Buyout (LBO, MBO, MBI) • Software

Prism Capital, First Analysis, Argentum Capital Partners, FTV Capital and JMI Equity Acquire Trustwave

On May 19, 2004, mezzanine finance firm Prism Capital, venture capital firm First Analysis, growth capital firm Argentum Capital Partners, growth capital firm FTV Capital and private equity firm JMI Equity acquired software company Trustwave

Acquisition Context
  • This is Prism Capital’s 1st, First Analysis’ 2nd, Argentum Capital Partners’ 3rd, FTV Capital’s 4th and JMI Equity’s 15th transaction in the Software sector.
  • This is Prism Capital’s 6th, First Analysis’ 17th, Argentum Capital Partners’ 6th, FTV Capital’s 18th and JMI Equity’s 18th transaction in the United States.
  • This is Prism Capital’s 2nd, First Analysis’ 1st, Argentum Capital Partners’ 1st, FTV Capital’s 2nd and JMI Equity’s 2nd transaction in Illinois.
Investment Fate
  • Trustwave went public in 2011.
  • Trustwave was sold to a financial buyer in 2012.
  • Trustwave was sold to a publicly-traded strategic buyer in 2015 for 810M USD.
  • Trustwave was divested to a consortium of buyers in 2024.
  • Trustwave was sold to a strategic buyer in 2025.

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M&A Deal Summary

Date May 19, 2004
Target Trustwave
Sector Software
Buyer(s) Prism Capital
First Analysis
Argentum Capital Partners
FTV Capital
JMI Equity
Deal Type Buyout (LBO, MBO, MBI)

Target Company

Trustwave

Chicago, Illinois, United States
Trustwave is a cybersecurity company that reduces cyber risk and fortifies organizations against disruptive and damaging cyber threats. The company's comprehensive offensive and defensive cybersecurity portfolio detects what others cannot, responds with greater speed and effectiveness, optimizes its client’s cyber investment, and improves security resilience. It is an analyst-recognized leader in managed detection and response (MDR), managed security services (MSS), cyber advisory, penetration testing, database security, and email security. Trustwave was formed in 1995 and is based in Chicago, Illinois.
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Buyers Overview 5

Buyer

Prism Capital

Chicago, Illinois, United States

Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1999
PE ASSETS 190M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Prism Capital is a licensed SBIC investment firm focused on providing equity and mezzanine capital to lower middle market companies. Prism's Mezzanine practice looks to provide up to $7 million in financing for Midwest based mature industrial companies. Mezzanine capital is typically invested to support internal growth, recapitalizations, mergers, acquisitions and ownership changes. Prism also provides equity of $2 to $15 million through an Opportunity Fund. The Opportunity Fund invests in expansion stage IT companies as well as traditional manufacturing and service businesses with growth opportunities. Prism Capital was formed in 1999 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 6 of 24
Sector: Software 1 of 2
Type: Buyout (LBO, MBO, MBI) 2 of 10
State: Illinois 2 of 5
Country: United States 6 of 24
Year: 2004 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-26 SterilMed

Maple Grove, Minnesota, United States

SterilMed, Inc. provides reprocessing, repair, and refurbishment of medical devices, equipment, and instruments. It repairs and sells medical equipment, including flexible endoscope systems, rigid endoscope systems, camera and video tower systems, power equipment, and surgical instrumentation.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-10-01 Violet Packing Co.

Williamstown, New Jersey, United States

Violet Packing Co., is a regional processor of fresh packed tomato products, including pizza and spaghetti sauces, crushed tomatoes and whole tomatoes.

Buy -
Buyer

First Analysis

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Venture Capital Firm
Founded 1981
PE ASSETS 800M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

First Analysis is a financial advisory and investment firm. First Analysis' private equity arm targets investments in growth companies at all stages of development. The Group looks for opportunities based primarily in the US and can commit up to $10 million of equity per transaction. Sectors of particular interest include outsourced services, (business/government services, education, environmental services, healthcare services, marketing services); information technology, (business integration, call centers, healthcare IT, network security, open source, sensor systems, transaction processing); and chemistry enabled businesses (advanced materials, chemicals, healthcare products, polymers, purification). First Analysis was formed in 1981 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 18 of 60
Sector: Software 2 of 12
Type: Buyout (LBO, MBO, MBI) 8 of 11
State: Illinois 1 of 7
Country: United States 17 of 57
Year: 2004 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-13 IndX Software

Aliso Viejo, California, United States

IndX Software Corp. developed sophisticated, Internet-enabled information solutions for enterprises and their supply chains. Its IndX HQ (XHQ) product extracted and transformed data from multiple, disparate back-end systems, aggregated and managed content, and distributed information to users in a visually expressive way.

Sell $40M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-07-01 bTrade

Glendale, California, United States

As part of its offering of infrastructure and services that enabled quick and secure mission-critical data exchange over networks, bTrade established itself as a leading provider in the market of product item synchronization, established by the Uniform Code Council (UCC) and identified as a key reference technology for radio frequency identification (RFID) supply chain enablement.

Sell -
Buyer

Argentum Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1988
PE ASSETS 400M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Argentum Capital Partners is a private equity firm focused on investing in small to mid-sized companies with proven business models and the ability to become market leaders. Prospective transaction situations include growth capital financing, management buyouts, platform acquisitions, and recapitalization. The firm typically takes minority positions, except in the case of management buyouts. Industry sectors of interest include business services, healthcare, and technology. Argentum generally prefers opportunities located in the Eastern US, but will consider companies across the US. Argentum Capital Partners was formed in 1988 and is based in New York City.


Deal Context for Buyer #
Overall 7 of 48
Sector: Software 3 of 12
Type: Buyout (LBO, MBO, MBI) 5 of 10
State: Illinois 1 of 3
Country: United States 6 of 45
Year: 2004 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-05-06 ShopLocal

Chicago, Illinois, United States

Cofactor Digital is a digital marketing solutions provider, that connects online and offline shoppers across all channels and devices. Cofactor Digital was established in 1999 and is headquartered in Chicago, Illinois.

Sell $75M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-04-01 TCI Solutions

Irvine, California, United States

TCI Solutions provides software solutions and services that enable in-store automation of inventory tracking, accounting, and other functions to help retailers improve operational efficiency. TCI's software solutions were installed at more than 14,000 locations world-wide. They integrate workforce, financial, and customer information at both the headquarter and individual store levels.

Sell $34M
Buyer

FTV Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1998
PE ASSETS 6.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

FTV Capital is a multi-stage private equity firm focused on providing capital to high-growth companies. FTV generally seeks to invest in software, business services, and financial services companies which enable financial institutions to expand and to operate more efficiently. Investment proceeds are typically used to fund rapid organic growth, provide shareholder liquidity, pursue add-on acquisitions, or acquire divestitures. FTV prefers to act as the lead or control investor and targets equity commitments of $10 to $85 million per transaction. FTV Capital was established in 1998 and was formerly known as FTVentures. FTV Capital is based in San Francisco with an additional office in New York City.


Deal Context for Buyer #
Overall 20 of 133
Sector: Software 4 of 27
Type: Buyout (LBO, MBO, MBI) 14 of 35
State: Illinois 2 of 12
Country: United States 18 of 105
Year: 2004 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-06 Actimize

New York, New York, United States

Actimize, Inc. is a provider of a surveillance platform that enables financial institutions to identify threats and prevent potential losses from money laundering, fraudulent transactions and brokerage compliance violations.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-08-04 MedSynergies

Irving, Texas, United States

MedSynergies is a provider of outsourced billing, claims administration and payment processing services to healthcare providers such as physician groups, hospitals and corporate healthcare providers.

Buy -
Buyer

JMI Equity

La Jolla, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 7.5B USD
Size Mega
Type Sector Focused
DESCRIPTION

JMI Equity is a private equity firm focused on investments in software, internet, business service, and healthcare IT. Targeted businesses typically help automate and optimize business and information technology processes. The Firm will consider investments at all stages of development, including early-stage companies, self-funded businesses requiring growth capital, and later stage businesses in need of buyout or recapitalization funding. JMI looks to commit at least $25 million per transaction. JMI Equity was formed in 1992 and maintains offices in San Diego and Baltimore.


Deal Context for Buyer #
Overall 20 of 130
Sector: Software 15 of 55
Type: Buyout (LBO, MBO, MBI) 7 of 23
State: Illinois 2 of 5
Country: United States 18 of 114
Year: 2004 3 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-04-28 Changepoint

Richmond Hill, Ontario, Canada

Changepoint Corp. is a provider of comprehensive Web-based business process automation solutions for corporate IT departments and IT professional services organizations to manage projects, people and budgets effectively. IT services organizations use Changepoint to automate their internal business processes, source and procure valued resources, manage contractors and collaborate with customers and partners. Changepoint was founded in 1992 and is based in Richmond Hill, Ontario.

Sell $100M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-05-28 Optika Solutions

Colorado Springs, Colorado, United States

Optika Solutions is a provider of imaging, workflow and collaboration software. Optika's Acorde family of Internet software solutions allows companies to efficiently manage complex business processes and transactions.

Sell -