Genstar Capital has made an investment in PDI, a provider of enterprise resource planning software. TA Associates, which invested in PDI in 2016, will continue as a significant shareholder in the company.
PDI provides enterprise software that is used for retail, wholesale and logistics automation, financial reporting, workforce management, and end-to-end fuel supply chain management. PDI’s customers -which number more than 1,200 in 50 countries – include single site or multi-site convenience store retailers, wholesale petroleum marketers and logistics carriers. The company is based northeast of Austin in Temple, TX (www.profdata.com).
“Genstar is an experienced software investor with a long-term perspective that will help PDI continue to deliver for our customers, innovate our software portfolio, provide world-class global service, and focus on new untapped markets,” said Jimmy Frangis, PDI’s Chief Executive Officer.
Genstar invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. The firm targets investments in the financial services, software, industrial technology, and healthcare industries. Genstar was founded in 1988 and is based in San Francisco (www.gencap.com).
“Genstar focuses on identifying market leaders in the software sector and we believe that PDI has established an unmatched presence in the market for more than 30 years,” said Eli Weiss, a Managing Director at Genstar. “Our added capital and resources in partnership with TA Associates will provide PDI with the means to further develop their technology and allow for strategic add-on acquisitions that we believe will meet the needs of a rapidly changing market. We look forward to working with the PDI management team and TA to help accelerate the company’s growth.”
“Since beginning our partnership with the PDI management team in May 2016, PDI has successfully executed against its growth strategy, rapidly accelerating topline revenue growth, delivering significant levels of product innovation and deepening its presence in international markets,” said Hythem El-Nazer, a Managing Director at TA. “PDI has accomplished a great deal in the last 15 months, and we believe that its future is bright.”
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare, and consumer industries. Since founding in 1968, TA has invested in over 500 companies globally and has raised more than $24 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).
Lazard (www.lazard.com) was the financial advisor to PDI on this transaction.
© 2017 Private Equity Professional | August 28, 2017