Pamlico Capital has exited its investment in TMW Systems Inc., selling the company to Trimble Navigation Ltd. for $335 million in cash. Pamlico acquired TMW, provider of enterprise software to transportation and logistics companies, in 2005. One source familiar with the transaction said Pamlico’s 11x cash-on-cash return was equivalent to a $200 million gain on the deal.
Pamlico Capital (“Pamlico”) today announced the sale of TMW Systems, Inc. (“TMW” or the “Company”) to Trimble Navigation Limited (“Trimble”) for $335 million in cash. Founded in 1984, TMW is a leading provider of enterprise software to transportation and logistics companies in North America.
Pamlico acquired TMW from the Company’s founder in 2005 and has spent the past seven years supporting the company to foster rapid growth. During its ownership period, Pamlico recruited and hired the current CEO, Dave Wangler, and assisted the company with five acquisitions. In addition, TMW has dramatically expanded its addressable market by launching new products and services and targeting new segments of the transportation industry. During Pamlico’s ownership, TMW has grown annual revenue from approximately $25 million to approximately $96 million today.
“Pamlico helped TMW scale and grow into a leading provider of enterprise software to the transportation industry,” said Dave Wangler, TMW’s Chief Executive Officer. “We have truly enjoyed our partnership with Pamlico and want to thank them for their support and confidence in us.”
“TMW was a tremendous investment for Pamlico and our limited partners. Dave Wangler and his team did an outstanding job of generating strong organic growth and enhancing the company’s position as a leader in the transportation technology market,” said Walker Simmons, a Partner at Pamlico.
“We believe Trimble will be a strong strategic partner for TMW, its employees, and its customers going forward and we wish them continued success,” added Pamlico Partner Scott Stevens.
TMW and Pamlico were advised by William Blair & Co. (financial advisor) and King & Spalding LLP (legal advisor). Trimble was advised by Lazard (financial advisor) and Weil Gotshal & Manges LLP (legal advisor).
About Pamlico Capital
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in the U.S. Pamlico Capital seeks control-oriented growth equity and buyout investments of up to $75 million alongside proven management teams in its target industries, business & technology services, communications, and healthcare. The firm, based in Charlotte, NC, currently manages over $2 billion in assets.