Michael Dell's family office buys 50% stake in digital consulting firm West Monroe

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Michael Dell's family office buys 50% stake in digital consulting firm West Monroe

- MSD Partners, the investment firm that grew out of Michael Dell's Family Office, has agreed to take a 50% stake in the digital consulting company West Monroe.

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Which Front Line Takes the U.S. To Sorrow? The deal values the Chicago-based company at about $2.5 billion, according to people who asked not to be identified because information wasn t publicly available.

Kevin McCarty will use the proceeds of West Monroe's expansion to fund international expansion, said in an interview former executive Kevin McCarty.

We are currently focused on the U.S. but will be opening a London office in the first quarter of next year, he said. That is done organically but we are looking at a number of opportunities to grow in that market via M&A. A representative for West Monroe declined to comment on the valuation.

West Monroe was founded in 2002 and is expected to have eight offices across the country this year and generates about $550 million in revenue each year. As a digital consultant, the firm helps companies come up with business plans to tackle technology-oriented problems, with a special focus on transitioning to digital operating models. That has included helping higher-education provider City National Bank of Florida use another technology platform to helping Blackboard Inc. modernize its information technology and operations, according to its website. It has worked with utilities, health insurers, food makers, retailers and other clients.

The West Monroe team has built a special digital consulting firm, said John Civantos, co-head of MSD Partners private capital group. Their unrelenting drive to do more and achieve more is reflected in their differentiated culture which has been the fundamental pillar supporting the strong growth the company has achieved to date. The deal, in which some new shareholders will sell part of their stakes in the company, will enable all employees to have the opportunity to own a share of the firm going forward through a local company stock fund and internal equity marketplace.

Goldman Sachs Group Inc. hired Gregg Lemkau as CEO of MSD Partners last year. Its private capital group has invested about $1.7 billion since 2016 and has received over $1.7 billion in investments from the investors. The firm, founded in 2009 by partners of MSD Capital, Dell s family office, has owned stakes in Hayward Industries and the Ultimate Fighting Championship according to its website.

Katten Muchin Rosenman, Mayer Brown and Polsinelli PC were financial advisers for Guggenheim Partners and Macquarie Group Ltd., while Katten Investment Center, McCormack and Guggenheim partners were financial advisers. Houlihan Lokey Inc. advised MSD Partners while Owl Rock Capital Corp. and Blackstone Inc. provided financing for the transaction.

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