SFW Capital Partners has sold DaySmart Software to LLR Partners and Parthenon Capital.
DaySmart is a provider of business management software, including integrated payments functionality, for consumer-facing small-and-medium-sized businesses. The company’s desktop and cloud-based apps – including Salon Iris, Orchid, 123Pet and Inkbook – are purpose-built for the salon, spa, pet and tattoo industries.DaySmart was founded in 1999 by Christianna and Mark Jackson and is headquartered in Ann Arbor, MI.
SFW acquired DaySmart, in partnership with the company’s founders, in September 2016. In a planned transition, SFW brought in Jeff Dickerson, an experienced software industry CEO, to lead DaySmart and supported the company’s growth initiatives during its ownership period. These efforts included re-architecting DaySmart’s legacy software and upgrading the company’s legacy business systems. DaySmart also expanded its product portfolio and made investments in sales and marketing, doubling its sales team and establishing a best-in-class marketing function.
SFW also completed an add-on for DaySmart with the January 2019 buy of PupKeep, a pet services cloud-based software company. This add-on allowed DaySmart to expand its pet services software to include daycare, boarding, kenneling and training functionality.
“DaySmart’s deep vertical expertise and potential for organic growth represented a strong fit with SFW’s focus on supporting the growth and development of leading providers of high-value integrated software and information platforms,” said Omair Sarwar, a partner at SFW. “We are grateful for the opportunity to have worked with Jeff and his team and to have supported DaySmart through a period of such rapid transformation and growth.”
SFW invests from $15 million to $150 million of equity in information, software, industrial and healthcare technology companies that have revenues of $10 million to $500 million. The firm is headquartered in Rye, NY.
“We are incredibly proud of the transformational growth we’ve achieved at DaySmart in partnership with SFW,” said Mr. Dickerson. “SFW’s unique sector-focused experience and business building expertise proved to be incredibly valuable to DaySmart as we made substantial investments to pursue our strategy. We look forward to working with our new partners at LLR and Parthenon Capital to build upon our achievements and drive the next phase of growth for our employees, customers, and business partners.”
LLR invests from $15 million to $100 million in companies that have up to $100 million in annual revenue and are active in the education, financial, healthcare, security and software sectors. The firm will invest in minority or majority equity positions through growth capital, recapitalizations, and buyout transactions. In June 2018, Philadelphia-based LLR held a final closing of its latest fund, LLR Equity Partners V LP, at $1.2 billion.
Parthenon invests in companies with enterprise values of $35 million to $500 million that are active in healthcare services, financial services, and business services. The firm, founded in 1998, has offices in Boston and San Francisco.
© 2019 Private Equity Professional | October 17, 2019