Secondary Buyout • Software

Blue Water Energy Acquires Authentix

On September 12, 2017, private equity firm Blue Water Energy acquired software company Authentix from The Carlyle Group and J.H. Whitney Capital Partners

Acquisition Context
  • This is Blue Water Energy’s 1st transaction in the Software sector.
  • This is Blue Water Energy’s 3rd transaction in the United States.
  • This is Blue Water Energy’s 3rd transaction in Texas.

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M&A Deal Summary

Date September 12, 2017
Target Authentix
Sector Software
Buyer(s) Blue Water Energy
Sellers(s) The Carlyle Group
J.H. Whitney Capital Partners
Deal Type Secondary Buyout

Target Company

Authentix

Addison, Texas, United States
Authentix is a pioneer in developing and delivering authentication solutions for the protection of high-value consumables such as refined oil and gas supplies (e.g. gasoline, diesel, lubes, and LPG). For over twenty years Authentix has assisted governments, IOCs, NOCs and consumers in combating illicit trade and securing their supply chains’ integrity. Authentix is based in Addison, Texas.
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Buyer Overview 1

DESCRIPTION

Blue Water Energy is a private equity firm focused on building energy companies. Blue Water looks to invest up to $150 million per project with a focus on production, upstream equipment and services, and midstream/downstream equipment and services. Blue Water typically invests in partnership with experienced management teams that have a track record of value creation. Blue Water Energy was formed in 2011 and is based in London.


Deal Context for Buyer #
Overall 18 of 24
Sector: Software 1 of 1
Type: Secondary Buyout 3 of 3
State: Texas 3 of 4
Country: United States 3 of 5
Year: 2017 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-02 Epic Midstream

Houston, Texas, United States

Epic Midstream is an independent liquid bulk storage and logistics solutions provider. Epic successfully bridges the gap between supply and demand centers through efficient logistics planning and expert management. With a flexible approach to every customer's unique requirements, Epic manages the storage and transportation requirements for many of the world's leading market participants. Epic Midstream was founded in 2011 and is based in Houston, Texas.

Sell $172M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-06-01 Edge Energy

Malvern, Pennsylvania, United States

Edge Energy is a world-first solution to flaring, venting, and stranded wells. Using the Edge LNG gathering virtual pipeline, LNG is delivered directly to terminals or end-users, including power generators, transport fleets, or remote facilities with high-horsepower applications, as a cleaner diesel alternative. Edge Energy was founded in 2018 and is based in Malvern, Pennsylvania.

Buy -

Seller Profiles 2

SELLER

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 435.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


Deal Context for Seller #
Overall 331 of 490
Sector: Software 23 of 35
Type: Secondary Buyout 71 of 119
State: Texas 34 of 38
Country: United States 194 of 261
Year: 2017 14 of 26
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-11 Itconic

Madrid, Spain

Itconic is an IT company with a global expertise in the management of neutral data centers, platforms and managed services. Itconic enables its customers to advance in their process of digital transformation, helping them to connect in the most efficient and flexible way to the rest of the world. Itconic was established in 2000 and is based in Madrid, Spain.

Sell €215M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-19 Coates Hire

Mascot, Australia

Coates Hire is Australia’s largest equipment hire company with 120 years of experience, supplying to a wide variety of markets including Engineering Civil Construction, Building Construction and Maintenance, Mining and Resources, Manufacturing, Government, Industrial Shutdowns and Events.

Sell -
SELLER

J.H. Whitney Capital Partners

New Canaan, Connecticut, United States

Category Private Equity Firm
Founded 1946
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

J.H. Whitney Capital Partners is a private equity firm focused on small and middle-market buyouts and recapitalizations of US-based, growth-oriented companies. The Firm targets companies with $50 to $500 million in revenue and looks to invest $20 to $125 million per transaction. Industries of interest include consumer, healthcare, specialty manufacturing, and business services. J.H. Whitney Capital Partners was formed in 1946 and is based in New Canaan, Connecticut.


Deal Context for Seller #
Overall 17 of 29
Sector: Software 1 of 1
Type: Secondary Buyout 10 of 15
State: Texas 5 of 7
Country: United States 16 of 28
Year: 2017 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-06-06 Joe s Crab Shack

Houston, Texas, United States

Ignite Restaurant Group, Inc. owns and operates three restaurant businesses, Joe's Crab Shack, Romano's Macaroni Grill and Brick House Tavern+Tap.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-18 Accupac

Mainland, Pennsylvania, United States

Accupac is a provider of outsourced manufacturing and packaging solutions to pharmaceutical and over-the-counter (OTC) personal care product manufacturers. Accupac is a specialist in liquid topical and oral care products, including skin creams, toothpaste, moisturizing lotions, mouthwash, and other personal care products, many of which require FDA approval. Accupac was established in 1974 and is based in Mainland, Pennsylvania.

Buy -