PE Weekly: Tech-Enabled Services Continue M&A Drive

The tech-enabled business services corner of the M&A market remains resilient towards the close of the year’s first quarter. This week, investors embrace service providers across higher education, aerospace and defense, financial services consulting and beyond.

Platform Investments

Rubicon Acquires Majority Stake in CollegeNET. Higher education software solution provider CollegeNET announced this week it received a majority investment from middle-market private equity firm Rubicon Technology Partners. Rubicon specializes in software investments. CollegeNET enables higher education institutions to streamline administration workflows.

The Oakdale Company Acquires Century-Tech. Private investment firm The Oakdale Company has acquired Century-Tech, a manufacturer of flexible packaging machinery, according to an announcement provided to Middle Market Growth. The Oakdale Company plans to grow the business through organic initiatives and strategic acquisitions.

JFLCO Acquires Majority Stake in Wrist. J.F. Lehman & Company (JFLCO), a private equity firm focused on the aerospace and defense market, has acquired a majority stake in Wrist, a maritime supply, logistics and budget management services provider. JFLCO will partner with Altor Equity Partners, Wrists’s current sponsor, to support its next phase of growth.

H.I.G. Takes Majority stake in Protos S.p.A. H.I.G. Capital has announced its acquisition of a majority stake in Protos S.p.A., a provider of technical advisory and consulting services based in Italy. The company services investors, financial institutions and insurance companies across the infrastructure, energy, real estate and financial services sectors.

Add-Ons

Aurora Capital’s Cold Chain Technologies Acquires GCCS. Aurora Capital-backed Cold Chain Technologies has announced its acquisition of Global Cold Chain Solutions (GCCS), its fifth add-on acquisition since partnering with Aurora. GCCS provides cold chain logistics solutions in Australia and India for a variety of life sciences applications.

TJC LP’s PSC Acquires Railcar Service Providers. PSC Group, a provider of logistics and repair services to the chemical, refining, agricultural and pulp industries, has acquired 32 Rescar operations across the U.S. Rescar provides repair, inspection, cleaning, switching and maintenance services for railcar and ISO containers. PSC is a portfolio company of TJC LP.

TSCP’s PestCo Acquires Garella Pest Services. Garella Pest Services has been acquired by PestCo Holdings, a pest control services provider backed by Thomson Street Capital Partners (TSCP). Garella provides residential and commercial pest control services.

TriSpan’s PrestigePEO Acquires Concurrent HRO. Professional employer organization PrestigePEO, backed by private equity investor TriSpan LLP, has acquired Concurrent HRO, according to a press release. The investment marks PRestigePEO’s fifth add-on acquisition and expands its presence in the Midwest and Mountain regions.

K1’s Gravyty Merges with Ivy.ai, Ocelot. Gravyty, an alumni and donor engagement and fundraising solution provider backed by software investor K1, has announced its merger with Ivy.ai and Ocelot. Both businesses offer AI-powered student enrollment and engagement technologies. The combined entity will unite under the Gravyty brand, a press release said.

Exits

Battery Ventures Exits PPT to SK Capital. In an announcement this week, private investment firm SK Capital Partners, which focuses on the materials, ingredients and life sciences sectors, has acquired Physical Properties Testers Group (PPT). SK Capital acquired the property test and measurement solution provider from its former sponsor Battery Ventures.

Odyssey Investment Exits Mercalis to PharmaCord. PharmaCord, a patient services provider for the pharmaceutical sector that is majority owned by investment firm Permira, will merge with Odyssey Investment Partners-backed Mercalis. The company similarly supports life sciences businesses with patient service solutions.

Fundraising

Pamlico Raises $1.75 Billion. Middle-market private equity firm Pamlico Capital has announced the closing of its sixth fund with $1.75 billion in capital commitments. Pamlico Capital VI was oversubscribed, exceeding its initial $1.5 billion target. The firm focuses on investments in the communications, healthcare IT, information services, software and tech-enabled services sectors.

Capitala Raises $1 Billion for Latest Fund. Private markets investment firm Capitala Group has announced the close of its latest fund with more than $1 billion in capital commitments. The firm focuses on lower middle-market companies across North America.

Insights

ACG Detroit Announces M&A All Star Award Winners. ACG Detroit this week announced the winners of its 10^th annual M&A All Star Awards. Among them includes the Rising Star award, awarded to Aquila Equity Partners Managing Director Ashley Gray, as well as Dealmaker of the Year Blue River Financial Group Managing Director Chris Caron. More information about the M&A All Star Awards event, which will honor the award recipients at The Townsend Hotel in Birmingham, Michigan on May 7, can be found here.

Walgreens to Go Private in $10 billion Deal. Walgreens Boots Alliance announced this week it reached an agreement to be acquired by Sycamore Partners for a transaction value just under $10 billion, according to reports. Walgreens, which has been public since 1927, has begun the closure of 1,200 of its U.S. locations amid rising pharmaceutical costs and inflation challenges.

Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.