Diversis Capital buys majority stake in BLUE


Diversis Capital has acquired SGK subsidiary BLUE from Matthews International. No financial terms were disclosed. Based in Des Plaines, Illinois, BLUE is a provider of artwork and label management software for businesses.

PRESS RELEASE

LOS ANGELES, CA – Diversis Capital LLC, a Los Angeles-based private equity firm that acquires controlling interests in small to middle market companies, has completed a majority acquisition of the assets of BLUE!™ Software (“BLUE”), a subsidiary of SGK, through Diversis’ newly formed entity, BLUE Software Holdings, LLC. Based in Des Plaines, IL, BLUE is the industry leader in artwork and label management software for enterprise-class customers. This is a carve-out transaction of a successful and growing enterprise-class software business from its public parent company, Matthews International (NASDAQ: MATW).

Complete with robust workflow, digital asset management, proofing, copy management and text compare modules, BLUE product suites are used by many Fortune 500 companies to improve speed-to-market, reduce production cost, and ensure government compliance for consumer and pharmaceutical labels and covers. BLUE is currently the largest provider in the space with banner clients globally.

Diversis plans to invest heavily in BLUE, specifically in R&D and sales, to accelerate growth and ramp up innovation in an industry that is demanding more end-to-end platforms for the label and artwork management process. This process is paramount for marketing, regulatory and compliance divisions of major corporations in the consumer packaged goods, pharmaceutical and retail industries.

Scott Strong, CEO of BLUE and former global managing director of the product within SGK, said, “Our entire global team is poised and ready to accelerate forward under this new business model. Expanded resources and expertise will significantly add to the lead position and momentum we have secured as an established SaaS provider.”

Post carve out, SGK/Matthews will still support the business by continuing to provide BLUE to its customers as its preferred artwork management vendor. David Schawk, CEO of SGK, stated, “Our commitment to provide premier technology to our market evolves as we move BLUE to an autonomous company. We are excited that current and future clients will benefit with expanded products and services.”

Ron Nayot, managing director of Diversis Capital, said, “We will improve the product suite and provide even more functionality and flexibility, allowing for more seamless integrations and operations with Fortune 500 companies. We have a tremendous opportunity to remain at the forefront of innovation in this nascent space that is beginning to understand the significant need for this type of software solution.”

Kevin Ma, managing director of Diversis Capital, added, “BLUE has vast potential in a market that is becoming increasingly relevant. When we initially set out to create Diversis, we knew that enterprise-class software carve-outs would be a top priority for us, and we knew very early on that the BLUE transaction would be a perfect fit for our model.”

Founded in 2013, Diversis Capital LLC is a North American private equity firm with a focus on carve-outs, standalone deals and special situations in the lower and middle markets that require both sharp financial acumen and operational expertise to reach success. Diversis, founded by managing directors Ron Nayot and Kevin Ma along with the firm’s chairman Marc Luzzatto, is in full acquisition mode with a goal of executing several transactions annually.
www.diversiscapital.com