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TA Associates in discussions to sell Procare to Warburg: sources

  • TA acquired majority of Procare in May 2015
  • Blair advised on Procare auction: sources
  • Warburg in December raised $2.3 bln for financial-services fund

Warburg Pincus is in talks to buy Procare Software from TA Associates, four sources said.

Warburg is paying $550 million, one of the people said.

Procare, Medford, Oregon, provides child-care-management software for more than 30,000 child-centered businesses including day-care companies, preschool programs and drop-in centers.

Mary Armstrong, a Warburg spokeswoman, declined comment.

TA put Procare up for sale earlier this year; William Blair advised on the process, people said.

Rumors of Procare’s sale have been brewing for weeks. Procare was in talks to sell to a large buyout shop for a “big number,” sources said.

If finalized, the deal would be the latest buy for Warburg. The New York firm has been on an acquisition tear, with recent investments including BitSightAnt Financial, Reorg Research, Vivtera, IndiaFirst Life, Self Bank and Constructionline.

Warburg is investing out of its 12th buyout fund, which closed on more than $12 billion in third-party commitments in 2015.

The firm is gearing up to raise its next flagship fund targeting $13.5 billion, Buyouts reported in May. Warburg in December also collected $2.3 billion for a financial-services fund.

For TA, the sale represents the end of a three-year hold. TA invested in Procare in May 2015.

It wasn’t clear how much TA spent but the firm acquired a majority of Procare. The software company has been active, buying SchoolLeader in May and KidReports in December.

TA declined comment. Procare and Blair could not immediately be reached for comment.

Action Item: Contact JoAnn Kintzel, Procare CEO, at jzkintzel@procaresoftware.com