Harvest Partners and Investcorp have recapitalized PRO Unlimited, a provider of software and managed services to large companies. No financial terms were disclosed. BofA Merrill Lynch and SunTrust Robinson Humphrey served as financial advisers to PRO Unlimited on the transaction while William Blair did likewise for Harvest Partners.
NEW YORK – April 7, 2017 – Harvest Partners, a leading middle-market private equity firm, and Investcorp, a global provider and manager of alternative investment products, today announced the recapitalization of PRO Unlimited (“the Company”). As part of the transaction, Investcorp will re-invest in the Company, taking a minority stake in the new capital structure. Financial terms of the transaction were not disclosed.
PRO Unlimited is one of the fastest growing providers of software and managed services to large enterprises enabling its clients to more effectively manage their contingent workforce. Since its founding in 1991, all of PRO Unlimited’s growth has been organic. A pioneer in purely vendor-neutral contingent workforce management, PRO Unlimited services are vastly enhanced by its industry leading vendor management software services.
Andrew Schultz, Founder and Chief Executive Officer of PRO Unlimited said, “We are excited to work closely with Harvest Partners as this new partnership will allow us to continue executing against our growth trajectory. Investcorp has been a valuable strategic and financial partner, providing us with the platform to expand our software and solutions globally, and we are pleased that they will remain involved as we enter this new phase of the business.”
“We acquired PRO Unlimited because we knew the Company had significant growth potential given the strong secular tailwinds and its leading market position,” stated Maud Brown, Managing Director of Corporate Investment North America at Investcorp. “We worked closely with the Company’s committed management team to grow the business, focusing on new enterprise client wins and key investments in technology, marketing and sales. We continue to have conviction in the long-term market trends and look forward to building upon our relationship with PRO Unlimited and partnering with Harvest to capture additional opportunities.”
Andrew Schoenthal, Senior Managing Director at Harvest Partners said, “We are excited to partner with the PRO Unlimited team to provide additional financial and strategic resources to continue to build on a long track record of successful growth. PRO Unlimited’s vendor-neutral MSP and VMS software provides the most compelling solution to large corporations seeking to more effectively and economically manage their contingent workforce.” Ira Kleinman, Senior Managing Director at Harvest Partners added, “PRO Unlimited fits perfectly with our investment philosophy of backing first class management teams managing first class companies who provide proven, value-added outsourced services to corporations. Harvest Partners looks forward to deploying our industry expertise, financial resources, and extensive network to elevate PRO Unlimited as the Company continues to gain market share.”
The transaction is expected to close in May 2017 subject to customary corporate approvals.
BofA Merrill Lynch and SunTrust Robinson Humphrey acted as financial advisors to PRO Unlimited, and William Blair acted as financial advisor to Harvest Partners. Investcorp’s legal advisor was Gibson Dunn & Crutcher, and Harvest Partners’ legal advisor was White & Case. Ira Kleinman, Andrew Schoenthal, and David Schwartz from Harvest Partners will join David Tayeh, Maud Brown and Warren Knapp on the Board of Directors of PRO Unlimited.
About PRO Unlimited
PRO Unlimited, through its purely vendor-neutral Managed Services Program (MSP) and Vendor Management Software (VMS) solutions, helps organizations address the costs, risks, and quality issues associated with managing a contingent workforce. A pioneer and innovator in the VMS and MSP space, PRO offers solutions for e-procurement and management of contingent labor, 1099/co-employment risk management, and third-party payroll for client-sourced contract talent.
About Harvest Partners
Founded in 1981, Harvest Partners is a leading New York-based private equity investment firm that pursues management buyouts and recapitalizations of middle market companies in North America. Harvest focuses on acquiring profitable companies in the business services, consumer, healthcare services, and industrial sectors. This strategy leverages Harvest Partners’ 35+ years of experience in financing organic and acquisition-oriented growth companies. For more information, please visit www.harvestpartners.com.
Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). Investcorp focuses on generating investor and shareholder value through a disciplined investment approach in four lines of business: corporate investment, real estate, alternative investment solutions (formerly known as hedge funds), together with the recently added credit management business. Investcorp employs approximately 390 people across its offices in New York, London, Bahrain, Saudi Arabia, Abu Dhabi and Singapore.