M&A Deal Summary

Apax and Lewis & Clark Capital Acquire Answers

On August 11, 2014, private equity firms Apax and Lewis & Clark Capital acquired internet software and services company Answers from TA Associates, Summit Partners and AFCV Holdings

Acquisition Highlights
  • This is Apax’s 9th and Lewis & Clark Capital’s 1st transaction in the Internet Software and Services sector.
  • This is Apax’s 59th and Lewis & Clark Capital’s 7th transaction in the United States.
  • This is Apax’s 9th and Lewis & Clark Capital’s 1st transaction in New York.

M&A Deal Summary

Date 2014-08-11
Target Answers
Sector Internet Software and Services
Buyer(s) Apax
Lewis & Clark Capital
Sellers(s) TA Associates
Summit Partners
AFCV Holdings
Deal Type Secondary Buyout
Advisor(s) Guggenheim Securities (Financial)
Wilson Sonsini Goodrich & Rosati (Legal)

Target

Answers

New York, New York, United States
Answers Corp. is an operator of online Q&A site that is a community-generated social knowledge Q&A platform, leveraging wiki-based technologies. Through the contributions of its large and growing community, answers are improved and updated over time. Answers was founded in 1999 and is based in New York City.

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Buyer(S) 2

Buyer

Apax

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1981
PE ASSETS 77.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Apax Partners is a mega-sized private equity investment group, operating across the United States, Europe, Israel and Asia. Broad industry sectors of interest include tech & telecom, media, retail & consumer, healthcare, financial services, and business services. Apax will consider both minority and majority investment positions and prefers companies with strong market positions and growth potential. The Firm generally pursues platform acquisitions valued from $1 to $5 billion. Apax Partners was formed in 1981 and is based in London.


DEAL STATS #
Overall 154 of 266
Sector: Internet Software and Services M&A 9 of 27
Type: Secondary Buyout M&A Deals 27 of 67
State: New York M&A 9 of 19
Country: United States M&A 59 of 107
Year: 2014 M&A 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-28 Chola

Chennai, India

Chola is a financial services arm of the Murugappa Group that offers vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stockbroking, and a variety of other financial services to customers. Chola was founded in 1978 and is based in Chennai, India.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-09-03 Kinetic Concepts

San Antonio, Texas, United States

Kinetic Concepts, Inc. is a developer and marketer of an innovative medical devices for advanced wound healing and therapeutic treatment systems that address skin breakdown, pulmonary complications, and circulation problems associated with patient immobility. KCI's medical devices and therapeutic systems include V.A.C.® Therapy Systems, as well as specialty beds, mattress replacement systems, wheelchair seating, and related devices. KCI serves hospitals, nursing homes, and home care settings both in the U.S. and abroad.

Sell -
DESCRIPTION

FTL Capital is a private investment firm focused on partnering with management teams to pursue acquisitions of profitable US-based companies with up to $100 million in revenues. FTL has a preference for family-owned companies with strong business models, differentiated products/services, and significant opportunities for growth. Sectors of interest include industrial products/services, business services, financial services, real estate, technology, and food. FTL Capital was formed in 2001 and is based in St. Louis, Missouri.


DEAL STATS #
Overall 7 of 11
Sector: Internet Software and Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 1
State: New York M&A 1 of 1
Country: United States M&A 7 of 11
Year: 2014 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-03-05 Euphrates Vascular

St. Louis, Missouri, United States

Euphrates Vascular is a biomedical company with cutting-edge procedures in the treatment of blood clots. Euphrates Vascular was founded in 2009 and is based in St. Louis, Missouri.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-13 Randall Manufacturing

Elmhurst, Illinois, United States

Randall Manufacturing LLC is a manufacturer of insulated products, used to control temperature in refrigerated vehicles and refrigerated warehouses, as well as metal ramps used in the transportation of food products. The company sells its products to customers engaged in food distribution, transportation, refrigerated food storage, food retailing, institutional food service, restaurant chains and trailer manufacturing.

Sell -

Seller(S) 3

SELLER

TA Associates

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1968
PE ASSETS 65.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TA Associates is a private equity firm that targets investments in middle-market and large companies around the world. TA will consider control or minority investments in profitable companies and looks to commit between $70 and $500 million per transaction. TA proactively reaches out to companies directly in sourcing potential investment opportunities. Prospective businesses are generally valued between $100 million and $3 billion. Areas of interest include technology, software, communications, financial services, healthcare, business services, semiconductors/electronics, and consumer products/services. In addition to investing equity capital, TA also makes subordinated debt investments. TA's geographic preference is North America, Asia/Pacific, and Europe. TA Associates was formed in 1968 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 176 of 260
Sector: Internet Software and Services M&A 6 of 15
Type: Secondary Buyout M&A Deals 18 of 50
State: New York M&A 14 of 16
Country: United States M&A 158 of 207
Year: 2014 M&A 7 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-08-04 Aicent

San Jose, California, United States

Aicent, Inc. is a provider of data network, messaging and roaming solutions to telecom network operators internationally. The company provides a platform for cross-border and cross-network data delivery solutions to mobile network operators serving more than three billion mobile users worldwide.

Sell $292M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-08-19 SkinnyPop

Austin, Texas, United States

Amplify Snack Brands, Inc. (dba SkinnyPop) is a marketer of packaged popcorn products. Amplify Snack Brands was founded in 2010 and is based in Austin, Texas.

Buy -
SELLER

Summit Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1984
PE ASSETS 39.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Summit Partners is a private investment and asset management firm focused on venture, growth, credit, and public equity investing. Sectors of interest include business services, communications technology and services, consumer products, energy, financial services, healthcare and life sciences, industrial products, internet/information services, media/entertainment, semiconductors, electronics, and software. Summit Partners is known for having a proactive business development group for sourcing transactions. Summit will consider both minority or majority investment stakes and is willing to commit as little as $10 million or as much as $500 million in combined debt/junior capital per transaction. The Firm's geographic coverage spans North America and Europe. Summit Partners was formed in 1984 and is headquartered in Boston, Massachusetts.


DEAL STATS #
Overall 182 of 294
Sector: Internet Software and Services M&A 11 of 29
Type: Secondary Buyout M&A Deals 22 of 64
State: New York M&A 7 of 12
Country: United States M&A 172 of 254
Year: 2014 M&A 8 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-21 IVC Evidensia

Bristol , United Kingdom

IVC Evidensia is a diversified vet services platform, an extensive network of clinics/hospitals, and comprehensive pet e-commerce and telemedicine offerings. IVC Evidensia was founded in 2011 and is based in Bristol, United Kingdom.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-21 Access

Peabody, Massachusetts, United States

Access is a records and information management (RIM) services provider in the United States. Access' complete suite of services includes records storage and document management in both hardcopy and digital formats, data protection (electronic computer media), secure destruction, digital document conversion and breach reporting services. Access was founded in 2004 and is based in Woburn, Massachusetts.

Sell -
SELLER

AFCV Holdings

St. Louis, Missouri, United States

Category Company
Founded 2007
Sector Information Technology
DESCRIPTION

AFCV Holdings, LLC develops and operates a broad range of consumer internet technologies and connects consumers with relevant content from experts and online user communities.


DEAL STATS #
Overall 1 of 1
Sector: Internet Software and Services M&A 1 of 1
Type: Secondary Buyout M&A Deals 1 of 1
State: New York M&A 1 of 1
Country: United States M&A 1 of 1
Year: 2014 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-04-14 Answers

New York, New York, United States

Answers Corp. is an operator of online Q&A site that is a community-generated social knowledge Q&A platform, leveraging wiki-based technologies. Through the contributions of its large and growing community, answers are improved and updated over time. Answers was founded in 1999 and is based in New York City.

Buy -