Thomas H. Lee Parthers has acquired a majority stake in AbacusNext from PSG. No financial terms were disclosed. AbacusNext is a vertical SaaS provider for legal, accounting and compliance-focused professionals.
SAN DIEGO & BOSTON–(BUSINESS WIRE)–AbacusNext, a leading vertical SaaS provider for legal, accounting and compliance-focused professionals, and Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm investing in growth companies, today announced that funds affiliated with THL have acquired a majority stake in AbacusNext from PSG, a leading growth equity firm partnering with lower middle-market software and technology-enabled service companies. AbacusNext will continue to be led by its Chief Executive Officer, Scott Johnson, and the other members of the company’s senior management team.
“We are excited to partner with THL, who offers deep expertise in practice management software and payment processing and shares our commitment to driving AbacusNext’s next chapter of growth,” said Johnson. “This partnership with THL will enable us to accelerate our investment in innovative SaaS products with integrated payment processing, allowing us to continue to offer a market-leading software suite. Thank you to PSG for their support as we grew to become a leader in the legal and accounting markets.”
“The shift to cloud-based software is well underway and has accelerated in the current ‘work from home’ environment. Scott and the management team at AbacusNext are leaders in capitalizing on this growth opportunity. We are excited to see AbacusNext continue to develop best-in-class technology and pursue strategic acquisitions that will further enhance their product offering,” said Mark Bean, Director at THL and Ganesh Rao, Managing Director and Head of Financial Services at THL.
“Throughout our partnership together, AbacusNext has firmly established its position as a leading software solutions provider in the legal, accounting and compliance-focused professionals’ services market” said Matt Stone, Managing Director at PSG. “We’re grateful to have had the opportunity to partner with AbacusNext and would like to thank their entire team, particularly CEO Scott Johnson, COO Rob Ellis and CFO Mike Skelly, for their dedication and hard work over our partnership together, and we’re excited to see what they will accomplish next.”
William Blair and Weil, Gotshal & Manges LLP acted as financial and legal advisors to AbacusNext in connection with the transaction. Kirkland & Ellis acted as legal advisor to THL. Terms of the transaction were not disclosed.
AbacusNext is a leading vertical SaaS provider for compliance-focused professional services markets. Our purpose-built cloud infrastructure puts customers’ business data and vital applications into a virtual workspace that is accessible anywhere, anytime and from any device, enabling small and midsize legal and accounting firms to grow an efficient, secure, client-focused practice.
More than 100,000 users worldwide benefit from the most complete product portfolio in the industry, including practice management and case management solutions, tailored cloud options, document automation and payment processing. To learn more visit www.abacusnext.com.
About Thomas H. Lee Partners, L.P.
Thomas H. Lee Partners, L.P. (“THL”) is a premier private equity firm investing in middle market growth companies exclusively in three sectors: Financial Services, Healthcare and Technology & Business Solutions. THL couples deep sector expertise with dedicated internal operating resources to transform and build great companies of lasting value in partnership with management. The Firm’s domain expertise and resources help to build great companies with an aim to accelerate growth, improve operations and drive long-term sustainable value. Since 1974, THL has raised more than $25 billion of equity capital, invested in over 150 companies and completed more than 400 add-on acquisitions representing an aggregate enterprise value at acquisition of over $200 billion. For more information on THL, please visit www.THL.com.
PSG is a growth equity firm that partners with lower middle-market software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed more than 65 companies and facilitated over 275 add-on acquisitions, PSG brings extensive investment experience, deep expertise in software and technology, and a firm commitment to collaborating with management teams. Founded in 2014, PSG operates out of offices in Boston, Kansas City and London. To learn more about PSG, visit www.psgequity.com.