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Vector Capital to make 6x its investment with 20-20 Tech sale

Vector Capital stands to make nearly 6x its money with the sale of 20-20 Technologies, a source familiar with the situation said.

Vector said May 1 it agreed to sell 2020 to Golden Gate Capital. Terms weren’t disclosed. Founded in 1987, 2020 provides interior-space-planning software for designers, retailers and manufacturers in the interior-design and furniture industries. 2020 will keep its offices in Laval, Quebec, and Westwood, Massachusetts; it will continue to be led by its current senior management, including CEO Mark Goldstein, a statement said.

In 2012, Vector took 2020 private in a deal valued at C$77 million. Founder Jean Mignault kept a large chunk of the company. The transaction was Vector’s first Canadian purchase since it acquired Corel in 2009, according to press reports.

Vector, San Francisco, targets public and private companies in software, internet and digital media, communications and industrial technology. Vector used its fourth flagship fund, which collected $1.2 billion in 2007, to buy 2020. The firm’s fifth fund raised $1.4 billion earlier this year.

Golden Gate has more than $15 billion of capital under management. The firm focuses on companies in sectors including software, hardware, telecom and semiconductors as well as IT and business services. Investments include Infor, BMC Software and Ex Libris.

The firm is known for its evergreen funds. In 2011, Golden Gate raised $3.5 billion for its Opportunity Fund. The pool is a perpetual fund, where the firm asks investors every four years to re-up, Buyouts has reported.

Golden Gate on May 1 also closed its buy of Bob Evans Restaurants. Press reports pegged the deal at $565 million.

William Blair provided financial advice to 2020 and Vector Capital, while Sidley Austin was legal adviser. Goldman Sachs Specialty Lending Group is providing debt financing. Kirkland & Ellis and Nob Hill Law Group are the attorneys for Golden Gate.

Executives for Golden Gate and 2020 declined comment.

Action Item: Contact 2020 CEO Mark Goldstein: +1 514-332-4110

Correction: A prior version of this story said Mignault would keep a large chunk of the company. That was for the 2012 transaction. The story has been changed. 

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