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Francisco Partners Acquires Vendavo

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Francisco Partners has completed the acquisition of Vendavo, a provider of business-to-business pricing optimization strategies.

Vendavo provides price optimization and management services that are used by its customers to make better data-driven decisions for pricing and sales effectiveness. The company serves B2B mid-market and enterprise companies in the chemicals and process industries, consumer packaged goods, wholesale distribution, energy and utilities, technology, industrial manufacturing, and medical devices and consumables. The company is based in Mountain View, CA (www.vendavo.com).

David Mitchell, an operating partner of Francisco Partners, will join Vendavo as CEO and lead the company’s worldwide business strategy and operations.  Incumbent CEO Neil Lustig will transition into an advisory role with Vendavo.

Mr. Mitchell has more than 25 years of experience as a software executive.  Previously, he was the president and CEO of Global 360, an enterprise business process management solutions provider, and CEO of webMethods, an enterprise software company focused on application, business process and B2B partner integration.  “It is truly a privilege to join Vendavo,” said Mr. Mitchell. “The company has an impressive list of customers and a strong portfolio of innovative products. I look forward to working with the leadership team to fully capitalize on Vendavo’s tremendous growth opportunities and take the company to new heights.”

“Vendavo has built a terrific foundation and we look forward to working with David and the team,” said Petri Oksanen, a partner at Francisco Partners. “Combining the management talent of Vendavo and Francisco Partners puts the company in an excellent position to usher Vendavo into its next stage of growth.”

Francisco Partners makes investments in technology companies with transaction values ranging from $50 million to $2 billion. Transaction structures include buyouts, divisional divestitures, recapitalizations, restructurings and growth equity financings. Francisco Partners is headquartered in San Francisco (www.franciscopartners.com).

Golub Capital was the lead arranger, sole bookrunner, and administrative agent on a senior credit facility to support the acquisition of Vendavo.  This is the ninth transaction that Golub has closed with Francisco Partners.  “We chose Golub Capital to lead the transaction because they understood our strategy to grow the business and provided us a customized and flexible solution that will help us execute it,” said Mr. Oksanen.

Golub Capital’s Late Stage Lending group, a unit of Golub Capital’s Middle Market Lending business, provides financing to technology companies backed by venture capital, growth equity, private equity or other private companies. The group will holds entire credit facilities from $15 million to $75 million in technology companies undergoing growth due to new services, increased adoption and/or entry into new markets.

“We are very excited to become a partner to Vendavo and support the company’s continued growth,” said Spyro Alexopoulos, Managing Director at Golub Capital.  “We are also thrilled to be completing another transaction with a world class sponsor and long-time partner in Francisco Partners.”

Francisco Partners was advised by JMP Securities, and Vendavo was advised by William Blair.

2014 PEPD • Private Equity’s Leading News Magazine • 10-30-14

Sverica International Invests in 7Summits

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Sverica International Management has made a growth equity investment in 7Summits, a provider of social business consulting and agency services.

“Companies are looking to leverage social networking to transform their business across every functional area as we help them to engage their employees, partners and customers to help build their business,” said Paul Stillmank, Chief Executive Officer of 7Summits. “We look forward to working with Sverica and leveraging their deep experience as we continue to aggressively grow our business and expand into new markets.”

7Summits is a provider of social business consulting and agency services. 7Summits offers its customers expertise in social business strategy, community experience design, platform development and integration, as well as community activation. 7Summits was founded in 2009 and is headquartered in Milwaukee (www.7summitsagency.com).

“We are impressed by the talented team of social business experts, the strong client relationships, and the track record of quality work product that 7Summits has built in its short history. 7Summits has demonstrated an impressive level of sustained growth while driving profitability, making the company a great addition to our portfolio,” said Jordan Richards, Managing Director at Sverica. “We are excited to partner with Paul Stillmank and his management team to expand 7Summits’ leadership position in this nascent market and capitalize on growing demand for social business solutions.”

Sverica invests in service oriented businesses and light industrial manufacturers. The firm targets companies with enterprise values under $100 million and EBITDAs greater than $3 million. Sverica was founded in 1993 and has over $425 million of assets under management across three funds. The firm has offices in Boston and San Francisco (www.sverica.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-18-13

H.I.G. Capital Exits Lucas Group

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H.I.G. Capital has sold its portfolio company Lucas Group, a mid-management recruitment firm, to Orchard Holdings Group.

Lucas Group is the nation’s largest mid-management recruitment firm, with supporting business lines in military transition and contract staffing. The company comprises 14 offices nationwide and over 325 associates focused on placing mid-management professionals into positions at small-to-medium enterprises as well as large institutions. The company was founded in 1970 and is headquartered in Atlanta (www.lucasgroup.com).

Orchard Holdings Group is a private investment firm that invests non-institutional, private, family capital in businesses with $25 million to $250 million in revenue. The firm typically invests $10 million to $40 million of capital per transaction. Orchard Holdings is based in Cincinnati (www.orchardholdings.com).

“Orchard’s primary objective is to partner with exceptional management teams and build durable, successful businesses. Lucas Group represents exactly that kind of opportunity,” said Pete Boylan, Co-Founder and Managing Director of Orchard Holdings. “Under its current leadership and strategy, Lucas Group has the capacity to continue to expand its business and gain market share in the outsourced human resources services industry. We are excited about our new partnership with this impressive team.”

“Orchard truly reflects our shared approach to business,” said Andi Jennings, President and CEO of Lucas Group. “A high-integrity investment group, they will provide the financial foundation for Lucas Group’s enduring success with honesty, responsibility and a genuine commitment to partnership. We are thrilled to embark on this exciting journey with Orchard.”

Investment bank Livingstone acted as the exclusive financial advisor to Lucas Group and H.I.G. “We are proud to have represented Lucas Group and H.I.G. on this private equity exit and to post another successful sale to a financial buyer for an important client. Adding H.I.G. to our growing list of satisfied private equity clients is a tremendous addition to Livingstone’s resume,” said Livingstone Partner Steve Miles.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $13 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Paris, and Rio de Janeiro (www.higcapital.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-3-13

McCarthy Capital Acquires Environmental Planning Group

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McCarthy Capital has acquired Environmental Planning Group (EPG), an environmental planning and design firm. The investment in EPG was made through McCarthy Capital Fund V.

Environmental Planning Group is an environmental consulting firm offering services in environmental planning, landscape architecture, land-use planning, biological and cultural resources, earth sciences, paleontology, public involvement, geographic information systems and environmental compliance.  EPG is based in Phoenix, AZ (www.epgaz.com).

Greene Holcomb & Fisher (www.ghf.net) represented Environmental Planning Group in this transaction.  “This transaction, structured as an equity recapitalization, was a win-win for all parties involved as all current EPG shareholders reinvested a substantial portion of their proceeds alongside McCarthy, and several other senior managers were given the opportunity to buy equity in the transaction,” said Paul Jevnick, Managing Director at GH&F.  “EPG is the preeminent brand in its market and we look forward to working with our management partners to grow EPG’s presence,” said Patrick Duffy, Managing Partner of McCarthy.

McCarthy Capital invests from $10 million to $30 million in middle market companies with operating profits between $3 million and $25 million.  McCarthy partners with existing management teams across a range of industries and is equally comfortable as a minority investor or majority shareholder.  Since 1986, McCarthy has invested in over fifty companies, including Cabela’s, Peak 10, Guild Mortgage Company, and Vornado Air. The firm has approximately $700 million in capital under management and is based in Omaha with an additional office in Boston (www.mccarthygroup.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-14-12