Align Capital Partners (ACP) has acquired Electronic Transaction Consultants (ETC) from Atlantia SpA.
ETC is a provider of software and services used in electronic tolling technology, congestion management, and back-office support. Customers of the company include 3 of the top 15 toll authorities in the United States and the company’s products process more than 2 billion toll transactions per year.
ETC was founded in 1999 by Tim Gallagher and is headquartered north of Dallas in Richardson, Texas.
“We are looking forward to working with a growth-oriented partner who wants to further invest in our technology and innovative team to create a more robust mobility-as-a-service platform,” said Bret Kidd, the CEO of ETC. “As toll road miles are expected to grow significantly in the US over the next five years, ETC’s data capture and transaction processing technology is uniquely positioned to help state and local governments implement more efficient collection capabilities.”
Atlantia (Borsa Italiana: ATL), the seller of ETC, is an Italian holding company active in the infrastructure sector, including motorways, airport infrastructure and transport services. The company, founded in 1950, has annual revenues of more than €11 billion and is headquartered in Rome. Atlantia first invested in ETC in December 2007.
“ACP is proactively targeting the state and local government technology space, and ETC is an exciting growth opportunity in an attractive market,” said Rob Langley, a managing partner and a co-founder at Align. “The company serves some of the largest government tolling agencies in the US and is well-capitalized and positioned to leverage its technology suite for new projects.”
Working with Mr. Langley on this transaction were Operating Partner Dave Perotti, Vice President Matt Iodice and Associate Hannah Dickey.
Align Capital Partners makes control investments in companies with enterprise values up to $150 million that have from $3 million to $10 million of EBITDA. Sectors of interest include business-to-business services, specialty manufacturing, and value-added distribution. In January 2020, Align closed its second fund, Align Capital Partners Fund II LP and Align Capital Partners Fund II-A LP, at a combined hard cap of $450 million. The buy of ETC is ACP’s fourth platform and 12th overall investment in 2020.
Align, with offices in Cleveland and Dallas, was founded in 2016 by managing partners Steve Dyke, Rob Langley, and Chris Jones – all formerly of The Riverside Company – and has a total of 18 team members.
ETC was advised on this transaction by JD Merit & Company, an investment bank headquartered in Tacoma, Washington.
Private Equity Professional | August 25, 2020