Case Study

FTI Technology Facilitates Divestiture Rights with More Than 1,000 Supplier Relationships for Global Software Company

In March 2021, a global security software corporation, announced the divestiture of one of its business units to a private equity company. The corporation engaged FTI Technology’s Contract Solutions practice to ensure that divestiture rights with more than 1,000 vendors and suppliers were in place by the transaction close date. The team had eight weeks to complete the project.

Our Role

FTI Technology’s Contract Solutions team managed the entire process, ensuring the client had all divestiture rights in place by the close date. The team delivered the following:

  • Communication with all relevant vendors with the goal of quickly resolving which entity would use the contracts post divestiture, and how those contracts would be used.
  • A decision-making framework to determine whether duplicative agreements would be assigned to one of the two entities, or duplicated for both.
  • Various workflows, leveraging FTI Technology’s experienced contract negotiators to track master reporting records that documented negotiations and the impact, questions, talking points, various escalation points and follow ups involved with each supplier.
  • Programmatic approach enabling a negotiator from FTI Technology’s team to handle all written communications, meetings and discussions relating to vendor pricing and terms and conditions, in a timely manner.
  • Distribution of letters on behalf of the client’s legal and procurement teams to each entity, tracked further communications and followed up with numerous calls and emails as needed to complete negotiations.
  • Advocated for signatures and/or further information from the suppliers to address any lingering issues or concerns.