Archives for December 3, 2013

Thoma Bravo Exits Digital Insight

by

Thoma Bravo has agreed to sell its portfolio company Digital Insight, a provider of digital banking capabilities to financial institutions, to NCR Corporation for $1.65 billion. Thoma Bravo formed Digital Insight in August 2013 to acquire Intuit Financial Services, a division of Intuit, for $1.025 billion. The sale of Digital Insight is expected to close during the first quarter of 2014.

“Thoma Bravo was able to establish Digital Insight as a standalone company following our acquisition from Intuit in August, while also offering Intuit a successful and efficient outcome,” said Thoma Bravo managing partner Orlando Bravo. “Digital Insight has attracted interest from NCR with its strong set of online and mobile banking products, rich client list, and accomplished employees.”

Digital Insight provides an integrated digital banking platform for 11 million users, widely recognized as one of the best in the market. Its mobile banking suite is the industry benchmark, with a 4.7+ app store rating and best in class user adoption of more than 4 million customers. Digital Insight was first founded in 1995 as Internet banking provider. The company was purchased by Intuit in February 2007 and was renamed Intuit Financial Services. Digital Insight is headquartered in Menlo Park (www.digitalinsight.com).

“Thoma Bravo was an experienced and trusted partner during our carve-out from Intuit, and I appreciate the effort from our team at Digital Insight,” said Digital Insight CEO John O’Malley. “Thoma Bravo gave us the tools and knowledge to succeed as a standalone company and we look forward to our next stage with NCR.”

Thoma Bravo provides equity and strategic support to management teams building growing companies. The firm originated the concept of industry consolidation investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth. Thoma Bravo currently manages approximately $4 billion of equity capital. The firm was founded in 1981 and has offices in Chicago and San Francisco (www.thomabravo.com).

“It was a pleasure to work with the leadership team at Digital Insight, and we wish them the best as part of NCR’s Financial Services line of business,” said Thoma Bravo managing partner Holden Spaht.

NCR Corporation (formerly National Cash Register) is a computer hardware and electronics company that provides products and services that enable businesses to connect, interact and transact with their customers. Its main products are self-service kiosks, point-of-sale terminals, automated teller machines, check processing systems, barcode scanners, and business consumables. NCR was founded in 1884 and is based in Atlanta (www.ncr.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13

Grey Mountain Partners Acquires ATS Systems

by

Grey Mountain Partners has acquired ATS Workholding, a provider of machine tool accessories. John Boland, President and Chief Executive Officer of ATS Workholding, will continue to lead the company.

ATS Workholding (dba ATS Systems) provides CNC machine tool accessories for use in a variety of end markets including oil and gas, aerospace, and construction. The company is headquartered in Rancho Santa Margarita, CA (www.ats-s.com).

“We look forward to having Grey Mountain as partners,” said Mr. Boland. “Their financial backing and operational support will be instrumental as we continue to grow the company and better serve our customers.”

Grey Mountain Partners invests up to $75 million in control acquisitions of companies with enterprise values between $30 million and $150 million. Sectors of interest include aerospace & defense, building products & materials, business process outsourcing, diversified manufacturing, energy & power, financial services, food & beverage, healthcare services & technology, industrial services, packaging, professional services, specialty chemicals, technology, transportation & logistics, wholesale and distribution. Grey Mountain was founded in 2003 by Managing Partners Rob Wright and Jeff Kuo and is based in Boulder with an additional office in Minneapolis (www.greymountain.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13

Centre Partners Acquires Captain D’s

by

Centre Partners has completed the acquisition of Captain D’s, a fast-casual restaurant chain, from Sun Capital Partners which acquired the company in May 2010. Captain D’s senior management team will own a significant stake in the business and continue to serve in their current roles.

Captain D’s operates a national chain of 521 seafood-themed fast-casual restaurants in 26 states. The restaurants offer grilled fish, as well as shrimp, chicken, shrimp & beef kabobs, hushpuppies, desserts and freshly brewed, southern style sweet tea. The company was founded in 1973 and is headquartered in Nashville (www.captainds.com).

“We’re excited to invest in Captain D’s and to partner with CEO Phil Greifeld and his executive team. Captain D’s differentiated menu of high quality seafood products at a value price point clearly distinguishes it from its competitors and the business is managed exceptionally well. We look forward to supporting Phil and the team, who have laid the foundation for very attractive growth in the coming years,” said Bruce Pollack, Managing Partner of Centre Partners.

Centre Partners invests from $20 million to $60 million in North American based middle market companies that have $50 million to $500 million in revenue and $10 million to $60 million in EBITDA. Sectors of interest include healthcare; industrial products and services; financial services; energy; media; restaurants; retail; and aviation services. The firm is currently investing through its fifth fund with $650 million of committed capital. Centre Partners was founded in 1986 and has offices in New York and Los Angeles (www.centrepartners.com).

“We are excited to have Centre as our partner as we embark upon a path of accelerated growth. We have succeeded in driving same store growth for the last 28 periods, while improving our customer experience. Our customers have responded positively to recent improvements in Captain D’s menu and we’re even more excited by new initiatives that are just now being introduced,” said Mr. Greifeld.

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13

Riordan Lewis & Haden Exits CyberCoders

by

Riordan Lewis & Haden has agreed to sell its portfolio company CyberCoders, an IT recruiting firm, to On Assignment, Inc. Riordan Lewis & Haden first invested in CyberCoders in 2009.

CyberCoders is a national recruiting firm that specializes in permanent placement of mid to senior-level professionals with experience in IT, engineering, healthcare and life sciences. The company is based in Irvine, CA (www.cybercoders.com).

During RLH’s term of ownership the revenue of CyberCoders has increased five-fold and EBITDA even more rapidly, entirely through organic growth. Since RLH’s investment, CyberCoders has been recognized numerous times as among the “best places to work” and the company’s founder and CEO, Heidi Golledge, was selected as an Ernst & Young 2013 Entrepreneur of the Year.

On Assignment (NYSE: ASGN) is a provider of in-demand, skilled professionals for temporary, contract-to-hire, and direct hire assignments in the IT, healthcare, and life sciences sectors. The company is based in Calabasas CA (www.onassignment.com).

Riordan, Lewis & Haden invests in high growth, lower middle market companies that have revenues from $20 million to $200 million. Sectors of interest include business services, healthcare, and government services. The firm currently manages over $600 million of assets and is actively seeking new portfolio companies. Riordan, Lewis & Haden is based in Los Angeles (www.rlhequity.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13

Southport Lane Acquires National Automotive Insurance

by

Imperial Management Corporation, a portfolio company of Southport Lane, has completed its previously announced acquisition of National Automotive Insurance Company.

National Automotive Insurance Company (NAIC) specializes in providing personal auto insurance exclusively in Louisiana and predominantly within the New Orleans and Baton Rouge metropolitan areas. The company is headquartered near New Orleans in Metairie, LA (www.nationalautomotiveinsurance.net).

The acquisition of NAIC complements IMC’s strategy for organic growth and expansion throughout the Southern United States. The acquisition of NAIC will nearly double Imperial’s auto premium writings in Louisiana. At closing, National Automotive Insurance Company will operate as a subsidiary of IMC, joining Imperial Fire & Casualty Insurance Company, ABC Insurance Agencies and RAC Insurance Partners.

Imperial Management Corporation is organized as a holding company with almost all of its operations being conducted by subsidiaries. Imperial Management’s largest subsidiary, Imperial Fire and Casualty, is rated B+ by A.M. Best and is a provider of insurance products including personal auto, personal property, and flood policies. The company writes policies in Arkansas, Florida, Louisiana, Oklahoma and Texas, and is licensed in the states of Alabama, Georgia, Indiana, Kansas, Kentucky, Mississippi, Missouri, Nevada, South Carolina, and West Virginia. Imperial Management Corporation is also parent to wholly owned subsidiaries ABC Insurance Agencies and RAC Insurance Partners. Imperial Management is headquartered in Opelousas, LA (www.imperialfire.com).

Southport Lane is a private equity firm founded in 2010 with investments in insurance and reinsurance. Among the firm’s portfolio investments is Southport Re, its platform for Alternative Risk Transfer activities. The firm is headquartered in New York and has total capital commitments in excess of $1 billion (www.southportlane.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13

Paper & Packaging Pro Joins Peakstone

by

James Berkenfield has joined The Peakstone Group as a Senior Advisor focusing on paper and packaging companies. He will partner with Nick Clementi, Managing Director, who leads Peakstone’s paper and packaging client coverage. Mr. Berkenfield joins Peakstone following the sale of his disposable paper plate company, Winterfield LLC to Huhtamaki, Inc. in late 2012.

Mr. Berkenfield is an accomplished entrepreneur and operating executive in the paper and plastics industry, starting and selling three companies over a 40 year career including Winterfield, Heartland Manufacturing, and Akron Graphic Supply Company. His operating experience in sales and marketing, finance, supply chain, operations, and real estate as well as his experience in selling his own businesses to strategic buyers, enables him to advise business owners encountering similar operational and strategic issues with their businesses.

Mr. Berkenfield earned a Bachelor of Science degree in Business Administration from The University of Denver and he also studied polymer chemistry at Loyola University in Chicago.

The Peakstone Group is an investment bank focused on middle market and family-owned businesses, with a targeted transaction size of $10 to $100 million. Peakstone provides investment banking advisory services and also makes select private equity investments through its affiliate, PAG Capital. The firm is based in Chicago (www.peakstonegroup.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-3-13