Houlihan Lokey said Tuesday that it has acquired ArchPoint Partners. No financial terms were disclosed for the transaction, which was completed on March 7, 2014. Based in San Francisco, ArchPoint is an investment bank that works with clients in the tech sector.
SAN FRANCISCO & NEW YORK–(BUSINESS WIRE)–Houlihan Lokey, the international investment bank, today announced that it has acquired ArchPoint Partners, LLC (ArchPoint), a San Francisco-based independent investment banking firm that provides mergers and acquisitions and private capital raising advisory services to clients in the technology sector. The transaction, which closed on March 7, significantly enhances Houlihan Lokey’s global coverage and capabilities for clients across the technology sector.
Founded in 2009, ArchPoint focuses exclusively on the technology sector. The firm has developed a strong reputation since its founding, advising numerous companies on financings and business combinations with key sector private equity firms as well as large-cap infrastructure and application software vendors including IBM, Microsoft, SAP, Google, Yahoo! and Symantec. ArchPoint’s founding team has combined prior experience of more than 400 completed transactions totaling $200 billion and is considered a leader in SaaS business advisory work, having completed more than 50 transactions for SaaS companies.
ArchPoint co-founders and Managing Directors John Cooper and Rob Louv will jointly lead Houlihan Lokey’s Technology Group, reporting to Scott Adelson and Bob Hotz, Co-Heads of Corporate Finance. Susan Blanco and Dan Williams, ArchPoint’s other co-founders, will also serve as Managing Directors in the Group. ArchPoint’s founders previously worked together in senior corporate and banking positions at Microsoft and JPMorgan Chase, among others.
“The ubiquity of technology in every facet of society is undeniable,” said Mr. Adelson. “By joining Houlihan Lokey, ArchPoint’s banking team will be able to forge direct relationships with end-users of technology in every industry in which we do business; similarly, these end-users will now have access to unmatched technology expertise, particularly in the software space. This acquisition is a fantastic addition to the arsenal of intellectual capital we provide our clients, and we’re delighted that the ArchPoint team is joining Houlihan Lokey.”
The acquisition comes at a particularly opportune time given recent M&A activity in the sector. In 2013, US technology M&A volume totaled $128.7 billion, the highest in more than a decade; year to date, 2014 volume through February was already more than $43 billion, according to Thomson Reuters data. Other factors, including continued private equity interest in the sector and the widespread belief that the global economy is improving, support continued deal activity in the sector.
“Since forming ArchPoint, we have worked diligently to build on our excellent track record with each client engagement through achieving superior outcomes, and we are eager to continue that momentum with Houlihan Lokey,” said Mr. Cooper. “Joining a firm with Houlihan Lokey’s reputation, global reach, and client relationships, particularly among financial sponsors, is an extremely exciting opportunity, and we look forward to building a first-class Technology Group here,” added Mr. Louv.
Both Houlihan Lokey and ArchPoint advised themselves on the transaction. Manatt, Phelps & Phillips, LLP served as legal counsel to Houlihan Lokey and Holland & Knight was legal counsel to ArchPoint.
Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and Asia. Independent advice and intellectual rigor are hallmarks of our commitment to client success across our advisory services. Houlihan Lokey is ranked as the No. 1 global restructuring advisor, the No. 1 M&A fairness opinion advisor for U.S. transactions over the past 10 years, and the No. 1 M&A advisor for U.S. transactions under $3 billion, according to Thomson Reuters. For more information, please visit www.HL.com
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