Charlesbank buys half of GTCR’s Park Place Technologies

Charlesbank Capital Partners has bought half of GTCR-backed Park Place Technologies, four sources familiar with the deal told Buyouts.

The firm paid nearly $1.3 billion for 50 percent of the company, the people said. The price represents 17x the company’s Ebitda of $75 million, they said.

The process, run by UBS, started in May, when GTCR was exploring options to sell 30 to 50 percent of the business.

The deal has not closed yet, a source close to the process said.

For Charlesbank, this investment is in line with the firm’s recent dedicated push into technology.

Charlesbank recently poached two technology-focused executives Darren Battistoni and Hiren Mankodi from Pamplona Capital Management to co-lead its Technology Opportunities Fund, which is said to be targeting $600 million.

It’s unclear whether the funds for Park Place’s investment came from the new fund.

GTCR acquired Park Place for $290 million in December 2015, Moody’s said. WestView Capital was the seller. The funds came out of GTCR Fund IX, which closed on $2.75 billion in 2016, the firm’s website shows.

Since the acquisition, the company has been growing through add-ons, adding 11 companies to its platform. Most recently, in April, Park Place bought MCSA Group Ltd, the U.K. IT services and solutions provider.

Park Place Technologies, of Cleveland, provides a post-warranty alternative to storage, server and networking hardware maintenance for IT data centers. The company serves more than 16,000 organizations in 141 countries. Customers include Dell, Cisco, Oracle, IBM and Hewlett Packard Enterprise, among others.

Charlesbank, based in Boston, is a middle-market private equity firm managing more than $5 billion of capital. Charlesbank focuses on management led buyouts and growth capital financings and also engages in opportunistic credit and technology investments.

GTCR declined to comment for the story. Charlesbank and Park Place Technologies did not return request for comment before press time.

Update: This report was updated to include information on the status of the deal’s pending closure and to include a decline to comment from Charlesbank. It was also updated to reflect that Charlesbank bought 50 percent of Park Place Technologies.

Action Item: Contact GTCR’s investment team at +1 312-382-2200.