TA sells Procare Software to Warburg

Warburg Pincus, one of the oldest private equity firms, confirmed its investment in Procare Software.

The New York firm did not disclose terms or how much of Procare it would own. Buyouts reported last month that Warburg was buying Procare for $550 million.

TA Associates, the seller, said it would retain a stake in the company along with management.

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

TA invested in Procare more than three years ago, in May 2015. The firm’s last flagship, its 12th, raised $5.3 billion that year.

The deal is the latest for Warburg, a PE firm that was founded in 1966. Warburg in July agreed to buy agreed Leumi Card for 2.5 billion shekels ($684 million).

That transaction follows recent investments in BitSight, Ant Financial, Reorg Research, Vivtera, IndiaFirst Life, Self Bank and Constructionline.

Warburg is gearing up to raise its next flagship fund, targeting $13.5 billion, Buyouts reported in May. The firm is investing out of its 12th buyout fund, which closed on more than $12 billion in third-party commitments in 2015.

At the same time as the Warburg transaction, Procare said it agreed to buy Cirrus Group, an SaaS provider of operational, financial and customer management software for childcare centers, school districts and community education centers. Terms weren’t disclosed.

William Blair advised TA/Procare.

TA declined comment. Warburg and Procare could not be reached for comment.

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