Livingstone has advised the multiple sale transactions of the assets of Quadrant 4 System Corporation (OTCPK:QFOR.Q). The transactions were consummated pursuant to §363 of Chapter 11 of the United States Bankruptcy Code. Livingstone acted as the financial adviser to Quadrant 4.
Quadrant 4 is a diversified technology company providing IT staffing and solutions as well as healthcare and education technology platforms. In June 2017, Quadrant 4 filed for bankruptcy protection following a series of troubling events including the filing of a government complaint against the former CEO and CFO for alleged wire fraud and filing of false financial statements.
Livingstone conducted expedited global sales processes for the various business units to over 230 buyers, yielding multiple competitive auctions and closing on six separate transactions.
- Sale of Quadrant 4’s IT Solutions assets to Aspire Systems Consulting, Inc.
- Sale of Quadrant 4’s Legacy IT Staffing assets to Intellyk,
- Sale of Quadrant 4’s Education Technology assets to First Tek,
- Sale of Quadrant 4’s Stratitude Staffing assets to JA Tech,
- Source Code License and Services Modification Agreement with Cognizant TriZetto Software Group,
- Sale of Quadrant 4’s Healthcare Technology assets to BIP Lender (an affiliate of BIP Capital)
Robert Steele, Quadrant 4’s newly appointed CEO commented: “Livingstone had the experience and expertise to help manage the situation, and successfully closed six separate transactions which resulted in a significant recovery for our stakeholders. At the time of our first interaction with Livingstone, things were extremely challenging with our company and a path to this type of successful outcome was not clear.”
Partner Joe Greenwood commented: “We used our expertise selling companies in tough situations to piece together multiple competitive auctions and transactions in which the sum of the parts certainly was more valuable than the whole. This transaction is yet another example of our ability to maximise value for service businesses in which the stakeholders’ path to maximum recovery requires creative deal-making.”
Partner Andrew Bozzelli, comments: “This transaction highlights the breadth of our Media & Technology practice where we closed transactions for Quadrant 4’s IT staffing, IT solutions, healthcare technology, and education technology businesses within one engagement. It was a pleasure working with Robert, his team, and the other advisers as it was truly a team effort to achieve this result.”
Silverman Consulting served as the restructuring adviser while Adelman & Gettleman Ltd served as legal counsel to Quadrant 4.