Cinven agrees to buy risk management specialist Archer from Clearlake and STG; Trinity Hunt launches HVAC platform

Trinity Hunt invests in HVAC firm Alliance Group.

Good morning, Hubsters. MK Flynn here with today’s Wire.

It’s a deal-packed Thursday, with several noteworthy private equity-backed transactions announced this morning.

Cinven, Trinity Hunt and Enhanced Healthcare Partners are among today’s buyers.
Clearlake and STG are among the sellers.

Let’s get right to the deals:

Dell carveout thrives as standalone
International PE firm Cinven has agreed to buy risk management software provider Archer Technologies from Clearlake Capital Group and Symphony Technology Group for undisclosed terms.

Founded in 2000 and headquartered in Overland Park, Kansas, Archer is a provider of integrated risk management cloud-based software with products focused on compliance, governance, security, audit and ESG.

STG initially acquired Archer in 2020 as a part of its acquisition of RSA Security from Dell Technologies and subsequently partnered with Clearlake in 2021 to establish Archer as an independent business.

Under Clearlake and STG’s ownership, Archer doubled the size of its Software-as-a-Service its annual recurring revenue. The company currently has roughly 1,000 customers globally, including more than half of the Fortune 500 companies across financial services, healthcare, technology, consumer and other end-markets, according to Archer.

“Since the Dell carveout in 2020, we established Archer as a standalone business and drove investments in both product and sales and marketing, which resulted in product innovation and capital efficient growth at the company,” said William Chisholm, managing partner, STG.

“With a portfolio of leading end-to-end software solutions alongside a history of product innovation, we believe Archer is well positioned to capitalize on emerging growth trends in global risk and compliance software markets,” said Julia Kahr, partner and head of North America, and Daniel Garin, senior principal, Cinven.

The deal is expected to close in the middle of the year, subject to closing conditions and regulatory approvals.

New HVAC platform launched
Trinity Hunt Partners has made a majority investment in Alliance Group, a provider of commercial heating, ventilation, and air conditioning (HVAC) system services.
Alliance marks Trinity Hunt’s initial investment as part of a broader platform acquisition strategy in the commercial HVAC services industry. Steve Knowles will lead the platform as the CEO, bringing extensive experience in M&A with a proven track record of leading services businesses through accelerated growth, according to the press release.

The Dallas-based PE firm is actively looking for add-on opportunities for the platform.
“Alliance’s impressive track record of growth, along with its commitment to quality service, made this partnership a perfect fit to launch our platform,” said Garrett Greer, partner at Trinity Hunt. “We look forward to scaling the business through strategic acquisitions across the US and supporting management as they continue to execute on organic growth initiatives.”

Care delivery network expands
Speaking of add-ons, we’re paying more attention to them than usual this year, as sources tell us it’s the “year of the add-on” when PE firms are making the most of their existing portfolio.

A healthcare add-on announced this morning caught my eye:

Following its recent $100 million equity and debt capital raise led by Enhanced Healthcare Partners, Vytalize Health has acquired a controlling stake in physician-led Independent Physician Association of New York.

Headquartered in Suffolk County, IPA NY is one of the largest multi-specialty IPAs in the country, with more than 3,000 providers, according to the deal announcement.
EHP made its initial investment in Vytalize in March 2022.

“One year into our partnership, Vytalize has seen exceptional growth in its care delivery infrastructure and geographical presence,” commented EHP general partner Samarth Chandra. “EHP recognizes that additional capital and strategic M&A will further Vytalize’s momentum and drive sustainable relationships for its care delivery network — ultimately bettering the healthcare experience and empowering patients with their health outcomes.”

Having just had oral surgery yesterday, I’m all for empowering patients with our health outcomes!

On that optimistic note, I’ll sign off.

PE Hub’s Obey Martin Manayiti will be with you for Friday’s Wire, and I’ll be back on Monday.

All the best,