M&A Deal Summary

Five Crowns Capital, Diamond State Ventures and Aavin Equity Advisors Acquire Verrex

On July 21, 2016, private equity firm Five Crowns Capital, growth capital firm Diamond State Ventures and private equity firm Aavin Equity Advisors acquired information technology company Verrex

Acquisition Highlights
  • This is Five Crowns Capital’s 1st, Diamond State Ventures’ 1st and Aavin Equity Advisors’ 1st transaction in the Information Technology sector.
  • This is Five Crowns Capital’s 4th, Diamond State Ventures’ 22nd and Aavin Equity Advisors’ 11th transaction in the United States.
  • This is Five Crowns Capital’s 1st, Diamond State Ventures’ 1st and Aavin Equity Advisors’ 2nd transaction in New Jersey.

M&A Deal Summary

Date 2016-07-21
Target Verrex
Sector Information Technology
Buyer(s) Five Crowns Capital
Diamond State Ventures
Aavin Equity Advisors
Deal Type Buyout (LBO, MBO, MBI)

Target

Verrex

Mountainside, New Jersey, United States
Verrex is a provider in designing, integrating, supporting, managing, and deploying audio-visual and unified communication systems and services that allow organizations to thrive within evolving workforces, environments, and work styles. Verrex was founded in 1947 and is based in Mountainside, New Jersey.

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Buyer(S) 3

DESCRIPTION

Five Crowns Capital is a private investment firm focused on small and middle-market company buyouts. The Firm does not have any sector preferences and will consider opportunities throughout the US and Canada. Five Crowns pursues companies with $20 to $200 million in revenue and $4 to $40 million of EBITDA and typically involve privately-held companies, family-owned businesses, and corporate divestitures. Five Crowns Capital was formed in 2003 and is baed in Newport Beach, California.


DEAL STATS #
Overall 4 of 5
Sector: Information Technology M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 3 of 3
State: New Jersey M&A 1 of 1
Country: United States M&A 4 of 5
Year: 2016 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-26 CDG

Culver City, California, United States

Cosmetic Design Group is a provider of custom design and formulation for beauty products. Cosmetic Design Group was founded in 1990 and is based in Culver City, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-08-17 Hci

Norco, California, United States

Hci is an infrastructure service provider to the telecom industry on the West Coast, with a headquarters in Norco, California and five additional offices throughout Central and Southern California. Hci was founded in 1982 and is based in Norco, California.

Buy -
Buyer

Diamond State Ventures

Little Rock, Arkansas, United States

Investor


Category Growth Capital Firm
Founded 1999
PE ASSETS 125M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Diamond State Ventures (DSV) is a private equity and venture capital firm focused on small and lower middle-market company investments in Arkansas, as well as the Midwest and Southeast US. DSV looks to commit $1 to $5 million per investment, which can take the form of subordinated debt, preferred equity or a combination of the two. Prospective transaction situations include growth capital financings, management buyouts, family successions, recapitalizations, and early stage investments. Sectors of interest include niche manufacturing, business services, media, consumer products and services, education, healthcare, and technology. DSV will not invest in seed or startup companies. Diamond State Ventures is based in Little Rock.


DEAL STATS #
Overall 22 of 24
Sector: Information Technology M&A 1 of 1
Type: Buyout (LBO, MBO, MBI) M&A Deals 16 of 18
State: New Jersey M&A 1 of 1
Country: United States M&A 22 of 24
Year: 2016 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-08-01 Transfer Tool Products

Grand Haven, Michigan, United States

Transfer Tool Products is a manufacturer of complex deep-drawn metal components and assemblies, specializing in high-volume production of small custom parts in steel, stainless steel, brass, aluminum, and other metal alloys. Transfer Tool Products was founded in 1985 and is based in Grand Haven, Michigan.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-09-30 Mission Critical Electronics

Costa Mesa, California, United States

Mission Critical Electronics is a niche-oriented manufacturer of power conversion, battery charging and battery products operating under the brands Kussmaul Electronics, Newmar Power, ASEA Power Systems, Power Products, and American Battery Charging. The Company focuses on critical system applications in specialty vehicle, public safety, and industrial/marine applications where durability, reliability, and performance are essential to deliver immediately accessible power. MCE’s solutions address application-specific requirements for 4,000 customers across 2,000+ branded SKUs. Mission Critical Electronics is based in Costa Mesa, California.

Sell -
Buyer

Aavin Equity Advisors

Cedar Rapids, Iowa, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 275M USD
Size Small
Type Sector Agnostic
DESCRIPTION

AAVIN Private Equity is a private investment firm that targets investments in smaller companies at all stages of development from early stage to later stage/buyouts. AAVIN typically looks for opportunities located in the Midwest and typically commits $1 to $5 million of capital per transaction. Sectors of interest include medical services & devices, telecommunications, manufacturing & distribution, industrial products & services and computer & software. AAVIN was formed in 1999 and is based in Cedar Rapids, Iowa.


DEAL STATS #
Overall 11 of 29
Sector: Information Technology M&A 1 of 2
Type: Buyout (LBO, MBO, MBI) M&A Deals 5 of 21
State: New Jersey M&A 2 of 3
Country: United States M&A 11 of 29
Year: 2016 M&A 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-14 Coolibar

Minneapolis, Minnesota, United States

Coolibar, Inc. is a designer and manufacturer of premium sun-protective clothing and accessories. The Company offers apparel for the entire family, focused on fitness, leisure, swimwear and accessories, that provide UPF 50+ protection from ultraviolet rays and is the first clothing company to earn The Skin Cancer Foundation's Seal of Recommendation.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-01 Standard Precast

Jacksonville, Florida, United States

Standard Precast is a manufacturer of precast concrete products for storm drainage, sanitation, and other underground infrastructure applications. Standard Precast was founded in 1965 and is based in Jacksonville, Florida.

Buy -