Lightyear Closes Second 2021 Exit
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Lightyear Closes Second 2021 Exit

Sale of Datalot follows April exit from Therapy Brands, an Alabama-based provider of practice management services

Through its tech platform and call center operations, Datalot provides "warm leads" to auto, home, life, and health insurance carriers and agents

SOURCE: Datalot

Lightyear Capital has sold Datalot, a provider of mobile and web marketing services to the insurance industry, to Centerfield, a portfolio company of Platinum Equity since December 2019. Lightyear acquired Datalot in 2017.

Through its technology platform and call center operations, Datalot provides auto, home, life, and health insurance carriers and agents with qualified consumer inquiries – “warm leads” – that improves sales conversion rates and lowers new customer acquisition costs. Datalot’s customers include more than 40 insurance carriers – including several Fortune 100 insurance carriers – and thousands of insurance agents. Brooklyn, New York-based Datalot was founded in 2009 by Josh Reznick and has additional offices in Florida and Colorado.

“The entire Datalot team did an outstanding job executing on the plan we laid out with Lightyear in 2017, and Lightyear was a great partner in helping us not just maintain but accelerate growth,” said Mr. Reznick. “We are very excited about our new partnership with Centerfield as we align on compelling growth opportunities and initiatives for Datalot’s next chapter.”

“We are very pleased with the successful outcome of our ownership stake in Datalot,” said Mark Vassallo, a managing partner at Lightyear. “Working with Josh and the entire Datalot team over the last few years has led to strong growth, significantly improving performance with outstanding revenue and EBITDA expansion. We wish them continued success.”

Lightyear Capital was founded in New York City in 2000 and makes control investments in North American middle-market companies in the financial services industry. The sale of Datalot marks the second exit by Lightyear this year following its April exit from Therapy Brands, an Alabama-based provider of practice management services to behavioral and mental health providers.

Los Angeles-headquartered Centerfield, the buyer of Datalot, provides online marketing and sales technology, automated call routing and customized scripting to the residential services, telecommunications, business services, and education sectors to develop new customers, increase revenues and improve customer retention rates.

Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners V LP, a $10 billion buyout fund, and Platinum Equity Small Cap Fund LP, a $1.5 billion buyout fund focused on the lower middle market. Platinum was formed in 1995 by Tom Gores and is headquartered in Beverly Hills.

Canaccord Genuity, a Toronto-headquartered investment bank, was the financial advisor to Datalot on this transaction.

© 2021 Private Equity Professional | August 30, 2021

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