New MainStream Enters into Agreement to Accelerate Starpoint Solutions' Growth through Strategic Acquisitions
New York, NY, March 14, 2013 – New MainStream Capital ("NMS"), a leading lower middle market private equity firm specializing in equity investments, announced today that it has executed a strategic agreement with . Starpoint is a leading provider of human capital and solutions in the Information Technology ("IT") arena, serving Fortune 500 businesses with their staffing and IT solutions needs. Through this strategic agreement, NMS and Starpoint will work together to identify and assess acquisition opportunities in the IT and professional staffing industry in the $25 million to $100 million revenue range. Upon identification of acquisition opportunities, NMS will provide the equity capital to support the acquisition, integration and growth of the combined companies.
The IT Staffing industry represents an attractive sector within the larger professional staffing industry. IT employment has increased 30% from 1999-2011 compared to a 0.8% gain for employment overall during the same period. Furthermore, IT staffing is projected to grow 8% in 2013 benefiting from a large shortage of IT professionals. Staffing Industry Analysts forecast there are currently four times as many IT jobs available as there are job seekers while the supply of newly declared computer science majors is down 39% from the peak in 2000.
"Starpoint and its management team have over 30 years of experience in growing, acquiring and integrating companies to expand our offerings and solutions to our clients. We're excited about partnering with the NMS team, and the goal of acquiring businesses that will complement, expand and enhance our offerings to our customers," says Jeff Najarian, President and CEO of Starpoint.
Martin E. Chavez, NMS Co-Founder and Managing Partner comments, "In Starpoint, we have an excellent opportunity to deploy capital at a time when the IT staffing market is poised for growth. The foundation to capitalize on this growth has been solidly built by Jeff and his team. We look forward to our partnership with Starpoint and building on what Jeff and his team have created over the years and accelerating the Company's growth through strategic acquisitions."
New MainStream Capital is a New York and Dallas-based private investment firm specializing in strategic equity investments and leveraged buyouts of lower middle market companies. The Firm was formed through the spin-out of a group of portfolio companies from the Goldman Sachs Merchant Banking Division. NMS focuses on companies headquartered in the United States poised to benefit from demographic growth trends (such as rapidly growing population and industry sectors due to aging, multi-cultural trends, and other factors). NMS invests across a broad spectrum of industries, with particular concentration on: Healthcare Services, Consumer Products and Services, and Specialized Business Services.
About Starpoint Solutions (www.starpoint.com):
For more than 30 years, Starpoint Solutions has been a trusted source of human capital and solutions to help our clients achieve and exceed their business goals. Starpoint provides a full range of staffing, custom application development, enterprise resource planning (ERP), and job search services. Whether you have a project or need to supplement your staff, we can help. Founded in 1982, we are privately held and have offices nationwide.
Starpoint Solutions Marketing Department
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