Renovo Capital has acquired the assets of Global HR Research from publicly-traded Patriot National for total consideration of up to $30 million.
The specifics of the purchase price include $20 million in cash at closing, $5 million deposited into escrow for possible purchase price and working capital adjustments, satisfaction of certain post-closing conditions and any indemnification claims. In addition, Patriot National may receive an earnout payment of up to an additional $5 million.
Global HR Research (GHRR) is a provider of pre-hire intelligence and employee onboarding services. GHRR serves small businesses and Fortune 500 companies that are active in the academic, financial services, franchise and associations, gaming, healthcare, law enforcement, manufacturing, non-profit & volunteer, retail, transportation, and utilities sectors. Employee onboarding, also known as organizational socialization, refers to a service mechanism through which new employees acquire the necessary knowledge, skills, and behaviors to become effective organizational members with the ultimate goal of achieving maximum performance. GHRR was founded in 2005 by CEO Brandon Phillips and is based in Fort Myers, FL (www.ghrr.com).
“We are excited to partner with Brandon and his team in a dynamic data-driven industry. GHRR’s relentless focus on accuracy and customer service provide a strong foundation for growth and innovation,” said David Hull, Managing Partner at Renovo Capital.
Renovo Capital makes control equity investments in lower middle market businesses that are undergoing varying degrees of operational, financial or market-driven change. Renovo typically invests from $5 million to $30 million of equity capital in businesses with annual revenues between $25 million and $200 million. Sectors of interest include manufacturing, distribution, and services. Renovo was founded in 2009 and is based in Dallas with an additional office in Denver (www.renovocapital.com).
Renovo Capital closed its second special situations fund, Renovo Capital Fund II, LP, in September 2014 with $132 million committed capital. The acquisition of GHRR furthers Renovo’s focus in the technology-enabled business services sector alongside its existing investments in Dimont & Associates (acquired in March 2016) and ATTOM Data Solutions (acquired in November 2011).
Patriot National (NYSE:PN) is a national provider of technology and outsourcing services that assist insurance companies and other company types to mitigate risk and comply with complex regulations. Products include general agency services, technology outsourcing, software services, and specialty underwriting. Patriot National is headquartered in Fort Lauderdale, FL (www.patnat.com).
© 2017 Private Equity Professional | April 6, 2017