Deltek, a provider of enterprise software and information solutions for professional services firms and government contractors, today announced that it has entered into an agreement to be acquired by Thoma Bravo in an all-cash transaction valued at approximately $1.1 billion. Deltek’s largest shareholder is New Mountain Capital.
Deltek’s stockholders will receive $13 in cash for each share of Deltek stock when the transaction closes. The offer price also represents a 14.6x multiple of enterprise value to Deltek’s trailing twelve months Adjusted EBITDA as of June 30, 2012.
Deltek (NASDAQ: PROJ) is a provider of enterprise software and information solutions for professional services firms and government contractors. More than 15,000 organizations and 2 million users in over 80 countries around the world use Deltek products. The company is based in Herndon, VA (www.deltek.com).
“Over the past seven years, we have successfully executed our long term plans for Deltek to enter new markets, grow internationally, and expand our industry-leading solutions for project-based companies,” said Kevin Parker, Deltek’s president, CEO and Chairman of the Board. “Throughout our journey, New Mountain Capital gave us outstanding support and was instrumental in building the Deltek of today. We’re very excited about the opportunity to continue Deltek’s successful journey in partnership with Thoma Bravo.”
Thoma Bravo provides equity and strategic support to management teams building growing companies. The firm originated the concept of industry consolidation investing, which seeks to create value through the strategic use of acquisitions to accelerate business growth. Thoma Bravo currently manages approximately $4 billion of equity capital. The firm was founded in 1981 and has offices in Chicago, IL and San Francisco, CA (www.thomabravo.com).
“We have a long history of investing in highly respected and industry-leading software companies,” said Orlando Bravo, managing partner at Thoma Bravo. “In Deltek, we found a vertical market leader with unmatched solutions, a loyal and broad customer base, passionate employees and significant organic and acquisition-led growth opportunities, and the firm is confident in our approach and experienced in leveraging such assets to drive growth.”
New Mountain Capital invests in growth equity transactions, leveraged acquisitions and management buyouts. The firm currently manages private and public equity funds with approximately $9 billion in aggregate capital commitments. New Mountain is based in New York, NY (www.newmountaincapital.com).
“Working with Kevin Parker and the entire Deltek team to build the company into a global market leader has been a true success story for New Mountain Capital and highlights our focus on building great businesses,” said Alok Singh, lead director of Deltek’s Board of Directors, and a managing director at New Mountain Capital. “We are very proud of the accomplishments that Deltek has achieved during the time we held a majority share in the company. Since we first invested in Deltek, the company has more than doubled in revenue, added more than 4,000 customers, built a global presence with customers in over 80 countries, and is the enterprise solutions provider of choice to some of the world’s most prestigious Global 2000 companies.”
Greenhill & Co. acted as lead advisor and facilitator throughout the process, and Fried, Frank, Harris, Shriver & Jacobson served as a legal advisor to Deltek. Credit Suisse Group also acted as an advisor.
Jefferies & Company served as lead financial advisor to Thoma Bravo, and Jefferies Finance and RBC Capital Markets provided financing commitments to the firm. Kirkland & Ellis served as legal advisor to Thoma Bravo.
© 2012 PEPD • Private Equity’s Leading News Magazine • 8-27-12