Strattam Capital has made a $35 million majority investment in Intellect, a provider of compliance management software.
Intellect’s cloud-based, no-code, quality management (QMS) and environmental, health & safety (EH&S) software applications are used by mid-market and enterprise companies to comply with ISO, FDA, EPA and OSHA manufacturing standards and regulations. Intellect’s software provides its customers – typically active in the medical device, laboratory, and electronics sectors – with the ability to digitize and automate their internal compliance processes and improve compliance documentation and visibility for external auditors and regulators.
Intellect will use Strattam’s growth capital investment to expand its product, engineering, sales and marketing teams, with a specific focus on building additional vertical-specific domain expertise.
Los Angeles-headquartered Intellect was founded in 2000 by CEO Romeo Elias. “There is a significant opportunity in the QMS and EH&S marketplace, especially among mid-market companies who want to implement modern software to automate and ensure compliance, but don’t want to have to change their internal processes or rely on their IT departments to do so,” said Mr. Romeo. “With Strattam, we found a partner who shares this same vision. We were impressed with their approach in working with founders to develop a Five-Point Plan to set this vision into motion.”
“Rising regulations and hybrid work environments have left many companies scrambling to find solutions to meet their increasingly critical and complex compliance needs. We believe the flexibility of Intellect’s solution makes it a perfect fit for mid-market companies seeking to solve their compliance problems with modern and intuitive software,” said Neil Willis, a partner at Strattam. “We are very excited to be partnering with Romeo and the entire Intellect team to help them build on their impressive success to date and achieve their goal of becoming a clear category leader.”
Strattam invests in companies in the enterprise software and tech-enabled services sectors. The firm’s investments typically have enterprise values up to $100 million, revenues of $10 million to $30 million, and positive EBITDA. Strattam was founded in 2013 by Bob Morse and Adrian Polak and is headquartered in Austin, Texas.
Tree Line Capital Partners provided the debt financing to support Strattam’s investment in Intellect. The Tree Line transaction team was led by Partner Frank Cupido and Senior Associate Raj Muchhala.
Tree Line is an active provider of first-lien term loans, unitranche term loans, and equity co-investments to North America-based lower middle market companies that have EBITDA from $3 million to $30 million and transaction sizes up to $150 million. The Tree Line team has experience across multiple economic cycles – the firm has completed more than 150 transactions for acquisitions, recapitalizations, refinancings, and expansion projects – and has generated significant repeat investment opportunities from private equity sponsors.
Madison Park Group (MPG), a New York City-headquartered technology investment bank, was the financial advisor to Intellect on this transaction. MPG was founded in 2004 by Jonathan Adler and Mir Arif.
© 2022 Private Equity Professional | March 8, 2022
