Investcorp acquired Veritext Holding Co., the private equity-owned provider of deposition and litigation support services to law firms.

The deal provided The Riverside Co., the seller, with a 5.1x cash-on-cash return and a 38% IRR. Over the course of Veritext’s stay with Riverside, extending five years, it completed a total of 13 deals.

Terms of the transaction were not disclosed and calls seeking comment were not acknowledged by press time.

From Riverside, Andrew Strauss, a portfolio partner, and Chip Walker, a principal, worked on the transaction.

Harris Williams advised the seller on the deal, while Marks Baughan & Co. advised Investcorp.

Madison Capital Funding was sole arranger of senior debt financing. Mezzanine financing was provided by Oaktree Capital Management and PennantPark Investment Corp.

Staffing, temp services and business processing services deals have increasingly emerged as companies look to outsource functions to trim costs. Further, given the stall in hiring, buyers are potentially reviewing targets again after the labor market had demonstrated gains earlier in 2010.

This month, Harvest Partners backed tech-staffing company Insight Global Inc. and in May, business processes outsourcer Ryla Inc. was sold by Frontier Capital to Alorica Inc.

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