DigiSource USA, Inc.

DigiSource USA, Inc.

Fort Worth, Texas

has been acquired by

Fidelis Capital Partners

Dallas, Texas

Capital Alliance Corporation initiated
this transaction and assisted in its closing.

DigiSource USA, Inc.

The Selling Company: DigiSource USA, Inc. provides testing, assembly, and kitting services in the mobile electronic device industry in North America. The company provides services for a  single Fortune 100 corporation with annual contracts containing very short-term cancellation clauses.

Why the Company Was Sold: DigiSource was the only U.S.-based operation of its Irish parent company, and was the last of several sister companies around the world to be liquidated. DigiSource was profitable and growing, but required a substantial investment of time and capital to diversify its customer base. The parent company chose to liquidate its investment rather than commit additional resources and growth capital.

Capital Alliance’s Performance: After discussions with many national and international acquirers, our name recognition and marketing skills led us to a unique private equity group seeking entry into the third party logistics space. Our direct involvement with the acquirer and the U.S. operator helped to forge a strong relationship with management, giving the acquirer confidence to make a generous offer for the company.

Terms of the Transaction: The selling shareholders required a “stock sale” and reasonably aggressive purchase price and terms. They received a substantial cash down payment and are receiving monthly cash payments based on a percentage of gross profits that should result in their receipt of the full purchase price in three years or less. They were able to reduce their local and international tax burden as a result of structuring the transaction as a stock sale.

The Acquiring Company: Fidelis Capital Partners, with additional funding provided by the RWH Group, Ltd., acquired the stock of DigiSource USA as a platform company for their interests in the third party logistics space.

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