September 18, 2015
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Archives for September 18, 2015

Vista Sells Mitratech to TA

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mitratech nf1Mitratech, a provider of enterprise legal management (ELM) software and services to corporate legal departments and a portfolio company of Vista Equity Partners, has been acquired by TA Associates.

Mitratech’s software and services provides matter management; spend management; e-billing; legal hold; contracts management; entity management; and governance, risk, and compliance. The company has more than 750 customers and 100,000 users, including 7 of the Fortune 10, 52% of the Fortune 50, and almost 40% of the Fortune 500. Additionally, over 11,000 law firms, including 100% of the Am Law 200 and 99 of the Global 100 law firms, collaborate with their corporate clients through Mitratech’s e-billing product offerings. The company was founded in 1987 and is headquartered in Austin, TX (www.mitratech.com).

Vista acquired Mitratech in October 2011 and during the course of ownership completed three add-on acquisitions: CaseTrack, a provider of enterprise legal management software to corporate legal departments (August 2015); Bridgeway Software, a provider of enterprise legal management software to corporate and government legal departments (July 2015); and LT Online, a provider of legal management software for mid-sized legal departments (January 2014).  As a result of these buys and through organic growth, Mitratech’s client base has grown by almost 500% and revenue has tripled. Over the same period, client satisfaction has increased every year, and client retention has stayed consistently above 95%.

Vista Equity Partners has more than $14 billion in committed capital and makes equity investments in enterprise software businesses and technology-enabled services companies. The firm was founded in 2000 and has over 50 investment professionals operating out of San Francisco, Chicago and Austin (www.vistaequitypartners.com).

jasopn parkman nf1“Our four-year partnership with Vista allowed us to transform our company and to execute on a strategy to deliver products that are powerful and comprehensive, but easier to adopt and less expensive for clients to implement and upgrade – an option never before offered to legal departments,” said Jason Parkman, Mitratech CEO. “Our new partnership with TA Associates allows us to stay private, nimble, and focused on our current strategy while leveraging TA’s global footprint and growth focus to deliver even more innovation and value to our clients.”

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 450 companies globally, including more than 100 software companies, and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

Hythem el nf3“We’ve been tracking the evolution of the entire legal software market for years and the strategic expansion of the general counsel’s role in particular,” said Hythem El-Nazer, a Director at TA Associates. “Mitratech has emerged as the market leader in providing software solutions to general counsel and corporate legal departments, and we are excited to further accelerate their success and growth in this rapidly advancing legal landscape by partnering with a management team that has proven its ability to operate a world-class organization.”

Chicago-based investment bank William Blair (www.williamblair.com) is the exclusive financial advisor to Vista and Mitratech.  Marks Baughan – an investment bank focused on growth companies active in software, technology-enabled services, and data – is serving as the financial advisor to TA Associates. Marks Baughan has offices outside Philadelphia in Conshohocken, PA and in London, UK (www.marksbaughan.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-18-15

Arlington Capital Acquires Ontario Systems

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ontario systems nf1Arlington Capital Partners has acquired Ontario Systems, a provider of revenue cycle management software and services.

Ontario Systems (OS) is a provider of revenue cycle management (RCM) software and services to healthcare providers, outsourced RCM and accounts receivable management (ARM) firms, and government clients.  Ontario Systems’ customers include three of the top six health systems in the US, and nine of the ten largest RCM and ARM firms, with approximately 55,000 licensed users across more than 500 locations. Ontario Systems is led by Ron Fauquher, President and CEO, and is headquartered northeast of Indianapolis in Muncie, IN (www.ontariosystems.com).

matt altman nf4“Ontario Systems’ software serves as the primary workflow engine for its customers’ mission-critical RCM and ARM activities,” said Matt Altman, a Partner at Arlington Capital.  “With its dual focus on both performance and compliance, OS products have led the industry and driven strong growth at the company. We look forward to partnering with the Ontario Systems team to support the company’s Growth in the healthcare RCM, ARM and government verticals.”

Arlington Capital Partners has $1.5 billion of committed capital and invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology, aerospace & defense, healthcare, and business services & software.  The firm is based in Chevy Chase, MD (www.arlingtoncap.com).

Malcolm Little nf1“Ontario Systems’ market strength has been built upon a long history of providing innovative, compliant solutions to its customers,” said Malcolm Little, a Vice President at Arlington Capital.  “As an established industry leader, OS is well positioned to continue to achieve above market growth.”

“We are tremendously excited to be partnering with Arlington Capital as we enter the next phase of our growth,” said Ron Fauquher, Ontario’s Systems’ President and CEO. “With the relationships, strategic focus and significant capital that Arlington brings, we look forward to continuing to exceed our customers’ expectations by further enhancing our market-leading software and solutions.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-18-15

RLJ Equity Partners Acquires WJ Weiser

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weiser nf1Naylor Association Solutions, a portfolio company of RLJ Equity Partners, has added on with the acquisition of WJ Weiser, a provider of association management services.

“We are proud to be joining a company with such depth and experience in the association marketplace,” said Wendy Weiser, President and CEO of WJ Weiser.  “I’m really excited to introduce the Naylor suite of products and services to our customers, and impressed with the Naylor and RLJ vision for growing the business.”

WJ Weiser is a provider of association management company services to medical and health sciences related organizations worldwide.  The company’s services include everything from full outsourced management of associations to specific services such as accounting and financial management, branch and chapter management, marketing and public relations, education and professional development, and information and technology services. WJ Weiser is based in the Chicago suburb of Schaumburg, IL (www.wjweiser.com).

RLJ Equity Partners invests from $15 million to $30 million in companies valued between $50 million and $250 million. Target companies will have operating profits greater than $7 million and operating margins greater than 10%.  Sectors of interest include aerospace & defense; auto & transportation; business services; consumer retail; general industrial; and media & telecom.  RLJ Equity Partners was founded in 2006 by Robert Johnson in partnership with The Carlyle Group. The firm is headquartered in Bethesda, MD (www.rljequitypartners.com).

Naylor Association Solutions, acquired by RLJ in December 2013, is a provider of outsourced communications, event management, online learning, career services, association management software, and advertising, exhibit and sponsorship sales. The company has approximately 1,800 association customers in the US and Canada.  The company generates the majority of its revenue from advertising, exhibit and sponsorship sales in digital, print, video and event media, and distributes a percentage of revenue to its association customers via revenue sharing agreements.  Naylor is headquartered in Gainesville, FL (www.naylor.com).

Mergers and acquisitions advisor Corporate Finance Associates Chicago (www.cfachicago.com) was the exclusive advisor to WJ Weiser on this transaction.  Anthony Contaldo, Director, led the transaction.  “The primary goal of our process was to find a partner for WJ Weiser that would allow the company to stay on its current growth trajectory,” said Mr. Contaldo. “Naylor’s team, resources, and industry experience made them a perfect partner to help take the company to the next level.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-18-15

Ex-FBI CIO Joins Z Capital

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Z capital nfZ Capital Group has named Jerome “Jerry” Pender as a new Operating Partner.  Mr. Pender has over 30 years of experience in technology and will be advising the firm on digital and cybersecurity matters. Additionally, he will be working with Z Capital’s portfolio companies on information technology analysis and support as well as performing due diligence on new investments.

“I am thrilled to welcome Jerry to the Z Capital team. He brings extensive experience in technology, cybersecurity, financial services and management, and we are confident that his expertise will provide significant value to our firm and portfolio companies,” said James Zenni, President and Chief Executive Officer of Z Capital. “In today’s business environment, as we continue to look for innovative ways to support the growth of our portfolio and deliver differentiated returns to our investors, it is a top priority to ensure that robust security protections and diligence procedures are in place.”

pender nf1Prior to joining Z Capital, Mr. Pender served as Chief Information Officer and Executive Assistant Director of the Federal Bureau of Investigation (FBI) since September 2012.  In this role, he was responsible for all aspects of IT in the FBI globally and managed a budget of $1.2 billion. From 2003 to 2012, he was the Deputy Assistant Director and Chief Information Officer for the Criminal Justice Information Services Division of the FBI which provided cloud services to over 1,000,000 federal, state and local law enforcement officers in 18,000 agencies throughout the country as well as over 100,000 retail sales locations.

Mr. Pender started his career in the United States Air Force where he rose to the rank of Captain. He also spent twelve years at UBS where he served in various roles, most recently as Executive Director and Global Head of Fixed Income, Treasury Products and Global Service Delivery.  Mr. Pender has a BS in Computer Science from the United States Air Force Academy and an MS in Computer Science from Johns Hopkins.

“This is an exciting opportunity for me to join the Z Capital team and I look forward to working with the firm’s portfolio companies and their management teams,” said Mr. Pender. “I am eager to put my 30 years of experience in technology to work to support Z Capital in developing enhanced IT infrastructure and cybersecurity measures and identify innovative trends in technology to best position the firm for the future.”

Z Capital makes control investments in middle-market distressed companies, operational turnarounds and special situations. The firm targets companies with an enterprise value of less than $1 billion or EBITDA of less than $100 million. Sectors of interest include consumer products, steel and steel processors, agricultural, gaming, leisure, real estate, manufacturing, specialty services and automotive.  The firm has approximately $2.3 billion of capital under management.  Z Capital is based in the Chicago suburb of Lake Forest and has additional offices in New York and Zurich (www.zcap.net).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-18-15

Emerson Electric Exec Joins Irving Place

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irving place nf3Irving Place Capital has added Walter Galvin to its team as a Senior Advisor. Mr. Galvin will work with the principals of Irving Place to execute value creation strategies at existing portfolio companies as well as pursue new investments in the industrial and packaging sectors.  Mr. Galvin is an experience operating executive having spent 40 years with Emerson Electric.

Mr. Galvin held a number of senior roles during his time at Emerson, including Chief Financial Officer, Vice Chairman and finally as a Director of the Board from 2000 to 2013. During his time at the company, revenues increased from less than $1 billion to nearly $25 billion. Prior to joining Emerson, Mr. Galvin spent three years in the US Navy as a Lieutenant. Mr. Galvin currently serves on the Board of Directors of Ameren Corporation, Aegion Corporation and the US Chamber of Commerce.

Walter Galvin nf1“I have had the opportunity to develop a relationship with the principals at Irving Place Capital over the past several years and am delighted to be joining the firm,” said Mr. Galvin. “I look forward to working alongside the managers at our portfolio companies to help them deliver outstanding results.”

“We’re thrilled to welcome Walt to our team,” said Keith Zadourian, Partner at Irving Place Capital. “Walt brings a wealth of experience in building high-performance cultures and creating equity value from his long and distinguished career at Emerson. He will be a terrific partner to our management teams and his insights will facilitate exceptional performance at our companies.”

Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities.  Since its formation in 1997, Irving Place Capital has been an investor in 60 portfolio companies, primarily in the industrial, packaging, consumer and retail sectors. The firm manages over $4 billion, including its current $2.7 billion institutional fund. Irving Place Capital is based in New York (www.irvingplacecapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-18-15

New Heights Hires Dynamic Duo

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new heights nf1New Heights Research has added two members to its team with the hirings of Christina Woo as Partner and Lauren Townsend as Principal.  Both women come to New Heights with backgrounds in mergers and acquisitions due diligence and will enable New Heights to expand its geographic reach and client services.

Christina Woo nf1Prior to joining New Heights, Ms. Woo worked in strategy consulting and equity research at Bain & Company, The Boston Consulting Group, and Morgan Stanley.  Ms. Woo will be based in the San Francisco Bay Area and will lead recruiting efforts to add industry experts – particularly in the fields of technology and health care – to the firm’s network. She earned her MBA degree from Harvard and her BA from UC Berkeley.

New Heights Research conducts due diligence related research for clients in private equity, as well as other market sectors. The firm utilizes a large network of industry experts and consulting professionals to support its project work.  New Heights was founded in 2005 by Bert Smyers, its Managing Partner, and is headquartered in Cleveland (www.nh-r.com).

Lauren Townsend nf1Ms. Townsend previously spent nearly 6 years as a business development officer and as an associate at Incline Equity Partners, a middle-market private equity firm based in Pittsburgh.  She has a BS degree from Georgetown University.

“I’m extremely pleased to welcome Christina and Lauren to the New Heights team. This dynamic duo brings deep experience, talent, and energy to the firm and will help us serve existing and new clients like never before,” said Mr. Smyers. “Coming on the heels of our move to larger office space in downtown Cleveland, the addition of Christina and Lauren is another exciting step in the evolution of our market due diligence capabilities.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 9-18-15

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