Happy Wednesday, dear Tech Take readers!
We’re seeing a number of tech processes coming to fruition, and I’m hearing about just as many that are prepping to launch post Labor Day. It seems that as some deals are getting done, other investors are gaining more confidence in the market to pursue exits again. Equity markets have also boosted IPO talks amongst sponsors, I’m hearing.
One process that has been on my radar for some time has just realized a new investment from TA Associates. I’m talking about Sovos Compliance, which recently scored a capital injection from its existing owner, Hg, alongside TA as a new minority investor.
The joint investment, the majority of which is coming from Hg, has valued the company between $2.5 billion and $3 billion, sources familiar with the deal told me. TA is set to help Hg add more capabilities to Sovos and accelerate its existing double-digit growth through additional M&A, they said.
“One thing that the firms are thinking about is adding an additional pillar to the company,” one source said. “They’ve got compliance, Form 1099, and they can potentially go into other adjacent areas. They’ve got deep pockets to try and drive that further.”
Speaking of highly active investors… TA has been particularly busy this year, through the downturn.
Most recently, the firm invested in Ivanti, backed by Clearlake Capital, valuing the software provider at more than $2 billion, sources told PE Hub.
The firm also sold a part of Aptean to Charlesbank, bringing the company’s valuation to more than $2 billion, according to sources.
Last month, TA and Francisco Partners joined hands in a $1.4 billion deal for healthcare IT provider Edifecs, PE Hub wrote.
Any other active investors we should put on our radar?
StepStone: StepStone Group has filed with the SEC to raise up to $100 million in an initial public offering. The alternative investment manager intends to list on the Nasdaq Global Select Market under the symbol STEP. Check out the firm’s S-1 filing.
Another Blackstone healthcare deal: Blackstone Tactical Opportunities will be investing $275 million in Cryoport to support two new acquisitions in the cell and gene therapy supply chain. Read our brief and stay tuned for more coverage this week.
Drama: Just as California Public Employees’ Retirement System appears poised to carry on with its $80 billion leverage plan following the abrupt resignation of its chief investment officer, board member Margaret Brown is demanding private equity investment activity pause until what happened is fully accounted for, Justin Mitchell at Buyouts reports.
Former CIO Ben Meng resigned August 5. Check out Buyouts’ coverage for more on the latest developments.
Request for all PE Hub readers: We’re building a database of all PE-backed companies fighting covid-19. Have any of your portfolio companies retooled their daily operations to help flatten the curve? Drop email@example.com or firstname.lastname@example.org a line with the company name, PE firm and how have they have altered things.
Correction: Yesterday we mistakenly characterized Mill Rock Capital’s new platform, Mill Rock Packaging Partners LLC, as a SPAC. Mill Rock Packaging is not a SPAC, but a new platform formed to invest in growth-oriented companies with advanced service and product capabilities in the specialty packaging industry.
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