Audax Invests in Government Data Manager

Audax Private Equity has acquired Kofile, a provider of document capture and management services to government agencies.

Kofile’s services include paper document restoration and preservation; physical and digital document access control for employees and citizens; paper document conversion to digital; digital document enhancement; and indexing (creating a database of information allowing users to search for and find required documents); cloud services; and information security. Kofile, with about 400 employees, was founded in 2009 by William “Sonny” Oates and is headquartered in Dallas.

According to the company, it is the largest provider of information management and access services to government agencies in the US. More than 50 percent of counties with over one million residents, including 75 percent of the country’s fastest-growing counties, are customers of Kofile.

“In Audax, we believe we have found the perfect investment partner to propel our future growth,” said Michael Crosno, CEO of Kofile. “Their interest in the public sector market, coupled with their experience and customer focus, has us very excited about the opportunities this partnership can bring to Kofile’s customer-centered commitment.”

“We are impressed by the business that Michael and his team have built over the years and are excited to invest behind them for the company’s next stage of growth,” said Tim Mack, a managing director at Audax. “We believe Kofile is well-positioned to continue expanding its high-quality suite of products and services for the public sector.”

Audax invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure, and building materials.

“Kofile’s reputation for quality and customer service is a testament to the company’s culture,” said Young Lee, a managing director at Audax. “We look forward to helping accelerate the growth of Kofile’s brand and product portfolio across a national footprint.”

Software-focused investment bank Shea & Company was the financial advisor to Kofile on this transaction. “The Shea & Company team exceeded our expectations at every step of the process,” said Mr. Crosno. “We partnered with Shea & Company because we view them as the leading experts in government software. This industry expertise, coupled with deep buyer relationships, excellent process execution, and their team’s dedication to our transaction helped us achieve an outcome that we are thrilled with, and best positions Kofile for future growth.”

Audax is currently investing out of its $3.5 billion sixth private equity fund. The firm has offices in Boston, New York, and San Francisco.

© 2020 Private Equity Professional | February 7, 2020

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