GTCR is exploring options, including a sale, for Park Place Technologies after a four-year hold, three sources familiar with the process told Buyouts.
UBS is advising GTCR on the transaction, the sources said.
One possible scenario calls for the Chicago private equity firm to sell a 30 to 50 percent chunk of the company, two of the sources said. The company generated $80 million to $90 million Ebitda, they said.
GTCR acquired Park Place for $290 million in December 2015, Moody’s said. WestView Capital was the seller. The funds came out of GTCR Fund IX, which closed on $2.75 billion in 2016, the firm’s website shows.
Since the acquisition, the company has been growing through add-ons, adding 11 companies to its platform. Most recently, in April, Park Place bought MCSA Group Ltd, the U.K. IT services and solutions provider.
Park Place Technologies, Cleveland, provides a post-warranty alternative to storage, server and networking hardware maintenance for IT data centers. The company serves more than 16,000 organizations in 141 countries. Customers include Dell, Cisco, Oracle, IBM and Hewlett Packard Enterprise, among others. Park Place produced about $185 million revenue in 2017, the credit-rating company said.
In 2018, Park Place paid out a roughly $133 million dividend to its financial sponsors, Moody’s said at the time.
GTCR focuses on sectors including financial services and technology, healthcare, technology, media and telecom and growth business services industries. In October 2017, the firm raised its 12th buyout fund, which closed on $5.25 billion, exceeding its $4.5 billion target.
A spokesperson for GTCR declined comment. Park Place could not immediately be reached for comment.
Action Item: Contact GTCR’s investment team at +1 312-382-2200.
UPDATE: The story has been changed to include information about Park Place’s EBITDA