Cove Hill Partners has agreed to invest in Gamma Technologies. Financial terms weren’t announced. TA Associates will continue to remain the largest shareholder in the company. Gamma, of Westmont, Illinois, provides engineering simulation software. Goodwin Procter LLP provided legal counsel to TA Associates and Gamma Technologies. Ropes & Gray LLP acted as legal counsel to Cove Hill Partners.
BOSTON and WESTMONT, IL, May 10, 2018 – Gamma Technologies, LLC, a leading provider of engineering simulation software, today announced that it has agreed to a strategic investment from Cove Hill Partners, a long-term oriented private equity firm focused on backing management teams of market-leading companies. TA Associates, a leading global growth private equity firm that invested in Gamma Technologies in June 2015, will continue to remain the largest shareholder in the company. The transaction is expected to close at the end of June 2018. Financial terms of the transaction were not disclosed.
Founded in 1994, Gamma Technologies offers a highly sophisticated computer-aided engineering (CAE) software GT-SUITE that is used by engineers to execute large-scale, integrated simulations of powertrain and vehicle systems. GT-SUITE includes a complete library of physics-based modeling software customized to address the challenges of vehicle and component design, allowing simulation of a variety of vehicle functions and subsystems, including powertrain, transmission, engine, thermal management, hydraulics, lubrication and friction, acoustics, HVAC, after treatment, general multi-body mechanics and control. Customers include all major global automotive manufacturers and most of their suppliers. Gamma Technologies announced in February its acquisition of the AutoLion® battery modeling software business from EC Power. Gamma Technologies is headquartered in Westmont, Illinois, with a European office in Stuttgart, Germany.
“As a premier CAE software provider, Gamma Technologies represents a unique investment opportunity to help drive expansion into new and emerging markets with a market leading business,” said Andrew Balson, Founder and Managing Partner of Cove Hill Partners, who will join the Gamma Technologies Board of Directors. Mr. Balson’s Partner and Co-Founder, Justin Roberts, added, “Importantly, Gamma is led by a strong management team that has positioned the company for continued success and is aligned with our long-term vision for future growth. We are excited to partner with Gamma Technologies’ team and are honored to be investing alongside TA Associates.”
“In seeking to continue executing on our strategic priorities while simultaneously providing continued product innovation and the highest quality of services to our dedicated customer base, we are thrilled to have the opportunity to partner with Cove Hill Partners, a firm that has a long-term oriented approach in their investment philosophy,” said Dr. Thomas Morel, Chief Executive Officer and President of Gamma Technologies. “We are also excited to continue our relationship with TA Associates, which has provided a significant amount of strategic and operational support over the past three years, helping accelerate our growth and strengthen our market position. It is a pleasure to have both long-term focused investment firms as part of Gamma Technologies.”
“Since completing our investment in Gamma Technologies nearly three years ago, the company has successfully scaled its global operations while also expanding into new industry verticals and applications,” said Hythem El-Nazer, a Managing Director at TA Associates and member of the Gamma Technologies Board of Directors. “We are delighted to partner with Cove Hill to build upon Gamma’s strong foundation and industry-leading product innovation.”
Goodwin Procter LLP is providing legal counsel to TA Associates and Gamma Technologies. Ropes & Gray LLP is providing legal counsel to Cove Hill Partners.
About Gamma Technologies
Gamma Technologies, LLC develops and licenses GT-SUITE, a leading multi-physics CAE system simulation software. GT-SUITE includes a complete library of physics-based modeling templates covering fluid flow, thermal systems, mechanics, electrics, magnetics, chemistry and controls. It supports the entire development cycle from concept to validation thanks to its modular architecture, adjustable model fidelity and open interface. GT-SUITE applications include a wide variety of engineering systems such as conventional and hybrid vehicles, powertrains and drivelines, engines, motors, compressors, catalysts, chemistry, acoustics, cooling, thermal management, HVAC, hydraulics, fuel systems, lubrication, and mechanical systems. More information about Gamma Technologies can be found atwww.gtisoft.com.
About TA Associates
Now in its 50th year, TA Associates is one of the largest and most experienced global growth private equity firms. Focused on five target industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in nearly 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in growth companies. TA has raised $24 billion in capital since its founding in 1968 and is investing out of current funds of $7.25 billion. The firm’s more than 80 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA Associates can be found at www.ta.com.
About Cove Hill Partners
Cove Hill is a long-term oriented private equity firm focused on partnering with outstanding management teams to build market-leading technology and consumer companies. The firm manages a long-duration fund with over $1 billion of commitments from its investors and founders. The firm was founded in 2017 by seasoned private equity investors to invest their personal capital alongside a small group of likeminded investors. Based in Boston, Cove Hill has an innovative structure that provides the flexibility to enable a patient, concentrated and value-add approach in a small portfolio of long-term investments. More information about Cove Hill Partners can be found at www.covehillpartners.com.