Bertram Capital has acquired Spectrio, a provider of customer engagement products and services, from The Riverside Company which acquired the company in October 2014 from SJ Partners.
Spectrio offers its customers subscription access to a suite of customized content ranging from on-hold messaging to digital signage and in-store music and messaging. The company’s services include content creation, professional production of audio or visual content, installation, and network management. Spectrio’s products and services are used to engage and educate customers in order to increase sales and improve customer retention.
The company, based near Tampa in Oldsmar, FL, was founded in 2002 by Aaron Kleinhandler and Mitch Keller, who built the company through 24 add-on acquisitions (www.spectrio.com).
“Bertram is extremely excited to partner with the team at Spectrio,” said Jared Ruger, a Partner at Bertram. “As a market leader with a vast content library and differentiated content delivery model, proven commitment to customer service, and history of completing accretive add-on acquisitions, Spectrio aligns well with Bertram’s unique buy and build investment strategy. We believe there is a robust add-on acquisition landscape, as well as meaningful opportunities to accelerate organic growth.”
Bertram Capital invests in middle-market business services, consumer, healthcare, industrial and technology companies that have revenues from $30 million to $250 million and EBITDA of $5 million to $30 million. To drive growth and create vale in its portfolio companies, Bertram uses an investment strategy called “High 5” which focuses on five core operating principles – sales and marketing improvement, management support, supply chain optimization, technology optimization, and add-on acquisitions. The firm is located in San Mateo, CA (www.bertramcapital.com).
During Riverside’s term of ownership, Spectrio completed seven add-on acquisitions that expanded the company’s customer base and geographic footprint while adding new service offerings. “Spectrio gained a number of new service capabilities and blue-chip customers through strategic add-ons,” said Riverside Managing Partner Suzy Kriscunas. “Working with a strong management team at Spectrio helped us achieve our investment goal within a short period of time.”
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 480 transactions. The firm’s international portfolio includes more than 80 companies. The firm is headquartered in New York with 16 additional US and international offices (www.riversidecompany.com).
“When we invested in Spectrio in October 2014, the company focused primarily its on-hold messaging product with a relatively lean sales and marketing team,” said Riverside Partner Peter Tsang. “During our three-year ownership period, Spectrio has transformed into a multi-product customer engagement provider with a national base of over 20,000 customers representing 60,000+ locations and a market leadership position that will enable the company to continue its growth trajectory.” Working with Mr. Tsang on the transaction for Riverside were Principal Brad Roberts, Senior Associate Laura Swearingen, Associate Ming Yau, Operating Partner George Benson and Operating Executive Bill Byers.
“Riverside has been an outstanding partner, helping Spectrio increase sales and deliver a broader suite of services to an ever-growing customer base,” said Mr. Kleinhandler. “Their transacting and operating teams helped bring us to this exciting next phase of growth for our company.” Mr. Kleinhandler will remain as CEO of the company under Bertram ownership and he is retaining a meaningful portion of his ownership in the business.
Lincoln International was the financial advisor to The Riverside Company and Spectrio on this transaction.
© 2017 Private Equity Professional | September 20, 2017
