Court Square provides $638m exit for Platinum

New York-based private equity firm Court Square Capital has agreed to acquire Dallas, Texas based CompuCom Systems, an information technology outsourcing company, from Tom Gores’ Platinum Equity for $638 million (€465 million).

The transaction, which is expected to close in the second half of 2007, will be financed through a combination of equity provided from Court Square and debt financing provided by Bear Stearns & Co.

Platinum Equity took CompuCom private in 2004 for $254 million, and later expanded the company through the add-on acquisition of GE IT Solutions in November 2004. The Beverly Hills-based Platinum Equity focuses on the information technology, telecommunications, logistics, manufacturing, and entertainment distribution sectors. The firm is in the midst of raising its second fund, which is well on its way to exceeding its $1.5 billion target. The fund will likely close in September.

Court Square was formerly Citicorp Venture Capital, the private equity and venture capital arm of Citigroup until it was spun off in 2006.

Upon the completion of the deal, CompuCom will make a tender offer to purchase all outstanding 12 percent senior notes due 2014, and Platinum Equity will make a tender offer to purchase all outstanding senior floating rate toggle notes due 2013.

Bear Stearns acted as a financial advisor and Dechert is acting as a legal advisor to Court Square. Bingham McCutchen is acting as a legal advisor to CompuCom and Platinum Equity.