Goldman Sachs-backed Information Builders kicks off sale process

Shea & Co, a Boston boutique investment bank specializing in software M&A, is advising the company on its sale.

Goldman Sachs Private Capital has officially kicked off a sale process for Information Builders, a business intelligence and data analytics software company, four sources familiar with the situation told PE Hub.

The firm received first round bids about 10 days ago, the people said.

Shea & Co, a Boston-based boutique investment bank specializing in software M&A, is advising the company on its sale, the sources said.

PE Hub first reported on the adviser engagement in March.

Information Builders develops business intelligence tools and provides software services including embedded analytics, performance management, artificial intelligence, machine learning, data integration and management services. The company aims to enable businesses to access and analyze data in real-time, leading to improved business processes and performance.

The company expects to produce around $170 million in revenue in 2020, the people said.

Some sources noted that the company produces $25 million in adjusted EBITDA, while others said the company’s EBITDA is flat.

It’s unclear how covid-19 impacted the company’s performance. However, back in March, sources placed Information Builders’ revenue at nearly $230 million.

Goldman Sachs’ private equity arm initially invested in the New York City-based company in May 2017 out of its GS Growth strategy. Bregal Sagemount, a software-focused investment firm, also participated in the funding round.

GS Growth, which has $8 billion in AUM, invests in high-growth companies within enterprise software, fintech, consumer and healthcare industries. GS Growth targets investments of $20 million to $250 million.

A recent Bloomberg report also suggests that Goldman Sachs is pondering a $2 billion venture and growth fund that could boost its stature in the world of technology investing.

Goldman Sachs, Shea & Co, and Information Builders did not return PE Hub’s requests for comment.

Action Item: Read PE Hub’s previous coverage on Information Builders.