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Court Square’s GoEngineer Doubles Size with CATI Purchase

By Chris Nolter
Published: August 25, 2022

With the purchase of 3D design software and printing hardware vendor Computer Aided Technology Inc. announced Thursday, Aug. 25, GoEngineer Inc. is doubling its revenue about nine months after raising capital from Court Square Capital Partners LP.

“It’s atypical for us to double the size of a business within less than a year,” Court Square managing partner Jeff Vogel told The Deal about GoEngineer’s purchase of CIVC Partners LP portfolio company CATI.

The logic behind the deal is partly geographic. GoEngineer of Salt Lake City is the largest computer-aided design, or CAD, software and 3D printing hardware vendor and services provider in North America, largely focused west of the Mississippi. CATI is “sort of the carbon copy of GoEngineer, but in the Eastern North American region.” Vogel said.

The deal was also about scale. GoEngineer founder and CEO Ken Coburn has greater ability to invest in sales and engineering resources to work with clients and important suppliers such as Dassault Systèmes SE and Stratasys Ltd. (SSYS). Meanwhile, the company can continue to make tuck-in acquisitions as 3D printing, also known as additive manufacturing, grows. So far, Vogel said GoEngineer is following the playbook of Court Square’s successful investment in former portfolio company Ahead Inc.

Additive M&A

When Court Square recapitalized GoEngineer in December 2021, the sponsor and portfolio company already had CATI on their radar. “We knew that this was a possibility,” Vogel said. The sponsor did not know the deal would materialize so quickly, however. Vogel said the timing so soon after the recap gives Court Square and GoEngineer several years to digest the acquisition and continue to invest in the business before the private equity firm’s prospective exit.

CATI dates to 1992 and raised capital from CIVC in 2019. The middle-market Chicago sponsor typically makes initial equity investments of $20 million to $100 million in companies with $5 million to $25 million in Ebitda.

The deal resulted from direct talks rather than an auction. “GoEngineer had a relationship with the CATI management team for years,” Vogel said. “Even before we owned GoEngineer, we had a relationship with CIVC.” Lazard Ltd. and Dechert LLP advised GoEngineer, while CATI retained Lincoln International LLC.

Vogel compared GoEngineer with cloud consulting and services company Ahead. Court Square backed the Chicago company in November 2015 and merged the business with fellow portfolio company Data Blue LLC in 2019, before selling it to Centerbridge Partners LP and Berkshire Partners LLC in October 2020.

“The Ahead and Data Blue business model is the exact same model as GoEngineer’s, but instead of being focused on CAD and 3D printing, they’re focused on storage, compute and networking solutions and cloud solutions into the data center for large enterprises,” Vogel said.

In both cases, Court Square combined two large, founder-run companies. “With Ahead, we did that over a five-year period,” he said. “With GoEngineer, it’s been within the first 12 months.”

CAD Consolidation

Acquisitions will still be part of the story, though GoEngineer’s next deals will likely be smaller, tactical tuck-ins. “At this point we’re pretty excited about the organic growth opportunities,” Vogel said.

Targets could include regional operators that have developed relationships with GoEngineer’s team, customers or vendors such as Dassault or Stratasys. GoEngineer also could look to expand into technological specialties such as electrical, mechanical, manufacturing or design-oriented shops. With its scale, GoEngineer could bring on small teams of experts through deals. As GoEngineer expands, it could seek international consolidation opportunities.

The market for CAD software and 3D printing resellers is fragmented, with PE firms and acquisitive private companies. Middle-market sponsor Sentinel Capital Partners LLC purchased a controlling stake in Richmond, Va.-based TriMech Solutions LLC in March. Hawk Ridge Systems LLC of Mountain View, Calif., has raised equity and debt from Main Street Capital Corp. (MAIN) to roll up peers. MLC CAD Systems Inc. of Austin, Texas, is also acquisitive.

“The beauty of the 3D printing market is that, even though it’s been around for quite some time, it still feels so nascent in all the various growth opportunities.” Vogel said.

As 3D printing technology moves from product design to short-run manufacturing and greater-scale manufacturing, Vogel suggested adoption will proliferate across industrial, healthcare and other applications.

“You’re going to start to see different winners emerge,” Vogel said. “Once you have winners at scale, then ultimately they are going to start to be the consolidators.”

Source: The Deal

Court Square Capital Partners-Backed GoEngineer Announces Acquisition of Computer Aided Technology, Inc.

SALT LAKE CITY–(BUSINESS WIRE)–Court Square Capital Partners, a middle market-focused private equity firm, announced today that its portfolio company GoEngineer, a leading provider of 3D design and additive manufacturing solutions, has acquired Computer Aided Technology, Inc. (“CATI”), a product development solutions provider specializing in 3D software and 3D printing hardware.

Founded in 1992 and headquartered in Chicago, CATI is a leader in the CAD and additive manufacturing solutions space, with over 30 years of experience in product development solutions designed to deliver unique services and innovative technologies to customers.

The acquisition, which is GoEngineer’s eleventh add-on acquisition since 2013 and follows the most recent acquisition of Proto3000 in October 2021, represents the next strategic step in the company’s goal of building a national CAD and additive manufacturing platform. In addition, GoEngineer will be able to increase its footprint in the Midwest and Eastern U.S. through CATI’s existing customer network in the region.

“We have been impressed by CATI’s commitment to quality and innovation and believe their strong product development presence in the CAD and additive manufacturing solutions space complements our existing capabilities,” said Ken Coburn, Founder & Chief Executive Officer of GoEngineer. “Through the integration of CATI, we hope to expand our product offering, drive greater value for our existing customers and key technology partners, and enhance our ability to reach more customers in different regions across the U.S.”

With over 35 years’ experience, GoEngineer provides best-in-class design solutions to customers in the high tech, medical, machine design, and energy industries. These services are carefully selected for their ease-of-use, manageability, and ability to integrate with third-party platforms that help to unlock innovation and deliver better products faster. GoEngineer was acquired by Court Square Capital Partners in December 2021.

“The acquisition of CATI represents the continued execution of our goal to make GoEngineer the premier provider of 3D design and additive manufacturing solutions in the U.S,” said Jeff Vogel, Managing Partner at Court Square. “Our investment in GoEngineer, together with its subsequent add-on acquisitions, is a testament to our 40-year track-record of successfully partnering with founders and manager-owners to help drive significant value creation, while remaining dedicated to their core values in excellence and quality.”

Lazard served as financial advisor and Dechert as legal counsel to GoEngineer. Lincoln International served as financial advisor to CATI.

About Court Square

Court Square is a middle market private equity firm with one of the most experienced investment teams in the industry. Since 1979, Court Square has completed over 245 platform investments, helping managers, families and founder-owners to develop their companies into leaders in their respective markets. Court Square invests in companies that have compelling growth potential in the business services, industrial, healthcare, and tech and telecom sectors. Court Square has $7.6 billion of assets under management and is based in New York, N.Y. For more information on Court Square, please visit www.courtsquare.com.

About GoEngineer

GoEngineer delivers software, technology, and expertise that enable companies to unlock innovation and deliver better products faster. With more than 35 years of experience and tens of thousands of customers in high-tech, medical, machine design, energy, and other industries, GoEngineer provides best-in-class design solutions from SOLIDWORKS, Stratasys, CAMWorks, Creaform, and Oracle’s Agile PLM. For more information on GoEngineer, please visit www.goengineer.com.

About Computer Aided Technology, Inc.

Computer Aided Technology (CATI) is a product development solutions provider empowering the innovators solving America’s engineering and manufacturing challenges. Since 1992, CATI has been helping clients succeed through innovation. Led by industry experts and with the help of their portfolio of software, 3D printing, 3D scanning and metrology, PDM and PLM, design automation, and implementation solutions, CATI helps customers reinvent their businesses and stay ahead of the competition. For more information on Computer Aided Technology, Inc., please visit www.cati.com.

Contacts
Media Inquiries
Max Rayden
Vice President, Financial Services, Edelman Smithfield
courtsquare@edelman.com

Source: Court Square

Court Square puts 40-year history of healthcare investing to work

By Aaron Weitzman
14 July 2022

There are many private equity firms investing in healthcare these days, as PE Hub readers know well. That’s one of the reasons we launched this series profiling healthcare investors earlier this year. What makes Court Square Capital Partners stand out is sector expertise developed over 40 years, said Managing Partner David Nguyen.

“Healthcare has gotten very crowded, but we do feel like we’ve differentiated ourselves really nicely to management teams and founders we seek out as strong potential partners,” he said. With eight investment professionals working full-time on healthcare deals, Court Square goes head to head with healthcare-specific firms, according to Nguyen.

The firm focuses on investments in pharma value chain, durable medical equipment (DME) and distribution.

The firm’s focus on the mid-market is also a differentiator. “If you look at a lot of the other private equity firms out there, they have growth strategies, large cap, small cap, credit, etc., but all we work on at Court Square are middle market transactions,” he said.

Pull, not push

Court Square prides itself on its collaborative approach. “What we are trying to do when we look at investing with founders is turning a sale process about price into an interview about partnership,” Nguyen explained. The firm also embraces a “pull-not-push philosophy.”

“We’re not going to come in and tell the founders and the management teams what to do,” Nguyen said. “We’re going to respectfully talk about what the right growth strategy is, and how to execute upon it. We make decisions as a group, we are in it together, and we do not point fingers if things do not go as planned.”

The firm is often the first institutional capital invested in a company, “which is rare for a fund of our size,” according to Nguyen.

“In healthcare, four of our most recent investments were founder-owned businesses where we’re the first outside capital,” he said. “Our focus on founder-owned companies boils down to two interrelated reasons. One is there’s outsized growth potential because they are earlier on in their lifecycle and oftentimes less than 10 years old. Additionally, these businesses typically could use help and building out processes, technology and infrastructure to allow them to scale.”

Common threads

“Typical investments of ours have EBITDA between $15 million to $75 million, ” said Nguyen. “The common threads, other than size, are that we look for growth-minded entrepreneurial management teams, market leaders in their niches, and companies that lower the cost of healthcare and/or improve patient experience. These market leaders and these growth-oriented management teams, they have to be in sectors that we think long-term, over 10 plus years, have real wind behind their backs and will be significantly larger in the future than they are today.”

All about the tech

“As much as technology adoption has increased, and the focus on the consumer rightfully has increased, there is still a long way to go, ” he said.

To that end, Court Square invested in a company called Advanced Diabetes Supply in 2020, which provides continuous glucose monitoring (CGM) for diabetic patients.

“The old technology used to be finger pricking and blood glucose monitoring, ” he said. “CGM, which is an improved technology, helps lower the overall cost of the healthcare system and improves patient outcomes and experience. There is more real-time data for the patient, less hospitalizations, fewer comorbidities.”

Another tech-focused example is the firm’s investment in Health Union. The company owns and operates 40-plus condition-specific social communities.

“If you think of migraine.com, or multiple sclerosis.net, these are domains that Health Union manages, where there are daily, highly curated content updates, and comprise of communities where over 85 percent of visitors actually have the condition, ” he said. “It is very different from a WebMD, where people are going to try to figure out what they have, with billions of views each year.”

Health Union’s domains feature more focused communities that help people navigate a disease or a condition. The company is “technologically driven, because it is online, it’s digital, and it’s mobile – not to mention about exciting growth initiatives like a privacy-compliant data strategy.”

“The great news about healthcare is that, as you look down the road, given the aging population, the increase in comorbidities and polychronic diseases, and the lack of infrastructure and technology, the future looks very bright for PE investing, ” said Nguyen. “In addition to growing healthcare expenditures, the continued focus on the consumer and the innovation that’s disrupting traditional models also bodes well and signals healthy growth for a lot of different sectors in healthcare.”

Exit strategy

“On exits, we don’t have any prescribed timeframe, nor strategy around exit, whether to a sponsor, or to a strategic, or to the public market, ” he said. “This goes back to our DNA, our partnership approach with our management teams. It really starts with what we and the management team want to do together to create value. If a management team never wants to become a public company, we are not going to force them to become a public company.”

He noted that the average hold time is four to five years.

“There’s really no rule as to whether it’s three years, or five years, other than sometimes the management team and we feel like if we are in a good market, and there is still a lot of upside left for the next buyer, whether they’re a sponsor or a strategic buyer, we may agree that it’s time to test the market.”

One example of a quicker exit was with a business called Medical Knowledge Group, which the firm backed initially in 2019 and sold to Novo Holding earlier this year.

“It was a very well-run company, and it had been private equity owned before, yet it was still run by the founder who started the company 20 years prior, ” he said. “We helped the management team double the business in two years. We drove more investments in analytics/technology. We augmented the BD function. And we helped develop and execute on a comprehensive M&A strategy. As the business had more than doubled in two years, there was a lot of inbound interest, so we decided to test the market and we ended up finding a really good partner for the management team. Although it was an investment for just over two years, we made a return for our investors of 3.4x MOCI and over 75 percent IRR.”

Firm Facts

Founded in 1979 and based in New York, Court Square Capital Partners is a private equity firm focused on leveraged buyout transactions in the US mid-market. Court Square was originally a captive merchant banking firm within Citigroup known as Citigroup Venture Capital. The firm invested off of Citi’s balance sheet for the first 20 years of its existence, then raised its first fund with outside capital in 2000. Court Square is currently investing Fund IV, which closed in January 2020.

Recent investments

As noted above, Court Square invested in Health Union and Advanced Diabetes Supply in 2020.

Recent exits

As mentioned above, Court Square exited Medical Knowledge Group in 2022 after an initial investment in 2019, as it was sold to sponsor Novo Holding.

Court Square exited NDC in 2021 after an initial investment in 2016, as it was sold to sponsor Platinum Equity.

Court Square exited NSM in 2019 after an initial investment in 2016, as it was sold to sponsor Cinven.

Court Square’s healthcare portfolio highlights

(Dates refer to initial investments)

Advanced Diabetes Supply: A national distributor of durable medical equipment, specializing in the home delivery of diabetes products including continuous glucose monitoring and other testing supplies. ADS provides diabetic products directly to patients and assists with payor authorization and approval. (December 2020)

Celerion: A global provider of outsourced pharmaceutical clinical research services focused on early-stage trials. (November 2017)

Golden State Medical Supply: A provider of generic pharmaceuticals to the US Department of Veterans Affairs and US Department of Defense. GSMS sources products directly from manufacturers in bulk, packages them per government requirements, and ships the products to the government’s prime vendors. (June 2019)

Health Union: A developer and operator of digital patient communities focused on specific conditions that are monetized primarily through pharmaceutical digital advertising. (December 2020)

Integrated Prescription Management: A pharmacy benefit manager serving self funded employers and third-party administrators. The company manages the pharmacy benefit for self-insured clients, which consists of managing and adjudicating prescription claims as well as negotiating with pharmacies. (August 2018)

Knipper Health: A provider of pharmaceutical sample and marketing solutions to drug manufacturers in the U.S. (October 2019)

Source: PE Hub

West Coast Dental Announces Strategic Capital Investment from Court Square Capital Partners

Partnership Will Accelerate West Coast Dental’s Rapid Growth Plans

LOS ANGELES–(BUSINESS WIRE)–West Coast Dental (“WCD”), a leading provider of high quality multi-specialty dental and orthodontic care in California, today announced that Court Square Capital Partners (“Court Square”), a middle market-focused private equity firm with $7.6 billion in assets under management, has made a major investment in WCD’s support organization. With Court Square’s support, WCD will be best positioned to accelerate on its plans to provide greater access to high quality family dental and orthodontic care throughout the communities that it serves.

WCD currently has 40 multi-specialty dental and orthodontic offices across California, including West Coast Dental and Magicland branded offices, and employs over 130 highly skilled general and specialist dentists providing care in more than 425,000 patient visits each year. In 2021, WCD celebrated the 30th anniversary of its founding in 1991.

“As dentists, our patients will always be at the core of our mission to provide comprehensive high quality dental care through a combination of high-standards in care, expertise of our general and specialist dentists and orthodontists, and use of state-of-the-art technology,” said Dr. Payam Sohrab, CEO & President of West Coast Dental. “We are excited to be partnering with Court Square due to their deep industry knowledge and successful track-record in working with founder and management-owned businesses.”

The capital investment comes after a period of significant growth for WCD. Since its founding, WCD has invested heavily in its infrastructure and people to address the growing need in the Californian dental care market and to sustainably support its plans for significant expansion and consolidation in the sector. WCD is well positioned for the next stage of its growth strategy through its partnership with Court Square.

“We have been impressed by the strong platform that the West Coast Dental team has created and are excited to partner with Dr. Sohrab and the WCD team to help achieve the next phase of the company’s growth plans. This investment is a testament to our 40-year track-record of successfully partnering with founders, families, and manager-owners to help drive significant value creation, while remaining dedicated to their core values in excellence and quality,” said Jeff Abramoff, Partner at Court Square. “WCD has all of the hallmarks of a ‘Court Square Deal’ and we are confident in its ability to execute on its exciting strategic vision for the future.”

Following the completion of the capital investment, WCD founders, Dr. Farid Pakravan, Dr. Soleyman Cohen Sedgh and Dr. Farhad Manavi, will remain investors alongside Court Square, and Dr. Payam Sohrab will remain CEO & President of the company.

SVB Securities served as exclusive financial advisor to West Coast Dental and Harris Williams as financial advisor to Court Square.

About West Coast Dental
Founded in 1991 by a group of dedicated dental professionals, West Coast Dental is a leading provider of multi-specialty dental and orthodontic care primarily servicing the Southern Californian market. Through its 40 state-of-the-art dental care practices across the state of California, West Coast Dental provides the highest standard of care to over 425,000 patient visits each year using the latest technologies with a team of talented general dentists and specialists. For more information, visit www.westcoastdental.com.

About Court Square
Court Square is a middle market private equity firm with one of the most experienced investment teams in the industry. Since 1979, Court Square has completed over 245 platform investments, helping managers, families and founder-owners to develop their companies into leaders in their respective markets. Court Square invests in companies that have compelling growth potential in the business services, industrial, healthcare, and tech and telecom sectors. Court Square has $7.6 billion of assets under management and is based in New York, N.Y. For more information on Court Square, please visit www.courtsquare.com.

Media Inquiries
Max Rayden
Vice President, Financial Communications & Capital Market, Edelman
courtsquare@edelman.com

Source: Court Square

Behind the Buyouts: How Court Square Befriends Founders

Court Square Managing Partner Jeffrey Vogel discusses the firm’s approach to investing with founders, the spinout from Citi and changes in the tech market.

By Chris Nolter
Published: June 15, 2022

In this edition of The Deal’s Behind the Buyouts podcast, Court Square Capital Partners LP Managing Partner Jeffrey Vogel takes us through the firm’s middle-market playbook — in which founders and management-owned companies play a large role.

Court Square was once part of Citigroup Inc. (C), and its roots go back to the early days of leveraged buyouts. Vogel discussed the evolution of the portfolio, from semiconductors and telecom infrastructure to IT services and software.

“We’ve found if we’re looking at a deal and it’s us against an infrastructure fund, one of us is in the wrong spot,” Vogel said of the need to change with the market.

He explained why the firm’s investment in data center technology and services company Ahead Inc. was the “quintessential case study of a Court Square deal” and helped the firm make a subsequent deal with 3D printing company GoEngineer Inc.

Amid inflation, stock market volatility, geopolitical instability and questions about interest rates, the 18-year Court Square veteran said he takes assurance form the enduring growth in cloud, bandwidth, devices and security. While the tech talent squeeze has been a challenge to Court Square portfolio companies, Vogel said, it also presents an investment opportunity.

Listen to the Podcast: The Deal

Court Square Brings Founder-Friendly Model to CAD, 3D Printing

Managing Partner Jeff Vogel discusses the firm’s investment in GoEngineer and Court Square’s approach to working with founders and management-owned companies.

By Chris Nolter
February 11, 2022 12:03 PM

Court Square Capital Partners LP is deploying its middle-market playbook in computer-aided design and 3D printing with an investment in GoEngineer Inc.

“GoEngineer was a perfect down-the-middle-of-the-fairway investment for us,” Jeff Vogel, a managing partner at Court Square, told The Deal of the deal announced in January.

The Salt Lake City company sells computer-aided design, or CAD, software and 3D printing hardware and advises large enterprises on how to best use the technology, and it fits a number of Court Square’s criteria, Vogel noted. The firm is keen on profitable, middle-market growth companies in tech, industrials, healthcare and business services that are predominantly owned by founders or management. Relationships with founders and management-owners is a core part of the strategy, and GoEngineer CEO Ken Coburn stayed with the company and remains an investor.

GoEngineer works with large enterprises such as Boeing Co. (BA), Alphabet Inc.’s (GOOGL) Google, Nintendo Co. Ltd. and Chevron Corp.(CVX) that need to design and print airplane parts, video game consoles or other products and components.

“With any of these companies, they need somebody to hold their hand through that process, to help them understand how to use this software or which software to choose and, ultimately, if they need help over time, training them how to use it and help them to be better at their job,” Vogel said.

“It has more than $200 million of revenue, it’s growing double digits, and the majority is recurring revenue,” Vogel said. Court Square’s future plans for GoEngineer includes cross-selling 3D printing to its CAD software customers.

CAD software is a $10 billion market growing at approximately 10%, he said. While 3D printing is a roughly similar-sized market, it is growing at more than 20%, an opportunity that Vogel described in financial markets terms.

“We’ve got a call option on GoEngineer because 85% of the business is CAD software today, but hopefully five years from now a lot of the growth will be driven from just the cross-selling of 3D technology to our 10,000 customers,” Vogel said. The company expects more growth as 3D printing shifts from design and developing prototypes to manufacturing products at scale.

GoEngineer’s profile is reminiscent of former Court Square portfolio company Ahead LLC. Court Square backed the Chicago cloud consulting and services company in November 2015 and sold it in October 2020 to Centerbridge Partners LP and Berkshire Partners LLC for an undisclosed amount.

Ahead helps customers deploy tech and services from companies such as Cisco Systems Inc. (CSCO); Dell Technologies Inc. (DELL) and its EMC Corp. unit; Amazon.com Inc.’s (AMZN) Amazon Web Services; and Microsoft Corp.’s (MSFT) Azure.

“Ahead doesn’t actually make that technology,” Vogel said. “They go to these customers and guide them through their next five-year cloud and data center strategy.”

Ahead was also a founder-based business. “They were doing $20 million and $200 million of Ebitda and revenue, and we increased that eightfold by the time we exited,” Vogel said.

GoEngineer and Ahead are typical of Court Square’s portfolio.

Approximately 70% of Court Square’s investments are with founder-owners and management-owned companies. “They have the power to decide who their partners are. It isn’t just, ‘I’m going to sell my company for the highest amount of money I could possibly get,’” Vogel said. “This is their baby, and they want to stay engaged. They’re looking for the safe pair of hands and the right partner to align with on that next stage of growth.”

Management makes an average six times their investment alongside Court Square’s investment, he added.

The company’s approach to founder- and management-owned companies may provide an advantage when negotiating with potential portfolio companies. “They’re talking to other founders or current managers of our portfolio companies and that sells, because they know we’ve got a demonstrated track record and are going to make them a substantial amount of money,” Vogel said. “It’s just never about the price. It’s actually about that next bite of the apple.”

Source: The Deal

Harris Williams Advises Terra Millennium Corporation on its Pending Sale to H.I.G. Capital

RICHMOND, Va.–(BUSINESS WIRE)–Harris Williams, a global investment bank specializing in M&A advisory services, announces it is advising Terra Millennium Corporation (Terra Millennium), a portfolio company of Court Square Capital Partners (Court Square), on its pending sale to H.I.G. Capital (H.I.G.). Terra Millennium is a leading national provider of outsourced industrial maintenance services, including refractory maintenance and other specialized services. Terra Millennium’s executive team, led by CEO Bryan Young, will continue to lead the company and remain as significant shareholders. The transaction is being led by Drew Spitzer, Matt White, Neha Shah, Sean Bielawski and Ken Black of the Harris Williams Energy, Power & Infrastructure (EPI) Group.

“Terra Millennium, driven by its best-in-class management team, deep industry relationships, and operational excellence, has established itself as a truly differentiated platform that continues to outperform its peers in the specialized industrial services space,” said Drew Spitzer, a managing director at Harris Williams. “This transaction adds to our successful track record of advising premier infrastructure services companies.”

“We are seeing strong demand for top-quality infrastructure services providers like Terra Millennium as investors seek resilient businesses providing non-discretionary services,” added Matt White, a managing director at Harris Williams. “It is a pleasure working with the Terra Millennium team, and we look forward to following the company’s continued evolution with its new partner.”

Terra Millennium is a leading provider of outsourced industrial maintenance services, including refractory design and maintenance, fireproofing, insulation, coatings, scaffolding, and mechanical services. Founded in 1906 and headquartered in Salt Lake City, Terra Millennium is the parent company to seven entities (i) JTTHORPE, (ii) JTTHORPE International, (iii) K&G Industrial, (iv) Southern Refractories, Inc., (v) Brahma Group, (vi) Liberty Industrial Group, and (vii) Rocky Mountain Industrial Construction Services. Terra Millennium operates from a network of 33 offices across the country.

Court Square is a middle market private equity firm with one of the most experienced investment teams in the industry. Since 1979, Court Square has completed over 245 platform investments, helping managers, families, and founder-owners to develop their companies into leaders in their respective markets. Court Square invests in companies that have compelling growth potential in the business services, industrial, healthcare, and tech and telecom sectors. Court Square has $7.6 billion of assets under management and is based in New York.

H.I.G. Capital is a leading global alternative assets investment firm with over $49 billion of equity capital under management. Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach. Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion.

Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).

The Harris Williams EPI Group has significant experience advising market leading providers of technology, services and products across a broad range of sectors. These sectors include energy management; infrastructure services; utility services; testing, inspection, and certification services; environmental services; engineering and construction; power products and technology; and energy technology. For more information on the Group’s experience, please visit the EPI Group’s section of the Harris Williams website.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

Contacts
For media inquiries, please contact media@harriswilliams.com.

Source: Business Wire

Court Square Backs Online Marketer Power Digital

Power Digital offers technology and services that help companies enhance their marketing performance

By Laura Kreutzer
Updated March 14, 2022 1:23 pm ET

Court Square Capital Partners has backed marketing technology company Power Digital Marketing to help the company further expand its services and clientele, including those in the private-equity industry itself.

Midmarket-focused Court Square is the second private-equity firm in recent years to back the San Diego-based company, which helps businesses, particularly consumer brands, analyze and improve their marketing efforts. Chicago-based Periscope Equity, which first invested in Power Digital in 2019, is exiting its stake.

Although terms of the deal were not disclosed, a person familiar with the transaction said the value of the deal falls somewhere around the middle of a $150 million to $1.5 billion enterprise value range that typifies Court Square’s deals.

Power Digital’s Sprnova technology platform helps companies evaluate and analyze first-party data, which businesses collect directly from their customers and own themselves, and then helps in assessing the data and developing marketing and growth strategies based on that analysis.

“[First-party data is] the most valuable asset, because it’s the truest data source,” said Chief Executive Grayson Lafrenz, who founded Power Digital in 2012. The company said it managed nearly $600 million in advertising spending on behalf of its clients in 2021 and has generated more than 80% of its revenue from e-commerce brands. Clients have included Innovative Technology Electronics LLC’s audio-products brand Victrola, alternative protein producer Beyond Meat Inc., mattress retailer Casper Sleep Inc. and beauty brand Kate Somerville Skincare LLC, according to Power Digital’s website.

Mr. Lafrenz said he sees an opportunity with Court Square to also expand in its business-to-business and private-equity segments.

“We don’t think anyone is doing a great job of both being able to consult those companies on their sales engine, [customer relationship management] and systems, but also bring in the performance marketing side, where you can actually drive qualified leads to the sales organization,” he said.

Power Digital developed a business line catering to private-equity firms after working with a portfolio company of a private-equity firm.

“I was blown away by the amount of money and resources they spent…on accounting, legal [or] technology diligence,” Mr. Lafrenz said, adding that he saw firms spend much less time and money on diligence of growth opportunities.

Power Digital since then has worked on various marketing and growth projects with more than 50 private-equity and venture-capital firms, a number that Mr. Lafrenz predicts will increase this year.

Court Square is backing Power Digital out of its roughly $2.7 billion Court Square Capital Partners IV LP fund, according to Kevin White, a partner at the New York-based firm.

Mr. White, who noted that 72% of the companies that Court Square has invested in through its two latest funds have been founder-, family- or management-owned businesses, said he sees opportunities for Power Digital to expand its services, including through acquisitions.

Under Periscope’s ownership Power Digital completed four add-on deals, including the 2020 purchase of Covet Public Relations, a consumer brands-focused agency, and the acquisition last year of Social Method, a digital media-buying and creative agency with an emphasis on Meta Platforms Inc.’s Facebook and Instagram.

“This company has many, many services that they offer to their clients,” Mr. White said. “M&A is a big part of the reason why you can continue to add services to the fold.”

Write to Laura Kreutzer at laura.kreutzer@wsj.com

Source: WSJ Pro Private Equity

Booking Holdings Completes the Acquisition of Getaroom

NORWALK, Conn., Dec. 30, 2021 /PRNewswire/ — Booking Holdings Inc. (NASDAQ: BKNG) today announced that it has successfully completed its previously announced plan to acquire Getaroom from Court Square Capital Partners for approximately $1.2 billion. Getaroom is a B2B distributor of hotel rooms, and will roll into Booking Holdings’ Priceline brand to form a new Strategic Partnerships business unit with the Priceline Partner Network.

“By combining the technology and expertise of Getaroom and Priceline, we believe we can increase value for both hotel and affiliate partners,” said Brett Keller, Chief Executive Officer of Priceline. “We are thrilled to welcome Getaroom to the Priceline family, and look forward to learning from each other to best support our partners.”

Getaroom will remain headquartered in Dallas and current Chief Executive Officer, Matt Davis, will lead Priceline’s new Strategic Partnerships business unit.

About Booking Holdings
Booking Holdings (NASDAQ: BKNG) is the world’s leading provider of online travel and related services, provided to consumers and local partners in more than 220 countries and territories through six primary consumer-facing brands: Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable. The mission of Booking Holdings is to make it easier for everyone to experience the world. For more information, visit BookingHoldings.com and follow us on Twitter @BookingHoldings.

About Getaroom
Getaroom is a B2B-focused distributor of hotel rooms primarily serving leisure travelers within or traveling to North America. Getaroom’s mission is to simplify the complexity and costs of global distribution for hotels and deliver a single supplier solution for partners around the world that desire to offer a hospitality experience to their members, employees or customers.

SOURCE Booking Holdings Inc.

Source: PR Newswire

Trebia Acquisition Corp. and System1 Announce Closing of Business Combination

Combined Company to Trade on NYSE Under Ticker SST Commencing January 28, 2022

LOS ANGELES, Jan. 27, 2022 (GLOBE NEWSWIRE) — System1 (together with Protected.net Group, “System1” or the “Company”), an omnichannel customer acquisition marketing platform, and Trebia Acquisition Corp. (“TREB” or “Trebia”) (NYSE: TREB), a special purpose acquisition company formed by entities affiliated with William P. Foley II and Frank Martire Jr, announced today the completion of their business combination (the “Business Combination”). The Business Combination was approved by a majority of Trebia stockholders at a special meeting held on January 20, 2022.

Through a series of transactions, System1 has combined with Trebia, and Trebia has changed its name to “System1, Inc.” as of the closing date. Beginning on January 28, 2022, System1’s common stock is expected to begin trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “SST.”

System1 brings to the NYSE a leading digital marketer that delivers high-intent customers to advertising partners and its own subscription products utilizing its omnichannel and omnivertical Responsive Acquisition Marketing Platform (RAMP). System1’s RAMP technology allows it to build brands with reach, develop and distribute a suite of privacy-focused products and deliver high-intent customers to its advertising partners.

System1’s management team, led by Chief Executive Officer and Co-Founder Michael Blend, will continue to lead the combined company, while Trebia’s Co-Founders William P. Foley II and Frank Martire Jr will join the combined company’s Board of Directors.

“I would like to thank the Trebia team for their hard work in providing us the vehicle to start System1’s next chapter as a public company,” commented Chief Executive Officer Michael Blend. “In a market where it is difficult to find value, System1 presents a unique opportunity to invest in a rapidly-growing and high cash flow-generating technology company at what we believe is an attractive valuation. We have built a fantastic team, and our RAMP technology is accelerating our business across customer acquisition and subscriptions.”

William P. Foley II, Chairman of Cannae, commented, “We are proud to partner with System1 and look forward to supporting this exciting new chapter for the company. With its proprietary RAMP technology and unique value proposition, we’re confident that System1 will continue to expand its position as a leading digital advertising company. We are excited to see System1 enter its next phase of growth, now with added capital resources.”

About System1
System1 combines best-in-class technology & data science to operate its advanced Responsive Acquisition Marketing Platform (RAMP). System1’s RAMP is omnichannel and omnivertical, and built for a privacy-centric world. RAMP enables the building of powerful brands across multiple consumer verticals, the development & growth of a suite of privacy-focused products, and the delivery of high-intent customers to advertising partners.

For more information, visit www.system1.com.

Trebia Acquisition Corp.
Trebia Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more business entities. The company was founded by William P. Foley, II and Frank R. Martire, Jr. on February 11, 2020 and is headquartered in New York, NY.

For more information, visit www.trebiaacqcorp.com.

Forward Looking Statements
This communication includes “forward-looking statements”. Forward-looking statements include, but are not limited to, statements regarding System1 or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this document may include, for example, statements about System1’s industry and market sizes; future opportunities for System1; expectations and projections concerning the future financial and operational performance and/or results of operations of System1.

The forward-looking statements contained in this document are based on System1’s current expectations and beliefs concerning future developments, and their potential effects on System1 taking into account information currently available.

These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause System1’s actual financial results or operating performance to be materially different from those expressed or implied by these forward-looking statements. Such risks, uncertainties and assumptions include, but are not limited to: (1) the impact of COVID-19 on System1’s business; (2) the inability to maintain the listing of System1’s common stock on the NYSE following the proposed Business Combination; (3) the risk that the Business Combination disrupts current plans and operations as a result of the consummation of the Business Combination; (4) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of System1 to grow and manage growth profitably, and retain its key employees; (5) costs related to the Business Combination; (6) changes in applicable laws or regulations (including those concerning data security, consumer privacy and/or information sharing); and (7) the possibility that System1 may be adversely affected by other economic, business, and/or competitive factors. The foregoing list of factors is not exclusive. Additional information concerning certain of these and other risk factors is contained in System1’s most recent filings with the SEC, including the Proxy Statement/Prospectus filed in connection with the Business Combination.

Contacts:

Investors
Ashley DeSimone
ICR, Inc.
Ashley.desimone@icrinc.com

Brett Milotte
ICR, Inc.
Brett.milotte@icrinc.com

Media
Dan McDermott
ICR, Inc.
Dan.mcdermott@icrinc.com

Source: GlobeNewswire