Vista Equity starts Social Solutions sale process

The process is currently in its early stages, with first-round bids for the software company due a little over a week ago.

Vista Equity Partners has launched a sale process for Social Solutions, a cloud software provider for non-profit organizations, sources familiar with the matter told PE Hub.

The firm has hired Harris Williams for financial advice. The process is currently in its early stages, with first-round bids due a little over a week ago, the sources said.

The process is likely to attract several mid-market PE firms, non-profits and local government agencies, one of the sources said.

Social Solutions, based in Austin, Texas, provides performance management software for the public sector and human service organizations. Social Solutions’ software products, called Efforts to Outcomes (ETO) and Apricot, help organizations measure the progress that they make with participants and families.

The company is addressing growing social needs and provides a 360-degree view of families that are receiving aids through the Social Solutions platform, one of the sources said.

Social Solutions generates around $100 million in revenue and $40 million in EBITDA, two sources familiar with the company told PE Hub. According to a third source, the company’s size is closer to $75 million and $30 million in revenue and EBITDA, respectively.

Vista Equity acquired the company in July 2014, and since that time has fueled growth at the company through a few strategic acquisitions.

In 2015, Social Solutions acquired Community TechKnowledge, the maker of Apricot software, which helps nonprofits streamline work through outcomes management, reporting software and services. At the time of the deal, more than 18,000 nonprofit organizations on four continents used Apricot software, representing thousands of users each day.

This January, Social Solutions bought Athena Software, a case management software solution, to accelerate their combined pace of innovation and impact on outcomes for organizations. Post deal, the organization serves clients in the US, Canada, UK, Australia and New Zealand, with further international expansion planned.

Athena added another software product to Social Solutions called Penelope, a SaaS solution for human health and social services providers around the world.

Social Solutions plays in the popular non-profit software sub-sector, which in the past year has commanded greater interest and capital inflows from private equity investors.

Most recently, Apax Partners acquired CyberGrants, a provider of Software-as-a-Service solutions for corporate philanthropy, including workplace giving, employee engagement and grants management.

Some other companies in the sub-sector are either expected to come to the market or are already awaiting bids, sources told PE Hub.

Vista Equity declined to comment. Harris Williams and Social Solutions did not respond to PE Hub’s request for comment.