Irving-based Exela Technologies hires firm to help it explore strategic alternatives – The Dallas Morning News

An Irving technology company that provides business automation software to 60% of the nations Fortune 100 companies is hiring an investment banking firm to assist it in exploring strategic alternatives.

Exela Technologies Inc. said Wednesday that it has retained UBS Investment Bank for help in pursuing alternatives to strengthen its balance sheet and enhance shareholder value.

The disclosure comes two weeks after Exela secured a five-year, $150 million term loan that executives said improved the companys financial position. The loan was from global alternative investment firm Angelo Gordon.

On that basis, the companys previously announced strategic initiative to improve liquidity to approximately $150 million will be substantially achieved, Exela said at the time.

The companys debt totaled $1.477 billion as of Sept. 30. In November, Exela said it wanted to reduce debt by as much as $200 million, largely by selling off business lines. It had already sold its tax benefit group for $40 million in March and its physical records storage and logistics business for $12.3 million in July.

As part of its third-quarter financial report, Exela said it expects to make additional divestitures of up to $150 million.

In the companys quarterly earnings call in November, CEO Ron Cogburn noted the COVID-19 pandemics impact on Exela and its customers.

Throughout the pandemic, our dialogue with customers has increased as they analyze the best way to balance reopening physical office locations with enabling work-from-home solutions on a more long-term basis, Cogburn told investors.

We estimate that going forward, approximately half of our customers will remain and maintain some level of work-from-home environments, which we believe will drive greater need for Exela services, he said. ... They are also seeking greater cost efficiency across their organizations through increased automation.

Exelas third-quarter revenue of $305 million was down more than 18% from the same period a year ago. For the nine months ending Sept. 30, the companys revenue of $978 million was 16% lower than a year earlier.

Sixty percent of the companys revenue is derived from its 100 top customers.

With the remaining 40% of our revenue generated from all of the other customers, we are focusing additional sales and marketing attention on accounts that have the ability to expand significantly, Cogburn told investors and analysts.

Exelas 21,000 employees provide cloud-enabled services to over 4,000 customers in 50 countries. Its back-office software is used for information management, workflow automation and integrated communications, as well as industry-specific products for banking, health care, insurance and the public sector.

It was the regions 54th-largest public company in 2019, with revenue of $1.6 billion.

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Irving-based Exela Technologies hires firm to help it explore strategic alternatives - The Dallas Morning News