One Equity Partners has generated 12x on the sale of NuArx four years after the security and compliance software business was spun out from another portfolio company, a source familiar with the matter said.
OEP said Wednesday it had completed the sale of NuARX to Sysnet Global Solutions, a cyber-security and compliance company backed by FTV Capital and True Wind Capital.
Financial terms weren’t disclosed and OEP declined to comment.
The deal concludes a Truist Securities-run sale process that drew interest from both strategics and sponsors, the source told PE Hub. A strategic combination – whether NuArx was ultimately the buyer or seller – was always deemed the most likely outcome, with the business having attracted inbound interest for a couple years now, the person said.
NuArx sits well-positioned to help retailers achieve compliance and protect their brands as merchants of all sizes face increasing cyber-security threats around customer information or other potential breaches of data.
Headquartered in Southfield, Michigan, NuArx provides integrated managed security and PCI (payment card industry) compliance software to more than 100 leading retail businesses – primarily restaurant brands such as Little Caesars, Wendy’s, Five Guys and Popeyes.
NuArx’s subscription-based Software-as-a-Service helps ensure customers receive training and certify that their businesses manage payment data securely and in a PCI-compliant way.
NuArx’s inception as an independent entity dates to May 2016, when OEP partnered with management to spin the business out from ANX, amid the latter’s sale to OpenText.
Not including the potential gain on its majority stake in NuArx, OEP after a 10-year-hold was set to make 3x its money on the $100 million sale of ANX, a source told Buyouts at the time.
The firm paid about $35 million to buy ANXeBusiness in 2006, following which OEP supported five add-on acquisitions. At the time of the ANX sale, NuArx was growing rapidly and OEP opted to capitalize it separately as a growth equity play, investing into the operating expenses of the company.