Hg and TA Associates are preparing to sell Mitratech, a highly anticipated software provider for legal and governance, risk and compliance (GRC) professionals, sources familiar with the firms’ plans told PE Hub.
Hg, a majority stakeholder, and TA, a minority backer, have plans to put Mitratech on the block either in the first or second quarter, the people said.
There is no banker mandated on the process, but, according to sources, the sellers expect to make their selection early next year.
Mitratech, based in Austin, Texas, is a software technology provider for legal and corporate legal, risk and compliance professionals. The company aims to raise productivity, control expense and mitigate risk by deepening organizational alignment, increasing visibility and spurring collaboration across the enterprise.
Mirtatech works with 1,500 client companies of all sizes across the globe, representing 30 percent of the Fortune 500 and more than 500,000 users in over 160 countries, the company said on its website.
The software provider generates north of $60 million in EBITDA and around $150 million in revenue, the people said. Nearly 90 percent of the company’s revenue is recurring, they added.
The company has grown organically and through multiple acquisitions, many of which were in Europe.
In the last 12 months, Mitratech acquired Acuity ELM, a provider of SaaS e-billing, matter management and claims defense; INSZoom, a provider of immigration case management services; CMPG Risk Solutions, software provider for the financial services, healthcare and insurance industries; and California-based software maker Tracker Corp, provider of legal and compliance software.
Mitratech is one of the highly awaited software assets expected to come to market in the new year, PE Hub learned from multiple sources who focus on technology.
The company has received interest from strategics like Thomson Reuters and Wolters Kluwer, as well as from PE firms, the sources said.
Mitratech has a history of PE backing. Vista Equity in 2011 invested in the company, which was founded in 1987.
In September 2015, TA bought Vista’s stake in Mitratech to become a majority owner. That sale valued the company at north of $300 million, providing an 8.7x return to Vista Equity, Reuters reported at that time.
Less than two years later, in 2017, TA sold the majority stake to Hg, retaining a minority position. TA made more than 3x its money on the exit at that time, sources told PE Hub.
Aside from Mitratech, Hg and TA Associates have a history of working together as partners on a other software assets.
The firms are investors in Sovos Compliance, a software developer and provider of tax compliance and business-to-government reporting technology. TA invested in Hg-backed Sovos in August, valuing the company between $2.5 billion and $3 billion, PE Hub previously reported.
TA and Hg are also invested in Access, provider of integrated business application software to middle-market companies.
Overall, the compliance space has seen significant PE interest and activity in 2020.
Last week, PE Hub reported that Thoma Bravo was preparing to put Riskonnect, a risk management solution for compliance management, up for sale.
In November, PE Hub reported that growth equity firm Bregal Sagemount was exploring the sale of management software provider Steele Compliance.
Clearlake Capital in August acquired Diligent Corporation, a global software governance company, from Insight Partners.
Hg declined to comment. TA Associates and Mitratech did not return PE Hub‘s requests for comment.