Investcorp has acquired legal services firm Veritext from The Riverside Company.
Investcorp has acquired legal services firm Veritext from private equity group The Riverside Company.
The deal, which was for an undisclosed amount, saw Riverside make a 5.1 times return on its investment.
Investcorp was founded in 1982 and is a provider and manager of alternative investment products. It has offices in London, New York nd Bahrain. Investcorp’s business areas include private equity and hedge funds.
Founded in 1997, Veritext provides deposition and litigation services to the legal industry. Veritext is also the parent company of Ambassador Legal Services, NationalDepo and CourtReporterNet.com. The firm is based in New Jersey and has 30 office locations across the US.
Riverside acquired Veritext in 2005 and the sale is its second exit this year. The investment was made from the Riverside Capital Appreciation Fund and the firm provided the capital for 13 acquisitions during its holding period.
Chris McCollum, a managing director in Investcorp’s private equity business, says: ‘We believe that Veritext has multiple ways to grow. It has a leading position in the growing deposition services market, the capability to generate strong cash flow and the opportunity to complete further add-on acquisitions.’