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TA to make 4.5x its money on Mitratech sale

In connection with the pending transaction, Hg will realize a 2.5x return on its initial investment.

TA Associates is poised to make 4.5x its money on the sale of Mitratech to Ontario Teachers’ Pension Plan, sources familiar with the matter told PE Hub.

The firm in 2015 acquired a majority stake in Mitratech, a legal and compliance software provider, from Vista Equity Partners. Hg became a majority owner in 2017.

In connection with the pending sale, Hg will realize a 2.5x return on its initial investment.

Mitratech, based in Austin, Texas, is a software provider for legal and corporate legal, risk and compliance professionals. The technology company aims to raise productivity, control expense and mitigate risk by deepening organizational alignment, increasing visibility and spurring collaboration across the enterprise.

PE Hub first reported in December that TA and Hg planned to sell Mitratech in early 2021.

At that time, sources told PE Hub that the company generates north of $60 million in EBITDA and around $150 million in revenue, 90 percent of which is recurring.

Ontario Teachers, which has been following the company for some time, preempted the sale process, the people said.

The transaction, announced on March 24, values Mitratech at nearly $1.6 billion – or approximately 21x EBITDA, sources said.

The company is growing close to 10 percent annually and expects to double its revenue to $300 million in the next five years, both through organic efforts and strategic M&A.

Mitratech has historically fueled growth through an aggressive M&A playbook, with many add-ins in Europe.

In the last 12 months, Mitratech acquired Acuity ELM, a provider of SaaS e-billing, matter management and claims defense; INSZoom, a provider of immigration case management services; CMPG Risk Solutions, a software provider for the financial services, healthcare and insurance industries; and California-based Tracker Corp, a provider of legal and compliance software.

TA, Hg, and Mitratech did not return PE Hub’s request for comment.