Thompson Street Puts Iron Data Up for Sale, Arlington Nears Buy

Thompson Street Capital Partners has put Iron Data on the block, four sources say.

Atlanta-based Iron Data develops software for local and state governments. The company, which employs over 300 people, produced more than $25 million EBITDA, one PE exec says. Thompson Street was seeking bids of 10x for Iron Data, the source says.

“It was pretty frothy,” the person says of the auction.

Jefferies & Co. is advising Iron Data on its sale, sources said.

Arlington Capital is near buying Iron Data, according to my compadres at Thomson Reuters Loan Pricing Corp., which I’ve since confirmed. The Chevy Chase, Md.-based based Arlington is in the market now raising a $110 million credit facility led by SunTrust. The loan package includes a $95 million term loan and a $15 million revolver, LPC said.

“Not sure they are going to get there on price,” one banker says of Arlington’s bid.

Thompson Street, a St. Louis-based PE firm, acquired Iron Data in November 2007. It was unclear how much was invested. In January of 2010, Iron Data acquired Versa Systems, of Toronto, which provides regulatory software to government agencies in North America. The following April saw Iron Data buying Raleigh, N.C.-based CAVU Corp., which also offers software to government agencies.

Arlington Capital targets middle market companies with $50 million to $500 million enterprise value. Arlington has invested in the Federal IT market before. In 2005, the PE firm sold Apogen Technologies to QinetiQ in a $300 million deal.

Officials for Thompson, Arlington, Jefferies and Iron Data did not return calls for comment.