Gainline Capital Partners Announces Acquisition of SourceHOV Tax

STAMFORD, CT – In a significant move, Gainline Capital Partners ("Gainline") has made public its successful acquisition of SourceHOV Tax (referred to as the "Company") from Exela Technologies, Inc. (NASDAQ: XELA), executed through a carve-out transaction. With its headquarters nestled in Fort Worth, TX, SourceHOV Tax has emerged as a dominant player in the realm of tax incentive solutions catering to accounting firms and mid-sized companies spanning the U.S. market. Renowned for its technical prowess and expansive reach, the Company has established itself as a premier outsourced incentives provider. A notable achievement was its service to over 2,000 clients in 2019 across its flagship offerings: R&D Tax Credits, LIFO accounting, and cost segregation solutions.

The existing leadership squad at SourceHOV Tax, headed by Chris Henderson, Deborah Roth, and Chris Hitselberger, is slated to remain at the helm. Reflecting on this transition, Mr. Henderson expressed his enthusiasm, stating, "Our collaboration with Gainline in realizing our autonomous corporate vision is a source of excitement. Gainline's adeptness in bolstering both organic and inorganic growth initiatives is set to be an invaluable asset to SourceHOV Tax. Together, we aim to broaden our solutions spectrum, thereby enhancing the caliber of service we provide to our esteemed clientele."

Allan Weinstein, the Managing Partner at Gainline, voiced his elation, saying, "Our partnership with the SourceHOV Tax team has us brimming with enthusiasm. The Company's value proposition, underscored by services that directly translate into positive financial outcomes for clients, coupled with its esteemed reputation for efficiency and quality, cements its standing as a truly remarkable enterprise. SourceHOV Tax aligns seamlessly with Gainline's strategic approach of investing in enterprises endowed with robust fundamentals and poised for their inaugural institutional infusion." Joining the Company's board of directors, Kerri McNicholas, a Principal at Gainline, concurred, "SourceHOV Tax finds itself strategically positioned to leverage the escalating recognition of, and burgeoning demand for tax incentive solutions, especially as companies actively seek avenues to optimize their cash flow."

About Gainline Capital Partners

Gainline Capital Partners is a private equity firm specializing in investments within the U.S. middle market sector. Focusing on profitable enterprises with enterprise values of up to $250 million, Gainline collaborates with management teams to realize their visions, stimulate sustainable growth, and establish lasting value. For more information, please visit www.gainlinecapital.com.