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Lightyear, Insight Agree to Sell ARGUS Software for $130 Mln

Lightyear Capital, along Insight Venture Partners, has agreed to sell ARGUS Software to Altus Group for $130 million. The deal is expected to close in second quarter. Lightyear, a New York PE firm that focuses on financial services, invested in Realm Business Solutions in 2006 which it then renamed ARGUS.

PRESS RELEASE

Lightyear Capital LLC (“Lightyear”), a private equity firm that focuses on financial services, today announced that Lightyear, along with co-owner Insight Venture Partners, has entered into a definitive agreement to sell ARGUS Software, Inc. (“ARGUS”) to Altus Group Limited (TSE:AIF) for $130 million.   Through its affiliated investment fund, The Lightyear Fund, L.P., Lightyear invested in Realm Business Solutions Inc. in 2006, which was renamed ARGUS Software, Inc.

Lightyear identified ARGUS as a company with strong management, significant growth opportunities and an attractive recurring revenue business model as part of its financial technology sourcing activities.  Since Lightyear’s investment, ARGUS completed two acquisitions that broadened its product offerings and geographic reach and divested a non-core business to enhance its growth. Additionally, ARGUS increased its penetration in international markets, growing non-U.S. revenue from approximately 10% of total revenue in 2006 to over 30% in 2010. ARGUS also developed next-generation technology, ARGUS Enterprise, to enable the world’s largest owners of commercial real estate to manage investment performance at a portfolio level.

“ARGUS’s senior leadership team did an exceptional job managing through the significant downturn in the commercial real estate markets over the past few years and continued to invest in new products while maintaining a high level of profitability,” said Donald B. Marron, Chairman of Lightyear. “We believe that under Lightyear’s ownership, ARGUS’s management successfully positioned the firm for the future and this deal represents sustained momentum in Lightyear’s financial technology investing activities.”

ARGUS Software, Inc. is a leading financial technology solutions provider for commercial real estate asset valuation and operations management. ARGUS provides software and services to leading commercial real estate companies, enabling them to better manage the financial and operational performance of their real estate portfolios and to improve the flow of information throughout their critical business processes.

Altus Group is the leading multidisciplinary provider of independent real estate consulting and professional advisory services worldwide. With a staff of more than 1,700, Altus Group has a network of more than 70 offices in 14 countries worldwide, including Canada, the United Kingdom, Australia, Asia and the United States.

The deal is expected to close during the second quarter of 2011, pending the satisfaction of closing conditions including regulatory approval.

About Lightyear Capital

Lightyear Capital is a leading private equity firm making primarily control investments in North America-based, middle-market financial services companies. Based in New York, Lightyear, through its affiliated funds, has managed approximately $3 billion of committed capital with investments across the financial services spectrum, including asset management, banking, brokerage, financial technology, insurance, and specialty finance. Lightyear brings unique strengths and discipline to its investment process, as well as operating, transaction, and strategic management experience, along with significant contacts and resources beyond capital. The senior team of professionals averages over 25 years of financial services-related experience and includes Chris Casciato, David Cynn, Michael Doppelt, Stewart Gross, Thierry Ho, Donald Marron, Richard Sterne, and Mark Vassallo.