Goldman Sachs Private Capital is preparing to sell Information Builders, a business intelligence and data analytics software company, six sources familiar with the process told PE Hub.
The process is expected to kick off in Q2, the people said.
Shea & Company, a Boston-based boutique investment bank specializing in software M&A, is advising the company on its sale, the sources said.
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 generates nearly $230 million in revenue, the sources said. Four sources noted that the company is growing slowly and is “barely profitable.”
Although the process has yet to launch, one source speculated that the deal could value the company at up to $500 million or so.
The company recently went through a turnaround of its senior leadership.
In January 2018, the company appointed Frank Vella as its new CEO, replacing Gerald Cohen, who as Information Builders’ founder has led the company since 1975. Cohen continues to be involved with the company as its senior adviser and chairman of the board.
In the past two years, Information Builders has revamped its new WebFOCUS BI and analytics platform and redesigned its go-to market strategy to bring more sales through channel partners.
The company’s technology is on the “older” side compared with its competition, but at the same time, has an impressive customer list, one source noted.
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 along with Goldman.
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.
Last month, Goldman Sachs Private Capital took a hit. The two co-chiefs, Sumit Rajpal and Andrew Wolff, departed from the merchant bank, which invests the firm’s clients’ money.
Goldman Sachs Private Capital and Shea & Co declined to comment. Information Builders did not return PE Hub’s request for comments.
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