Cove Hill Partners has made an investment in Gamma Technologies, a provider of engineering simulation software. TA Associates, which first invested in Gamma in June 2015, will continue to remain the largest shareholder in the company.
Gamma Technologies provides computer-aided engineering (CAE) software that is used by engineers in vehicle and component design to execute large-scale, integrated simulations of powertrain and vehicle systems.
The company’s software systems are sold under the GT-SUITE brand and by utilizing an extensive library of physics-based modeling software can be used to simulate a variety of vehicle functions and subsystems, including powertrain, transmission, engine, thermal management, hydraulics, lubrication and friction, acoustics, HVAC, and general multi-body mechanics and control.
In late February 2018, Gamma acquired the AutoLion battery modeling software business from State College, PA-based EC Power. AutoLion is an advanced lithium-ion battery simulation software used for both one dimension and three dimension battery analysis and design. The software utilizes an extensive electrochemical database of materials and chemistries that allows battery suppliers and OEMs to reduce the burden (time and expense) of laboratory testing of lithium-ion batteries (ecpowergroup.com).
Gamma Technologies was founded in 1994 and is led by Dr. Thomas Morel, its Chief Executive Officer and President. The company is headquartered near Chicago in Westmont, IL and has an additional office in Stuttgart, Germany. (www.gtisoft.com).
“In seeking to continue executing on our strategic priorities while simultaneously providing continued product innovation and the highest quality of services to our dedicated customer base, we are thrilled to have the opportunity to partner with Cove Hill Partners, a firm that has a long-term oriented approach in their investment philosophy,” said Dr. Morel. “We are also excited to continue our relationship with TA Associates, which has provided a significant amount of strategic and operational support over the past three years, helping accelerate our growth and strengthen our market position. It is a pleasure to have both long-term focused investment firms as part of Gamma Technologies.”
“As a premier CAE software provider, Gamma Technologies represents a unique investment opportunity to help drive expansion into new and emerging markets with a market leading business,” said Andrew Balson, Founder and Managing Partner of Cove Hill Partners, who will join the Gamma Technologies Board of Directors.
Cove Hill makes control or minority investments in North American-based consumer and technology companies that have enterprise values of up to $800 million. The firm was founded in September 2017 when it closed its first private equity fund with over $1 billion of commitments. Cove Hill intends to build a portfolio of 5 to 8 companies and will focus on longer-term investments with an average duration of eight or nine years, but, in some cases lasting as long as 15 years. Cove Hill was founded by Andrew Balson, who previously spent 17 years at Bain Capital. Other members of the founding team include Justin Roberts, Lara Moskowitz and Keith Power. Cove Hill is headquartered in Boston (www.covehillpartners.com).
“Since completing our investment in Gamma Technologies nearly three years ago, the company has successfully scaled its global operations while also expanding into new industry verticals and applications,” said Hythem El-Nazer, a Managing Director at TA Associates and member of the Gamma Technologies Board of Directors. “We are delighted to partner with Cove Hill to build upon Gamma’s strong foundation and industry-leading product innovation.”
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).
This transaction is expected to close at the end of June 2018.
© 2018 Private Equity Professional | May 11, 2018
