September 24, 2012
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Archives for September 24, 2012

Linden Capital Promotes Bill Drehkoff to Partner; Todd Van Horn to Principal

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Linden Capital Partners has promoted Bill Drehkoff to Partner and Todd Van Horn to Principal. “Bill and Todd exemplify Linden’s core values especially our commitment to collaboration with our Operating Partners. We are thrilled to recognize their respective achievements and the ongoing value they bring to Linden,” said Brian Miller, Managing Partner.

“Bill’s promotion formally recognizes his significant contributions to our team, our portfolio companies, and our culture,” said Eric Larson, Managing Partner. Mr. Drehkoff re-joined the team at Linden in 2009 after beginning his principal investing career with the founders of Linden Capital Partners at First Chicago Equity Capital over 12 years ago. Mr. Drehkoff’s focus has been on developing platform investments in diagnostics, oral care, life sciences, and specialty distribution. He currently serves on the board of directors of Hycor BioMedical and SeraCare Life Sciences. Following his experience at First Chicago Equity Capital, Mr. Drehkoff earned an MBA from the University of Chicago and was a Principal at The Boston Consulting Group.

Todd Van Horn joined Linden in 2008 and focuses on investments in the medical products, orthopedics, and laboratory services sectors. “Over the last four years, Todd has been a valuable team member and has developed deep sector expertise,” said Managing Partner Tony Davis. Prior to joining Linden, Mr. Van Horn was a Principal and founding member of Healthcare Investment Partners, a private equity partnership focused on healthcare products and related services companies. He began his career in the healthcare investment banking group at Credit Suisse First Boston. Mr. Van Horn currently serves on the board of directors of Strata Pathology Services and CORPAK MedSystems. He holds a Bachelor of Science in Molecular, Cell and Developmental Biology from the UCLA and an MBA from Northwestern.

Linden Capital Partners is focused exclusively on leveraged buyouts in the healthcare and life science industries. Linden’s strategy is based upon four elements: specialization on middle market healthcare and life science companies; integrated private equity and operating expertise; customized value creation programs for each portfolio company; and strategic relationships with large corporations. The firm is located in Chicago, IL (www.lindenllc.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-24-12

Riverside Acquires Future Medical

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Specialized Medical Services, a portfolio company of the Riverside Company, has acquired Future Medical, a provider of rental respiratory equipment. The acquisition of Future Medical expands upon the company’s position as the largest provider of respiratory equipment, oxygen and related products and services to nursing homes and hospices throughout the U.S.

Future Medical is a provider of rental respiratory equipment, liquid oxygen and related services to nursing facilities in 13 Midwestern and Southeastern states. The company was founded in 1998 and is based in Waterford, MI (www.futuremedicalinc.com).

“This acquisition adds an excellent customer base and outstanding facilities,” said Riverside Managing Partner Loren Schlachet. “Future Medical allows SMS to seamlessly enter some new markets while strengthening its already impressive national position.”

Specialized Medical Services (SMS) provides respiratory equipment, oxygen and related products and services to nursing homes and hospices throughout the U.S. Services provided include respiratory equipment, comprehensive oxygen services, disposable supplies, along with clinical, billing and consulting services. The company’s client base covers more than 40 states and 2,000 facilities, including 12 of the 20 largest nursing home chains in the country. The company is based in Milwaukee, WI (www.specializedmed.com).

Riverside Principal Jack Nestor said that this transaction will benefit customers of SMS. “SMS now offers services in more than 40 states for approximately 2,000 facilities,” said Mr. Nestor. “Customers are increasingly turning to larger providers like SMS because of its ability to provide comprehensive services that combine standard oxygen and equipment needs with superior clinical support.”

Working with Mr. Schlachet and Mr. Nestor on the transaction for Riverside were Operating Partner Dave Logan, Assistant Vice President Dan Haynes, Associate Grady McConnell, and Finance Director Dave Pecore.

PNC and Medley Capital provided financing for the transaction, Jones Day was Riverside’s legal counsel, and Deloitte & Touche advised Riverside on financial due diligence.

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $200 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 295 transactions with a total enterprise value of more than $6 billion. The firm is headquartered New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-24-12

TA Associates Completes Buyout of SpeedCast

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TA Associates has acquired  a network and satellite communications service provider, from Asia Satellite Telecommunications Co.

SpeedCast is a network and satellite communications service provider offering managed networks services in over 30 countries throughout Asia, the Middle East and Africa. SpeedCast’s customers include telecom carriers, Internet service providers, governments and non-governmental organizations, and other enterprises requiring communication services in locations where wire-based communication is not possible or practical, or where mobility is required. Through its SeaCast product, the company serves the broadband needs of the maritime and offshore oil and gas industries. The company has 8 international sales & support offices and 16 teleport operations and is based in Hong Kong with offices in Beijing, Singapore, Dubai and Kuala Lumpur (www.speedcast.com).

“As a profitable and rapidly growing company, SpeedCast ideally fits TA’s investment profile,” said Edward Sippel, Managing Principal – Asia Pacific at TA Associates. “As one of the largest VSAT operators serving Asia, the Middle East and Africa, and one of the few with a multi-country footprint, SpeedCast has the opportunity to become the leading provider in a vibrant and burgeoning market. TA looks forward to collaborating with SpeedCast management to execute a strategy of organic and acquisitive growth.”

VSAT service revenues in Asia, the Middle East and Africa are projected to grow at an 8% compound annual growth rate over the next five years, approximately twice the rate of Western markets, according to industry analyst Comsys. The global maritime VSAT market is experiencing particularly robust growth. Comsys reported that worldwide maritime VSAT service revenues doubled to $800 million between 2004 and 2009.

“We are pleased to welcome TA Associates as an investor in SpeedCast and to our Board of Directors,” said Pierre-Jean Beylier, the CEO of SpeedCast, who will continue as CEO of the business. “We look forward to working with TA because of their demonstrated ability to add value to their portfolio companies, and because of their management-friendly approach. We see several near- and long-term opportunities for growth in our markets and will benefit from TA’s support on these endeavors.”

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968 TA has invested in over 400 companies globally and has raised more than $18 billion in capital. The firm was founded in 1968 and has offices in Boston, London, Menlo Park, Hong Kong and Mumbai (www.ta.com).

“We see a number of factors driving the positive growth prospects for SpeedCast,” said Michael Berk, a Managing Director at TA Associates. “Compared with Western markets, there is ample room for overall broadband penetration in SpeedCast’s operating regions, and wire-based broadband access is not yet economically viable in the remote locations and archipelagoes common in many Asian countries. In the maritime market, the shipping industry increasingly sees the need for broadband at sea to manage functions remotely, comply with data and communication requirements in the context of security, and as a tool for recruiting and retaining younger staff.”

 © 2012 PEPD • Private Equity’s Leading News Magazine • 9-24-12

Clearlake Capital Group Acquires Mformation Technologies

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Clearlake Capital Group has acquired substantially all of the assets of Mformation Technologies, a provider of mobile device management (MDM) software. Clearlake is providing a significant capital infusion to accelerate the company’s growth. The new company will be named Mformation.

“With more than 500 million devices under management, over 50 leading service provider and enterprise MSP customers, and growing demand for advanced mobile device management solutions from mobile operators and large organizations, we believe Mformation has a significant and growing market opportunity,” said Todd DeLaughter, Mformation CEO. “We are excited to partner with the Clearlake team, who shares our vision for the company’s potential and brings financial and operational expertise to help us execute on our plan for continued growth.”

Mformation provides mobile device management software that enables mobile operators and service providers to manage and control wireless computing devices, consumer electronics, and other machines. The company offers an integrated mobile device management software solution for open mobile alliance DM-based provisioning and configuration; firmware over the air management; smart phone application management; diagnostics and repair for mobile devices; security management for mobile devices and data; enterprise device management; and customer experience management with voice and data services. The company is based in Edison, NJ (www.mformation.com).

“We found Mformation to be the clear market leader in the MDM software market, with a long history of offering scalable solutions to mobile operators and enterprises,” said Behdad Eghbali, Founding Partner at Clearlake. “The company has an exceptional leadership team that has successfully grown its customer base and brought several new products to the market. We look forward to partnering with management to aggressively scale the business and grow the global presence of this attractive new platform investment in the mobile software sector.”

Clearlake invests in special situations such as corporate divestitures, recapitalizations, buyouts, restructurings, turnarounds and minority equity investments. Sectors of interest include business services, communications and media, energy and power, healthcare, manufacturing, retail/consumer and technology. Clearlake was founded in 2006 and is headquartered in New York, NY (www.clearlakecapital.com).

“We are excited to work with Mformation and provide new capital to accelerate the company’s growth at this important time in its history,” said Prashant Mehrotra, Vice President at Clearlake. Mformation operates at the intersection of several key market trends — such as the proliferation of smart phones and intelligent mobile devices, Machine to Machine (M2M) wireless devices, and the advent of the ‘bring your own device’ phenomenon taking place in enterprises — which are driving the significant increase in demand for scalable mobile device management solutions. We believe the company is well-positioned to address this mission critical need for mobile operators and enterprises.”

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-24-12

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