Today we’ve got an assortment of investment activity taking place in segments ranging from IT management and custom window coverings to hoof baths that keep cattle milking and money-making. Are you intrigued?
To start, General Atlantic is betting on the explosive growth in demand for IT services stemming from small- and medium-sized businesses, leading an investment round in Atera that values the Israel-based business at $500 million, the firm told PE Hub. GA joins existing investor K1 Investment Management.
Over the past year, Atera — a remote-first IT management company — secured 7,000 clients globally across 90 countries. According to the firm, the technology stack has become “foundational” to SMBs in a way it wasn’t 12 to 24 months ago. The covid-19 pandemic has pulled software innovation and IT trends forward by five years, creating tailwinds for Atera and GA’s other portfolio companies.
“All of our companies are trying to make themselves more efficient through software, and Atera is really playing to the center of that,” General Atlantic managing director Alex Crisses told PE Hub.
The rise of cyber and ransomware attacks has also played a role in the increased demand for IT solutions across companies of all sizes, Gary Reiner, GA operating partner, added. While Atera is not a cybersecurity company, it can spot a cyber issue through its tracking technology that monitors the performance of all connected devices, Reiner explained.
Niche: Here’s something we don’t write about every day… hoof baths for dairy milking cattle. Turns out, there’s a chemical maker with private equity backing doing just that, and it’s consolidating the industry, too.
Specialty Sales, a portfolio company of Benford Capital Partners, is poised to surpass $10 million in EBITDA with the completion of two add-ons also in the hoof-health space – Environmental Technologies and Bovistride – according to a source in the industry.
The concept? Specialty Sales offers free automated hoof bath systems to commercial dairy farms in exchange for exclusive rights to supply treatment chemicals used in the systems.
“Specialty Sales invented the first automated dosing system [roughly] 20 years ago,” Ben Riefe, managing director at Benford, told PE Hub. Putting antiseptic on hoofs used to be a manual process, he explained.
“Hoof diseases are contagious,” Riefe continued. “They spread like a wildfire.” He explained that the preventative healthcare product keeps the herd healthy, milking and generating revenue.
Windows: Clearlake Capital is buying Springs Window Fashions, a global platform manufacturing and selling custom window coverings to retail and commercial customers, as well as independent designers, franchisors, and decorators. The firm said it would fuel growth through both organic and acquisition initiatives.
The investment provides an exit for affiliates of AEA Investor and British Columbia Investment Management Corporation, which backed the Middleton, Wisconsin-headquartered business in June 2018.
The Clearlake team characterized Spring as a compelling opportunity, operating at the intersection of specialty building products, consumer brands, technology solutions, and specialty manufacturing — all industries in which the firm is well versed. Read PE Hub’s brief on the deal here.
That’s it for me! Have a great week ahead everyone, and as always, hit me up at email@example.com with any feedback, tips or just to say hello!