Fintech player Calypso draws immense interest, the land grab for Managed Service Providers

TA Associates and Clearlake Capital to back Precisely for $3.5 billion

Morning!

Today’s rundown includes another hot sale process in tech, plus a look at the supply-demand imbalance as it goes for private equity’s appetite for managed service providers, or MSPs.

Ten private equity firms are circling the sale process for Calypso Technology, a fintech company backed by Bridgepoint Capital and Summit Partners, sources familiar with the process told PE Hub. First-round bids for the company are due on March 12, the people said.

Calypso, based in San Francisco, provides software that supports trading, risk management, collateral, processing, accounting and compliance for more than 180 financial institutions. Its customers include central banks, asset managers and insurance companies.
Read Milana’s full report to find out who’s in the running.

In other tech news, TA Associates and Clearlake Capital have agreed to back data-integrity business Precisely in a $3.5 billion deal, people familiar with the situation told the Wall Street Journal. Centerbridge Capital, Precisely’s majority owner, will retain a minority stake, the report said.

The deal comes less than a month after PE Hub wrote Precisely was exploring a sale via UBS. Read what sources were anticipating here.

White space: Managed service providers, or MSPs, typically charge a flat fee to automate workstreams, recover data, conduct backups, move operations to cloud and handle IT support service requests for small-and medium-sized businesses. For a lot of MSPs, monthly recurring revenue or MRR is over 50 percent of total revenue; it’s a pricing model revered by PE managers guaranteeing a steady customer base.

But few MSPs are mature enough to be a PE platform; the vast majority are regional, founder-owned business that have yet to scale.

“PE firms have gotten much more aggressive simply because there are only so many of these [sizable MSP] assets left,” said Matthew Gladdish, senior associate at Hyde Park Capital, an investment bank set up by former Raymond James executives.

Check out Karishma’s full story on PE Hub.

That’s it for today! Have a great week, everybody, and in the meantime, hit me up with feedback, tips or just to say hello at springle@buyoutsinsider.com.