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(Reuters) – The private equity owner of Intermedia Cloud Communications is exploring options including a sale that could value the communications services provider at more than $1 billion, including debt, according to people familiar with the matter.
Buyout firm Madison Dearborn Partners is working with investment bank Evercore on a sale process for Intermedia, which is expected to start in the coming weeks, the sources said, requesting anonymity because the discussions are confidential.
Intermedia is aiming for a valuation of more than 20 times its 12-month earnings before interest, taxes, depreciation, and amortization of about $50 million, the sources said.
Intermedia, Madison Dearborn and Evercore did not respond to requests for comment.
Founded in 1993, Intermedia provides cloud-based communications services, including voice calling, video conferencing and chat services to enterprise customers. The Sunnyvale, California-based company caters to customers across several industries, including healthcare, financial services, and retail.
In patient care, for instance, Intermedia has tie-ups with healthcare-technology firms such as Athenahealth, Allscripts (NASDAQ:MDRX), and Cerner (NASDAQ:CERN), and its communications tools help connect in-office and remote employees with patients to provide virtual care.
Intermedia counts more than 135,000 small and medium-sized businesses among its customers, according to the company’s website.
Madison Dearborn Partners bought Intermedia in 2017 from Oak Hill Capital Partners for an undisclosed amount. The Chicago-based buyout firm has raised about $28 billion across eight funds and backed more than 150 companies since its founders established it as an independent firm in 1992, according to its website.
