Strattam Capital-backed Blacksmith Applications is set to acquire TABS Analytics, sources familiar with the deal told PE Hub.
The company signed an agreement for the add-on at a nearly $70 million value, the people said.
Marlin & Associates acted as sell-side financial adviser to TABS.
Blacksmith Applications, based in Lawrence, Massachusetts, provides trade promotion management software for consumer packaged goods (CPG) manufacturers. The company is led by founder and CEO Paul Wietecha, who will retain a significant ownership stake.
According to one of the sources, TABS, based in Shelton, Connecticut, is one of the leading providers of marketing and data analytics for the CPG industry, offering complementary technology to Blacksmith, which is set to enhance its marketing capabilities.
The company produces between $20 million and $30 million in revenue and is profitable, the people said.
Strattam Capital acquired its majority interest in Blacksmith in April 2016. The firm has grown the company through several add-ons in the period since.
In August 2019, Blacksmith acquired Food Sales Enablers and T-Pro Solutions. In 2018, the company added GoSimple.
The Austin, Texas, firm invests in mid-market, founder-led software businesses and has a history of backing enterprise resource planning (ERP) and point solutions businesses including MHC Software, Blacksmith Applications and Trax Technologies.
Most recently, in October, Strattam acquired NETSTOCK, a provider of inventory planning and optimization software for small- and mid-sized enterprises.
The firm is investing out of Strattam Capital Fund II, which closed on $230 million in February 2019.
Strattam Capital and TABS Analytics declined to comment. Blacksmith Analytics did not respond to PE Hub’s request to comment.