Waud Capital to sell philanthropy software provider CyberGrants

The Chicago PE firm invested in CyberGrants in June 2015 in partnership with Mark Layden, a seasoned software executive who assumed the CEO position as part of the deal.

Waud Capital Partners has kicked off a sale process for CyberGrants, a software provider for the philanthropic sector, sources familiar with the matter told PE Hub.

The firm is working with Raymond James to advise CyberGrants on its sale, and books with marketing information for the company were sent out earlier this week, the sources said.

CyberGrants, based in Andover, Massachusetts, provides Software-as-a-Service solutions for corporate philanthropy, including workplace giving, employee engagement and grants management.

The company generates $40 million in annual recurring revenue and $9 million in EBITDA, according to the sources.

Waud Capital invested in the company in June 2015 in partnership with Mark Layden, a seasoned software executive who assumed the CEO position as part of the deal. In November 2014, WCP and Layden partnered to form Greenwood Technology Partners with a focus on acquiring and building a leading vertical market software company. Before joining CyberGrants, Layden was chief operating officer of Applied Systems.

Since Waud’s investment, CyberGrants completed the add-on acquisition of JK Group, a provider of technology for corporate philanthropic management programs.

Another recent deal in the software philanthropy space was done in December, when Hg and JMI Equity acquired a majority ownership in Benevity, a provider of corporate purpose cloud software, from General Atlantic. Sources told PE Hub that Benevity was valued at 10x revenue.

Waud Capital, based in Chicago, is a growth equity firm focused on investing in mid-market companies in healthcare services, business services and technology services.

Waud Capital declined to comment. Raymond James and CyberGrants did not return PE Hub’s requests for comment.