Investment bank Houlihan Lokey has acquired ArchPoint Partners, a San Francisco-based investment banking firm that provides mergers and acquisitions and private capital raising advisory services to clients in the technology sector. The acquisition closed on March 7, 2014.
ArchPoint co-founders and Managing Directors John Cooper and Rob Louv will jointly lead Houlihan Lokey’s Technology Group, reporting to Scott Adelson and Bob Hotz, Co-Heads of Corporate Finance. Susan Blanco and Dan Williams, ArchPoint’s other co-founders, will also serve as Managing Directors in the Technology Group.
“Since forming ArchPoint, we have worked diligently to build on our excellent track record with each client engagement through achieving superior outcomes, and we are eager to continue that momentum with Houlihan Lokey,” said ArchPoint co-founder and Managing Director John Cooper.
Founded in 2009, ArchPoint focuses exclusively on the technology sector. ArchPoint’s founding team has combined prior experience of more than 400 completed transactions totaling $200 billion and is considered a leader in SaaS business advisory work, having completed more than 50 transactions for SaaS companies. ArchPoint’s founders previously worked together in senior corporate and banking positions at Microsoft and JPMorgan Chase, among others.
“The ubiquity of technology in every facet of society is undeniable,” said Scott Adelson, Co-Head of Corporate Finance at Houlihan Lokey. “By joining Houlihan Lokey, ArchPoint’s banking team will be able to forge direct relationships with end-users of technology in every industry in which we do business; similarly, these end-users will now have access to unmatched technology expertise, particularly in the software space. This acquisition is a fantastic addition to the arsenal of intellectual capital we provide our clients, and we’re delighted that the ArchPoint team is joining Houlihan Lokey.”
The acquisition comes at a particularly opportune time given recent M&A activity in the sector. In 2013, US technology M&A volume totaled $129 billion, the highest in more than a decade; year to date, 2014 volume through February was already more than $43 billion, according to Thomson Reuters data. Other factors, including continued private equity interest in the sector and the widespread belief that the global economy is improving, support continued deal activity in the sector.
“Joining a firm with Houlihan Lokey’s reputation, global reach, and client relationships, particularly among financial sponsors, is an extremely exciting opportunity, and we look forward to building a first-class Technology Group here,” said Rob Louv, ArchPoint co-founder and Managing Director.
Both Houlihan Lokey and ArchPoint advised themselves on the transaction. Manatt, Phelps & Phillips, LLP served as legal counsel to Houlihan Lokey and Holland & Knight was legal counsel to ArchPoint.
Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and Asia (www.hl.com).
ArchPoint Partners is a San Francisco-based investment banking firm that provides mergers and acquisitions and private capital raising advisory services to clients in the technology sector (www.archpoint.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-12-14
