Spectrum Equity Mergers and Acquisitions Summary

Private Equity Firm Profile

In the last 3 years, Spectrum Equity has invested in 7 companies.

Spectrum Equity’s most common sectors for investment areinternet software and services (31%) and software (20%) . The Firm’s most common investment types include growth capital (49%) and buyout (lbo, mbo, mbi) (14%). In total, Spectrum Equity has invested in 25 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 (62%). 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 Activity163
    • M&A Buy Activity93
    • M&A Sell Activity70
  • Total Sectors Invested 14
  • Total Countries Invested 9
  • M&A Buy/Sell Connections 82
  • M&A Advisors 8

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 ≤ '19 '20 '21 '22 '23 '24 T
Buy (2.4/yr) # 81 5 2 4 1 - 93
vol $4.7B $4.7B
Sell (2.8/yr) # 56 3 6 2 3 - 70
vol $24.1B $2.8B $532M $27.4B
  163

Most Recent M&A

Company Date Value Type
Benchmark Mineral Intelligence Ltd. 2023-11-17 - Growth Capital
London, United Kingdom · www.benchmarkminerals.com
Animoto, Inc. 2023-08-22 - Trade Sale
New York, New York · www.animoto.com
Enrollease, Inc. 2023-04-04 - Trade Sale
San Francisco, California · www.ease.com
Teacher Synergy LLC 2023-03-02 - Trade Sale
New York, New York · www.teacherspayteachers.com
Extreme Reach, Inc. 2022-09-07 - Secondary Sale
Dedham, Massachusetts · www.extremereach.com
Payer Compass LLC 2022-08-01 - Trade Sale
Plano, Texas · www.payercompass.com
WIN Reality LLC 2022-06-03 - Growth Capital
Austin, Texas · www.winreality.com
Peaberry Software, Inc. 2022-03-01 - Growth Capital
Beaverton, Oregon · www.customer.io
Rapid Ratings International, Inc. 2022-02-14 - Stake Purchase
New York, New York · www.rapidratings.com
RxVantage, Inc. 2022-01-24 - Growth Capital
El Segundo, California · www.rxvantage.com
View All >>

Portfolio M&A

Company Acquired Add-On/Sale Date #
The Knot Worldwide Inc. 2018-09-25 WeddingWire, Inc. 2018-09-25 1
New York, New York · www.theknotww.com Bethesda, Maryland · www.weddingwire.com

M&A by Sector

Sector Current # Value All-time # Value
Internet Software and Services 14 (48%) 933M (100%) 29 (31%) 933M (20%)
Software 6 (21%) - 18 (19%) 213M (5%)
Information Technology 5 (17%) - 9 (10%) -
Information Services 2 (7%) - 8 (9%) 1.7B (36%)
Communications - - 7 (7%) 1.4B (30%)
Business Services 1 (3%) - 6 (6%) 200M (4%)
Financial Services - - 4 (4%) -
Media - - 4 (4%) -
Healthcare Services - - 2 (2%) 232M (5%)
Education 1 (3%) - 2 (2%) -
Marketing - - 2 (2%) -
Digital Media - - 1 (1%) -
Insurance - - 1 (1%) -
Publishing - - 1 (1%) -
Total 29 $933M 94 $4.7B

Acquisitions By Geo

State/Country Current # Value All-time # Value
United States 24 (83%) 933M (100%) 81 (86%) 4.5B (95%)
  California 6 (21%) - 17 (18%) 200M (4%)
  New York 7 (24%) 933M (100%) 15 (16%) 1.1B (22%)
  Illinois 2 (7%) - 5 (5%) -
  Massachusetts 1 (3%) - 5 (5%) -
  Utah 1 (3%) - 4 (4%) 1.6B (34%)
  Texas 1 (3%) - 4 (4%) 129M (3%)
  Pennsylvania - - 3 (3%) -
  Washington - - 3 (3%) -
  New Jersey 1 (3%) - 2 (2%) 1.2B (25%)
  Missouri 1 (3%) - 2 (2%) -
  Tennessee - - 2 (2%) 232M (5%)
  Maryland - - 2 (2%) -
  Kansas - - 2 (2%) -
  Florida - - 2 (2%) -
  Connecticut - - 2 (2%) -
  Colorado - - 2 (2%) -
  Oregon 1 (3%) - 1 (1%) -
  North Carolina 1 (3%) - 1 (1%) -
  Minnesota 1 (3%) - 1 (1%) -
  Georgia 1 (3%) - 1 (1%) -
  Wisconsin - - 1 (1%) 84M (2%)
  Oklahoma - - 1 (1%) -
  New Hampshire - - 1 (1%) -
  Kentucky - - 1 (1%) -
  Virginia - - 1 (1%) -
United Kingdom 1 (3%) - 5 (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 (5%)
Spain - - 1 (1%) -
Australia - - 1 (1%) -
Domestic 24 (83%) 933M (100%) 81 (86%) 4.5B (95%)
Cross-border 5 (17%) - 13 (14%) 237M (5%)
Total 29 $933M 94 $4.7B

Acquisitions by Deal Type

Type Current # Value All-time # Value
Growth Capital 22 (76%) - 46 (49%) -
Buyout (LBO, MBO, MBI) - - 13 (14%) 122M (3%)
Venture 4 (14%) - 9 (10%) -
Stake Purchase 1 (3%) - 7 (7%) -
Recapitalization - - 6 (6%) 84M (2%)
Going Private 1 (3%) 933M (100%) 5 (5%) 3.9B (82%)
Secondary Buyout - - 5 (5%) 432M (9%)
Divestiture 1 (3%) - 2 (2%) 237M (5%)
Merger - - 1 (1%) -
Total 29 $933M 94 $4.7B

Exits by Deal Type

Type Total # Value
Trade Sale - Public Company 24 (34%) 18.9B (72%)
Trade Sale 18 (26%) 1.3B (5%)
IPO 12 (17%) -
Secondary Sale 9 (13%) 4.2B (16%)
Merger 5 (7%) 2.0B (8%)
Recapitalization 2 (3%) -
Total 70 $26.4B

Top M&A Advisors

Financial Deals
Lightning Partners LLC
1
Solomon Partners
1
Triple Tree LLC
1
Legal Deals
Latham & Watkins
7
Choate Hall & Stewart LLP
2
Kirkland & Ellis
2

Deal Values

buy # Total
> $1B 2 $2.8B
$100M to $1B 6 $1.9B
< $100M 1 $84M
TOTAL $4.7B
Largest Ancestry.com, Inc.
$1.6B (2012-10-22)
sell # Total
> $1B 9 $20.1B
$100M to $1B 17 $7.3B
< $100M 1 $50M
TOTAL $27.4B
Largest BATS Global Markets, Inc.
$3.4B (2017-03-01)

M&A Connections

Deals
Acquired from
Investor(s)
9%
8 (9%)
Strategic(s)
2%
2 (2%)
Exited to
Investor(s)
14%
10 (14%)
Strategic(s)
67%
47 (67%)

FAQ

When was Spectrum Equity founded?

Spectrum Equity was founded in 1994.

What type of investor is Spectrum Equity?

Spectrum Equity is a private equity firm.

Where is Spectrum Equity headquartered?

Spectrum Equity is headquartered in Boston, Massachusetts.

How much capital does Spectrum Equity have under management?

Spectrum Equity has 4.7B USD under management.

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