in Australia, which aligned with IBM’s strategy to enhance its cloud and AI capabilities.
SCD Approach
SXiQ engaged SCD to run a full sale process aimed at exiting historical financial investors and creating liquidity for incentivised managers. Leveraging SCD’s expertise in the IT M&A market, particularly within the cloud ecosystem, SCD and SXiQ prepared the necessary sale materials over a two-month period. SCD facilitated management presentations with seven potential buyers, resulting in three competitive offers. SXiQ then entered exclusivity with IBM and proceeded with due diligence.
SCD Value Add
SCD leveraged its deep industry knowledge and expertise in the cloud ecosystem to drive a fast and competitive process, resulting in multiple offers for SXiQ. Our experience in managing cross-border deals was crucial in navigating complex due diligence issues, such as staff incentives and contractor status. By positioning SXiQ as a key asset to IBM’s hybrid cloud and AI strategy, we helped secure a strong valuation. SCD’s ability to highlight SXiQ’s access to key clients and address the scarcity of tech talent in Australia further enhanced the attractiveness of the deal.
SCD Advisory’s deep understanding of the IT services sector proved invaluable in executing such a high-profile cross border deal with IBM. We were highly impressed with SCD’s experience throughout the transaction, maintaining our best interests as the top priority at all times, resulting in a great outcome.
Managing Director, SXiQ
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