New Mountain Capital and Endicott Capital have acquired 3E, an environmental health and safety data and software provider, from Verisk.
Carlsbad, California-based 3E is a provider of data and software used for compliance, workplace and product safety. The company has more than 5,000 customers worldwide, including nine of the top 10 chemical manufacturers, eight of the top 10 retailers and seven of the top 10 pharmaceutical companies. 3E is headquartered in Carlsbad, California with additional offices in Maryland, Ohio, Denmark, Canada and Japan.
“We are excited about our new partnership with New Mountain and Endicott,” said 3E CEO Edmund Webecke. “The firms bring an excellent track record of scaling data and information services businesses and will add tremendous value to 3E. Backed by the combined expertise of our new partners, we look forward to accelerating our growth initiatives to better serve our customers and partners.”
New Mountain, who will serve as the control investor in this transaction, is an industry generalist and invests between $100 million and $500 million per transaction in companies with enterprise values typically between $100 million and $1 billion. The firm, founded in 2000 and headquartered in New York City, manages over $35 billion in aggregate assets in private equity, credit, net lease real estate and public equity funds.
In January 2021, New Mountain closed its newest flagship fund, New Mountain Partners VI LP, with $9.6 billion of capital, and the firm’s first non-control private equity fund, Strategic Equity Fund I LP, with $640 million of capital.
“3E has a long history of innovation that has resulted in the development of differentiated and mission-critical software, data, and services for its clients,” said Pete Masucci, a managing director at New Mountain. “We believe 3E is positioned to benefit from favorable macro trends as companies strive to keep up with continuously evolving global regulations, provide a safer working environment for their employees, and focus on meeting their sustainability goals. In partnership with 3E leadership and Endicott, we look forward to investing significantly in product innovation, market expansion, and strategic acquisitions to further expand 3E’s market-leading position.”
New York City-based Endicott Capital is a subsidiary of investment firm Endicott Group and invests exclusively in technology-enabled B2B information services companies operating in the lower middle market. Founded in 1996 as Endicott Growth Equity Partners, the firm is led by Co-Founders and Partners Wayne Goldstein and Rob Usdan and Partners Will Pappas and Mike Chinn.
“Our mission is to partner with leading companies like 3E that help their clients solve their biggest challenges via must-have data embedded in critical workflows,” said Mr. Chinn. “We are excited to work with the 3E management team and New Mountain to support the company’s next phase of growth.”
Jersey City, New Jersey-based Verisk provides data analytics to customers in the insurance, financial services, energy and other specialized markets. The company was founded in 1971 as an insurance rating bureau and today has more than 9,000 employees and 115 offices in 33 countries.
Evercore was the financial advisor to New Mountain and Endicott on this transaction.
© 2022 Private Equity Professional | March 24, 2022
