Canal Partners has acquired a control stake in NETtime Solutions, a Scottsdale, Ariz.-based provider of an online time and attendance SaaS suite. No financial terms were disclosed.
Canal Partners, a Scottsdale, Ariz.-based private equity firm, announced today it has acquired a controlling interest in privately held NETtime Solutions (www.nettimesolutions.com). Best known for its popular web-based time and attendance software-as-a-service (SaaS) suite called NETtime, the company was founded in 2002 and has grown to serve more than 50,000 employees to date.
The acquisition is the second significant purchase for Canal Partners, which in November 2008 purchased a majority stake in online ground transportation booking company Limos.Com. Canal Partners is actively in the market to acquire technology-based companies with considerable growth potential.
“NETtime Solutions is a compelling business because it’s a top-tier player in the time and attendance space and its software as a service model makes it highly scalable,” said Canal Partners Managing Partner Jim Armstrong. “The company also has an impressive customer list that includes corporations such as Delta Air Lines, F.A.O. Schwarz and Aramark.”
Armstrong, along with partner Wain Kellum, has joined the NETtime Solutions board of directors. Armstrong is also chairman of the board of JDA Software Group, Inc. (NASDAQ: JDAS), which he founded in 1978. Canal Partners Managing Partner Todd Belfer was a founder of NETtime Solutions and already serves as the company’s chairman.
NETtime Solutions has offices in Scottsdale, Ariz., and Bangalore, India, and currently has 27 employees. The company became profitable for the first time earlier this year and had 2008 revenues of $3.2 million.
“It’s an exciting period for NETtime and the time and attendance industry as a whole,” said Bahan Sadegh, Chief Executive Officer of NETtime Solutions. “We believe we’re poised to more than double the number of employees who use NETtime by the end of this year and we’re planning to release a powerful upgrade in early 2010.”
The NETtime product suite enables companies to manage all of their time and attendance functions in an easy-to-use web environment. Functionality includes labor management, employee timesheets, benefit accrual calculation, real time & scheduled reporting, HRIS and payroll interfaces and multiple data collection options. The product is 100 percent web-based, highly secure, comes with technical support as well as training and can be implemented for as little as $50 per month.
About Canal Partners
Canal Partners is a private equity firm located in Scottsdale, Arizona, seeking to realize superior returns by investing and partnering with proven management teams to create and increase value for highly scalable, growth-oriented companies with a focus on software and Internet technologies. Alongside an investment commitment of $1 million to $5 million, typical portfolio companies will have an enterprise value of $5 million to $30 million, limited debt, solid cash flow, and a proven management team. For more information: www.canalpartnersllc.com