Providence Strategic Growth to put Evercommerce on the block

  • Evercommerce started in ’05 as PaySimple
  • PSG invested $115 mln in PaySimple in 2016
  • PSG Fund III raised $1.3 bln in 2018

Providence Equity Partners is putting Evercommerce up for sale, three sources said.

The PE firm hired Goldman Sachs to advise on the process, the people said. Evercommerce, Denver, offers software and payment services to businesses to help them streamline marketing, business management and customer retention.

How much Evercommerce could fetch is unclear. One banker, not one of the sources, said the company could easily sell for $500 million. Another person, one of the three sources, said Evercommerce produces about $100 million EBITDA and may be valued at $1.2 billion to $1.5 billion.

Valuations are “all over the place,” a third person said.

Evercommerce started out in 2005 when it was known as PaySimple. At that time, the company helped landlords collect rent.

Susquehanna Growth Equity invested in PaySimple in 2011. It exited five years later, in 2016, when Providence kicked in $115 million. The investment came from Providence’s strategic growth fund, PitchBook said.

Since then, Evercommerce has been very acquisitive, buying up more than 13 companies, including Perennial Software, Bold Technologies, improveit360 and profit rhino. 

Providence Strategic Growth is the lower-middle-market growth fund of Providence Equity Partners. PSG’s third pool closed on $1.3 billion in June. The firm’s second fund collected $640 million in December 2016.

Providence Strategic makes both majority and minority investments. It typically invests $5 million to $50 million equity per deal, Buyouts reported.

Evercommerce is the latest holding for Providence’s growth unit to go up for sale. Blackboard Inc is currently selling Cashnet, which provides electronic billing, payments and student payment plan services for more than 700 campuses. Blackboard, a PSG portfolio company, is seeking $800 million for Cashnet.

Earlier this month, Providence Strategic Growth sold YourCause to Blackbaud for about $157 million.

Goldman declined comment. Providence and Evercommerce could not be reached for comment.

Action Item: For more information check out: www.evercommerce.com