Docutech, a provider of compliance and documentation technology, is weighing a sale, five sources said.
The Idaho Falls, Idaho, company is not on the block right now, two of the sources said. Docutech recently hired Raymond James after receiving inbound interest, the people said. An official process will likely come later in 2019 or early next year, the sources said.
Raymond James is also advising on potential acquisitions Docutech may make as part of a tuck-in strategy, the people said.
It’s unclear how much Docutech could sell for.
Ty Jenkins launched Docutech in 1991 with the aim of simplifying the mortgage loan documentation process. The company provides services such as eClose, eSign, and print fulfillment to help lending professionals produce accurate loan packages and ensure regulatory compliance. Jenkins, chairman of Docutech, owns a majority, one of the sources said.
Serent Capital acquired a minority stake in Docutech in July 2016. Serent and other investors provided $39.9 million in development capital, PitchBook said.
Partners Kevin Frick and David Kennedy launched Serent in 2008. With offices in San Francisco and Austin, Serent is a lower middle market PE firm. It invests in technology and services businesses. In 2017, Serent raised $572 million for its third fund. The firm’s prior fund, Serent Capital II LP, collected $350 million.
Serent declined comment. Executives for Raymond James and Docutech could not be reached for comment.
Action Item: See Serent Capital’s latest form ADV here.