Apollo Global Management portfolio company Novitex has agreed to merge with SourceHOV and Quinpario Acquisition II (NASDAQ: QPAC), a special-purpose acquisition vehicle, to create a new company called Exela Technologies, which will provide fintech and other business services to customers in more than 55 countries. Expected to close in 2Q, the deal is valued at approximately $2.8 billion, representing a 7.3x EBITDA multiple based on the company's 2017 projections.
Shareholders from SourceHOV and Novitex will maintain 100% of their current equity and be majority holders in Exela, which expects 2017 revenues of roughly $1.5 billion. The deal will be partially funded with $1.35 billion in debt financing, cash from Quinpario and rollover of equity. Exela will be listed on the NASDAQ following the deal's close.
Apollo has backed Novitex (fka Pitney Bowes Management) since 2013, when the firm acquired the provider of management services for some $400 million.