PSG-backed Lumaverse awaits second-round bids

The Canaccord-run process comes as software assets tailored to non-profits and philanthropies grow increasingly popular among private equity firms in the post-covid world.

PSG-backed Lumaverse Technologies, a provider of management and engagement software for non-profits and education, has entered the second round of its sale process, sources told PE Hub.

The company, which is being advised by Canaccord Genuity, received first-round bids a few weeks ago, and second-round bids are due “soon,” the sources said.

Lumaverse, based in Charlotte, North Carolina, comprises a suite of software solutions that help solve volunteer, member, event and fundraising management challenges.

The company’s products and solutions cover the following areas: CRM for nonprofits; parent engagement for K-12 schools; online sign-ups, appointment scheduling, course registration and directory service; and peer-to-peer crowdfunding.

Those offerings, including SignUpGenius, NonProfitEasy, TimeTap, Fundly, Membership Toolkit, AtoZConnect, Learning Stream and GoSignMeUp, operate as standalone brands under the Lumaverse umbrella. However, the independent titles are being increasingly integrated into a suite.

Lumaverse expects to generate more than $27 million in revenue and over $13 million in EBITDA in 2021, the sources said.

First-round bids valued the company between 11x and 13x EBITDA, one of the sources said. However, another source indicated that bids came in higher, above 14X EBITDA, valuing the company at more than $140 million.

Providence Strategic Growth, or PSG, initially invested in the business in July 2017 through an investment in one of its current products, SignUpGenius, which provides online sign-up technology. In June 2020, PSG announced a launch of Lumaverse Technologies as a platform to house existing portfolio companies like SignUpGenius, among other software providers focused on the non-profit and education sectors.

The process comes as software assets tailored to non-profits and philanthropies grow increasingly popular among private equity firms in the post-covid world.

Consider Vista Equity-backed Social Solutions. The provider of performance management software for the public sector and human service organizations launched its sale process earlier this month, PE Hub wrote.

On the acquisition front, Apax Partners acquired CyberGrants, a provider of Software-as-a-Service solutions for corporate philanthropy, including workplace giving, employee engagement and grants management.

PSG and Lumaverse declined to comment. Canaccord did not respond to PE Hub’s request for comment.