ExamSoft, a provider of computer-based testing services and a portfolio company of Teakwood Capital, has been acquired by Spectrum Equity. Daniel Muzquiz, Chief Executive Officer, and David Schnabel, President, as well as the rest of the senior management team of ExamSoft will continue to lead the company. Teakwood acquired ExamSoft in June 2010.
ExamSoft is a provider of computer-based testing software to academic institutions and professional certification entities. ExamSoft is used by more than 550 clients, including an array of higher education institutions and 43 of the 50 US state bar examiners. The company has offices in Dallas (headquarters) and Boca Raton (www.examsoft.com).
Teakwood Capital invests equity capital primarily in technology enabled business-to-business companies with revenues of less than $25 million and EBITDAs from $500,000 to $3 million. The firm focuses on management buyouts as well as control growth equity investments. Teakwood Capital was founded in 2005 and is based in Dallas (www.teakwoodcapital.com).
“Teakwood is proud of this investment and what ExamSoft’s talented management team has achieved. The team briskly grew revenues by expanding within its core markets while also developing new products to target large, adjacent markets,” said Shawn Kelly, Managing Director at Teakwood Capital. “ExamSoft is a great example of the operational and strategic value Teakwood delivers by working closely with a portfolio company team to jumpstart growth and achieve its true potential.”
The buyer of ExamSoft, Spectrum Equity, invests in growth companies in the information industry with particular interest in internet and digital media; communications, media and entertainment; and software and information. Spectrum Equity has raised $4.7 billion in capital across six funds. The firm was founded in 1994 and has offices in Boston and Menlo Park (www.spectrumequity.com).
“As technology and software continue to impact education, and as curricular design, testing and accreditation continue to shift in response to these changes, we believe market demand for assessment management solutions will continue to grow,” said Steve LeSieur, Principal of Spectrum Equity. “We view ExamSoft as a growth platform with exceptional management and technology that should scale considerably over the coming years as the company expands its portfolio of products and services offered to clients. We feel very fortunate to be partnered with Daniel, David and the entire ExamSoft team.”
Mid-market investment bank MHT MidSpan (www.mhtmidspan.com) acted as the exclusive financial advisor to ExamSoft in the transaction.
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-8-14