Spectrum Equity Mergers and Acquisitions Summary

Private Equity Firm Profile

In the last 3 years, Spectrum Equity has acquired 4 companies. It has also invested in 15 others.

Spectrum Equity’s most common sectors for investment areinternet software and services (31%) and software (19%) . The Firm’s most common investment types include growth capital (49%) and buyout (lbo, mbo, mbi) (16%). In total, Spectrum Equity has invested in 24 US states and 9 different countries. Its largest (disclosed) acquisition occurred in 2012 when it acquired Ancestry.com for $1.6B.

In the last 3 years, Spectrum Equity has exited 11 companies. The Firm’s most common exit type is trade sale (61%). Spectrum Equity’s largest (disclosed) exit occurred in 2017 when it sold BATS Global Markets for $3.4B.

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M&A Summary

  • M&A Total Activity146
    • M&A Buy Activity85
    • M&A Sell Activity61
  • Total Sectors Invested 14
  • Total Countries Invested 9
  • M&A Buy/Sell Connections 81
  • M&A Advisors 7

Spectrum Equity

1 International Place, 35th Floor,
Boston, Massachusetts 02110
United States
(617) 464-4600
www.spectrumequity.com

Spectrum Equity Management L.P. is a private equity investor focused on service businesses. Spectrum specifically targets established businesses in the media, communications, IT, information, and business services industries. The Firm looks to commit $25 to $100 million of equity capital per transaction and focuses on opportunities throughout North America and Western Europe. Prospective transaction situations include leveraged buyouts, recapitalizations, acquisition financings, and secondary purchases. Spectrum Equity Investors was formed in 1994 and has offices in Boston, Massachusetts and Menlo Park, California.


Investment Criteria

Sectors of Interest: Business Services, Communications, Consumer Products, Consumer Services, Engineering, Financial Services, Gaming, Healthcare Services, Information Technology, Insurance, Internet Software and Services, Marketing, Media, Publishing, Software

Target Transaction Types: Buyout (LBO, MBO, MBI), Consolidation, Divestiture, Growth Capital, Recapitalization, Acquisition Financing

Geographic Preferences: East US, Midwest US, South US, West US, Canada

Transaction Criteria Min Max
Target Revenue - -
Target EBITDA - -
Investment Size 25 100
Enterprise Value - -
values in millions of USD

M&A Summary

Buy vs Sell

Year ≤ '16 '17 '18 '19 '20 '21 T
Buy (4.4/yr) # 63 4 4 8 4 2 85
vol $3.8B $3.8B
Sell (3.0/yr) # 46 4 3 2 2 4 61
vol $20.5B $3.6B $2.8B $110M $27.0B
  146

Most Recent M&A

Company Date Value Type
Tenstreet LLC 2021-10-04 - Secondary Buyout
Tulsa, Oklahoma · www.tenstreet.com
Picmonkey 2021-09-07 110M USD Add-on Acquisition
Seattle, Washington · www.picmonkey.com
Verisys Corp. 2021-07-16 - Secondary Buyout
Alexandria, Virginia · www.verisys.com
Goldbelly, Inc. 2021-05-18 - Venture
New York, New York · www.goldbelly.com
PWNHealth LLC 2021-03-24 - Add-on Acquisition
New York, New York · www.pwnhealth.com
Quantile Technologies Ltd. 2021-01-14 - Growth Capital
London, United Kingdom · www.quantile.com
Verafin, Inc. 2020-11-19 2.8B USD Add-on Acquisition
St. John's, Newfoundland · www.verafin.com
ExamSoft Worldwide, Inc. 2020-10-21 - Add-on Acquisition
Boca Raton, Florida · www.examsoft.com
PWNHealth LLC 2020-09-17 - Secondary Buyout
New York, New York · www.pwnhealth.com
CINC Systems 2020-06-01 - Growth Capital
Duluth, Georgia · www.cincsystems.com
View All >>

M&A by Sector

Sector Current # Value All-time # Value
Internet Software and Services 15 (50%) - 26 (30%) -
Software 6 (20%) - 16 (19%) 213M (6%)
Information Services 3 (10%) - 7 (8%) 1.7B (45%)
Communications - - 7 (8%) 1.4B (38%)
Information Technology 3 (10%) - 7 (8%) -
Business Services - - 5 (6%) 200M (5%)
Financial Services - - 4 (5%) -
Media - - 4 (5%) -
Education 2 (7%) - 3 (3%) -
Healthcare Services - - 2 (2%) 232M (6%)
Marketing 1 (3%) - 2 (2%) -
Digital Media - - 1 (1%) -
Insurance - - 1 (1%) -
Publishing - - 1 (1%) -
Total 30 - 86 $3.8B

Acquisitions By Geo

State/Country Current # Value All-time # Value
United States 25 (83%) - 74 (86%) 3.6B (94%)
  California 8 (27%) - 16 (19%) 200M (5%)
  New York 5 (17%) - 11 (13%) 122M (3%)
  Massachusetts 3 (10%) - 5 (6%) -
  Illinois 2 (7%) - 5 (6%) -
  New Jersey 2 (7%) - 3 (3%) 1.2B (32%)
  Texas 1 (3%) - 3 (3%) 129M (3%)
  Utah - - 3 (3%) 1.6B (42%)
  Washington - - 3 (3%) -
  Pennsylvania - - 3 (3%) -
  Missouri 1 (3%) - 2 (2%) -
  Tennessee - - 2 (2%) 232M (6%)
  Florida - - 2 (2%) -
  Connecticut - - 2 (2%) -
  Colorado - - 2 (2%) -
  Maryland - - 2 (2%) -
  Kansas - - 2 (2%) -
  Georgia 1 (3%) - 1 (1%) -
  North Carolina 1 (3%) - 1 (1%) -
  Minnesota 1 (3%) - 1 (1%) -
  Wisconsin - - 1 (1%) 84M (2%)
  Virginia - - 1 (1%) -
  Oklahoma - - 1 (1%) -
  New Hampshire - - 1 (1%) -
  Kentucky - - 1 (1%) -
United Kingdom 1 (3%) - 4 (5%) -
Canada 1 (3%) - 2 (2%) -
  Ontario 1 (3%) - 1 (1%) -
  Newfoundland - - 1 (1%) -
Germany 1 (3%) - 1 (1%) -
Hungary 1 (3%) - 1 (1%) -
Ireland 1 (3%) - 1 (1%) -
France - - 1 (1%) 237M (6%)
Spain - - 1 (1%) -
Australia - - 1 (1%) -
Domestic 25 (83%) - 74 (86%) 3.6B (94%)
Cross-border 5 (17%) - 12 (14%) 237M (6%)
Total 30 - 86 $3.8B

Acquisitions by Deal Type

Type Current # Value All-time # Value
Growth Capital 23 (77%) - 42 (49%) -
Buyout (LBO, MBO, MBI) 1 (3%) - 13 (15%) 122M (3%)
Venture 3 (10%) - 7 (8%) -
Recapitalization 2 (7%) - 6 (7%) 84M (2%)
Stake Purchase - - 6 (7%) -
Secondary Buyout - - 5 (6%) 432M (11%)
Going Private - - 4 (5%) 2.9B (77%)
Divestiture 1 (3%) - 2 (2%) 237M (6%)
Merger - - 1 (1%) -
Total 30 - 86 $3.8B

Exits by Deal Type

Type Total # Value
Trade Sale - Public Company 23 (38%) 18.5B (71%)
Trade Sale 13 (21%) 1.3B (5%)
IPO 10 (16%) -
Secondary Sale 9 (15%) 4.2B (16%)
Merger 4 (7%) 2.0B (8%)
Recapitalization 2 (3%) -
Total 61 $26.0B

Top M&A Advisors

Financial Deals
Triple Tree LLC
 1
Rosenblatt Securities, Inc.
 1
Lightning Partners LLC
 1
Legal Deals
Latham & Watkins
 6
Kirkland & Ellis LLP
 2
Choate Hall & Stewart LLP
 2

Deal Values

buy # Total
> $1B 2 $2.8B
$100M to $1B 5 $920M
< $100M 1 $84M
TOTAL $3.8B
Largest Ancestry.com, Inc.
$1.6B (2012-10-22)
sell # Total
> $1B 9 $20.1B
$100M to $1B 16 $6.9B
< $100M 1 $50M
TOTAL $27.0B
Largest BATS Global Markets, Inc.
$3.4B (2017-03-01)

M&A Connections

Deals
Acquired from
Investor(s)
8%
7 (8%)
Strategic(s)
2%
2 (2%)
Exited to
Investor(s)
16%
10 (16%)
Strategic(s)
66%
40 (66%)

Investor Summary

Investor Type

Private Equity Firm

Size

Large

PE Assets

4.7B USD

Established

1994

Specialist/Generalist

Specialist

Leadership

Brion Applegate

Co-Founder

Adam Margolin

Managing Director

Benjamin Spero

Managing Director

Christopher Mitchell

Managing Director

Jeffrey Haywood

Managing Director

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