Intralinks insights

Alden Advisors & Volaris Group

Alden Advisors & Volaris Group

Intralinks’ global deal sourcing network facilitates strategic cross-border acquisition of a specialized software provider in the biosciences sector

Alden Advisors & Volaris Group

Situation

The business of acquiring companies is fierce and you need every advantage you can get. For Toronto-based Volaris Group, that advantage to deal sourcing is Intralinks Dealnexus.

Volaris Group is a subsidiary of Constellation Software, Inc. (TSU: CSU) and is a buy-and-hold forever acquirer, specializing in buying established, vertical market software companies. Target companies must have proprietary intellectual property, provide mission-critical software solutions and generate annual revenues between $5 million and $30 million. For a buyer like Volaris Group, it’s a vast universe to scour for the perfect deal target at the perfect time. Sorting through and engaging with all of those companies to find the right opportunity is a daunting task. Timing and visibility are key.

Marc Maurer, Director M&A at Volaris Group, remarks, “We have an internal business development team that is totally focused on sourcing deals, but they simply can’t see everything that’s out there all the time.”

That’s where Intralinks Dealnexus comes into the picture.

About 2,000 miles away in Dallas, Texas, Alden Advisors, a boutique mid-market investment banking firm, was preparing to take a new deal to market. Its client, Topaz Technologies, a highly specialized developer of proprietary animal and clinical research software solutions for the medical research industry was seeking a strategic exit and retained Alden Advisors to help effect one.

Like Volaris Group, Alden Advisors focuses its advisory practice on niche technology companies such as Topaz Technologies that have specialized, high market value intellectual property. Alden Advisors focuses its advisory practice on technology and companies with niche intellectual property. The company leverages its unique Intellectual Property Value Maximization Process or IP VaMP™ to identify and extract maximum value for its clients’ assets, both tangible and intangible.

Alden Advisors and Volaris Group had been active members of Intralinks Dealnexus since 2013 and 2015, respectively. They know that it is extremely helpful in the large deal sourcing landscape, where it’s not always easy to know where to look for the next deal. What they did not know was that they were merely hours away from a fateful Intralinks Dealnexus introduced connection.

Solution

Both Alden Advisors and Volaris Group regularly rely on the Intralinks Dealnexus global online deal sourcing network. For Volaris Group, Intralinks Dealnexus has become an indispensable tool to amplify a pipeline of relevant and actionable deals to supplement the activities of its internal business development team. At Alden Advisors, the intelligence and efficiency that Intralinks Dealnexus injects into the deal process decreases deal timeframes while increasing overall deal success.

Derrick Reagins, Alden Advisors’ Founder and Managing Director, “The reason we use Intralinks Dealnexus before going to market through our internal channels can be summed up in three words: simplicity, simplicity, simplicity. With just a few clicks on Intralinks Dealnexus, I can instantly and discretely introduce our clients to a world of vetted, potential investors, compared to individually contacting the mere 150 or so people on our private list.”

Within two days of Alden Advisors sharing the Topaz Technologies deal on Intralinks Dealnexus, the advisor heard back from Volaris Group, the company that became the ultimate buyer. In all, Alden Advisors ultimately received 10 queries, five of which resulted in indications of interest (IOIs). Of those five, the two most promising IOIs were generated by Intralinks Dealnexus.

A little more than four months later, Alden Advisors closed the deal with one of Volaris Group’s subsidiaries (Cultura Technologies) for a 100% buyout of Topaz Technologies.

Benefits

The Topaz Technologies acquisition got executed so quickly for a variety of reasons. First and foremost, Intralinks Dealnexus’ intelligent matching engine instantly identified a perfect match between Topaz Technologies and Volaris Group’s investment criteria. This enabled Alden Advisors to leapfrog the typically long and arduous deal marketing phase and advance directly into serious negotiations with Volaris Group.

Volaris’ Maurer further explains, “Strong connections with advisors are fundamental to our business. Through Intralinks Dealnexus, we can communicate with many advisors simultaneously. From my perspective, that gives us a scale of visibility we couldn’t possibly achieve strictly using our business development team.”

For Maurer, Intralinks Dealnexus goes beyond just uncovering more opportunities; it delivers high-quality opportunities. “It took me between five and 10 seconds to recognize this was a deal we wanted to pursue. Topaz Technologies was a perfect match for Volaris Group.”

From Alden Advisors’ point of view, Intralinks Dealnexus provides an avenue to reach potential investors that the firm might otherwise never see or know to contact.

Reagins says, “Volaris Group was not even on our internal list of companies that we had targeted for Topaz Technologies. Intralinks Dealnexus not only brought us together, but was the initial source for the contenders with the best offers.”

“With Intralinks Dealnexus, we uncover at least two to three opportunities per month that often lead to NDAs and serious discussions,” said Maurer. He adds that Intralinks Dealnexus also provides a great way to establish ongoing relationships. “I’ve made contact with 150 to 200 new brokers since I started using the Intralinks solution.”

Reagins agrees, “I’m most pleased that now, after this experience with Topaz Technologies, I have a good relationship with Volaris Group, whom I can approach directly about other deals that we’re bringing to market.”


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