Genstar Capital and GI Partners have recapitalized Daxko, a software and integrated payments provider for the health, fitness and wellness industry. No financial terms were disclosed. Credit Suisse Securities (USA) LLC and William Blair & Company LLC acted as financial advisors to Daxko. Ropes & Gray served as legal advisor to Daxko and GI Partners while Kirkland & Ellis served as legal advisor to Genstar Capital.
BIRMINGHAM, AL and DENVER, October 19, 2021 – Daxko, the health, fitness, and wellness industry’s leading software and integrated payments provider, announced today a recapitalization of the company by Genstar Capital and existing investor GI Partners, both of whom have deep investment and operational expertise in the software and payments sectors. The investment supports Daxko’s accelerated innovation in product development, customer support, sales and marketing, and strategic acquisitions.
Daxko provides mission-critical membership management software and integrated payment solutions to member-based health and wellness organizations. The company serves large health clubs, boutique fitness studios, YMCAs, and JCCs with products to help its customers with daily operations and member management. During GI Partners’ ownership, Daxko has invested in growing the business, offerings, and employee base in service of delivering a quality experience to both customers and their members.
Ron Lamb, CEO of Daxko, said, “Daxko is the leading integrated software and payments provider to the health and wellness industry and our software is the lifeblood of our customers’ daily operations. Our end-to-end platform offering continues to expand from attractive organic growth initiatives as well as ongoing execution of our proven acquisition strategy. We have worked closely with GI Partners who have supported us and helped make meaningful enhancements to the business. We now look forward to also partnering with Genstar to further transform the offerings we provide customers as Daxko progresses as an unrivaled leader in the industry.”
Travis Pearson and Sendil Rajendran of GI Partners, commented, “Daxko’s product portfolio is uniquely positioned across the full customer continuum, serving multi-purpose fitness centers as well as boutique operators. We have worked with the management team to help their customers’ members lead healthier lives and are pleased to re-invest in Daxko alongside Genstar to help develop and deliver new products that will further build out Daxko’s suite.”
Eli Weiss and Rob Clark of Genstar Capital, said, “Daxko operates in the dynamic and growing health and wellness software market, and we are very excited by the ability of its software solutions to help customers re-evaluate their operations, develop new strategies, and better engage their members. We see further significant opportunity to penetrate markets globally and look forward to partnering with Daxko and the GI Partners team to further effect change that will benefit Daxko, its customers, and employees.”
Credit Suisse Securities (USA) LLC and William Blair & Company LLC acted as financial advisors to Daxko. Ropes & Gray served as legal advisor to Daxko and GI Partners. Kirkland & Ellis served as legal advisor to Genstar Capital.
Daxko delivers comprehensive technology solutions, integrated payment processing, experienced services and deep insights to all kinds of health and fitness centers—enterprise health clubs, boutique fitness studios, affiliate gyms, campus recreation facilities, integrated wellness centers, YMCAs, and JCCs. Since 1998, the company has grown to serve customers spanning 55 countries, nearly 19,000 facilities, and over 25 million+ members. For more information, please visit www.daxko.com.
About Genstar Capital
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar currently has approximately $33 billion of assets under management and targets investments focused on targeted segments of the software, financial services, industrials, and healthcare industries.
About GI Partners
Founded in 2001, GI Partners is a leading private investment firm with over 100 employees based in San Francisco, California, with offices in New York, Chicago, Greenwich, and Scottsdale. The firm has raised over $29 billion in capital from leading institutional investors around the world to invest in private equity, real estate, and data infrastructure strategies. The private equity team invests primarily in companies in the software, healthcare, IT infrastructure, and services sectors. The real estate team focuses primarily on technology and life sciences properties as well as other specialized types of real estate. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information, please visit www.gipartners.com.