M&A Deal Summary

Comvest Partners, Stellus Capital Management and PennantPark Investment Advisers Acquire Gen3 Marketing

On September 21, 2021, private equity firm Comvest Partners, private equity firm Stellus Capital Management and lender PennantPark Investment Advisers acquired marketing company Gen3 Marketing from Longshore Capital Partners

Acquisition Highlights
  • This is Comvest Partners’ 2nd, Stellus Capital Management’s 2nd and PennantPark Investment Advisers’ 3rd transaction in the Marketing sector.
  • This is Comvest Partners’ 48th, Stellus Capital Management’s 11th and PennantPark Investment Advisers’ 20th transaction in the United States.
  • This is Comvest Partners’ 2nd, Stellus Capital Management’s 2nd and PennantPark Investment Advisers’ 1st transaction in Pennsylvania.

M&A Deal Summary

Date 2021-09-21
Target Gen3 Marketing
Sector Marketing
Buyer(s) Comvest Partners
Stellus Capital Management
PennantPark Investment Advisers
Sellers(s) Longshore Capital Partners
Deal Type Secondary Buyout
Advisor(s) Lincoln International (Financial)

Target

Gen3 Marketing

Blue Bell, Pennsylvania, United States
Gen3 Marketing is a digital marketing agency that provides affiliate marketing services to customers (“advertisers”) by optimizing advertisers’ positioning of their products and services on third party websites (“publishers” or “affiliates”). Gen3 Marketing was founded in 2007 and is based in Blue Bell, Pennsylvania.

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Buyer(S) 3

Buyer

Comvest Partners

West Palm Beach, Florida, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 7.7B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Comvest Partners' headquarters in West Palm Beach, Florida.
Comvest Partners' headquarters in West Palm Beach, Florida.

Comvest Partners is a private investment firm that provides equity and debt capital to middle-market companies across North America. Comvest funds a variety of investment situations, including buyouts, divestitures, recapitalizations, consolidations, take privates, and turnarounds. Sectors of interest include business services, information services, education, financial services, healthcare services, software, IT, and transportation. For equity investments, Comvest prefers control and looks to invest $50 to $150 million per transaction. For debt needs, Comvest seeks to provide $25 to $250 million per transaction. Comvest Partners was formed in 2000 and is based in West Palm Beach, Florida.


DEAL STATS #
Overall 49 of 60
Sector (Marketing) 2 of 2
Type (Secondary Buyout) 7 of 11
State (Pennsylvania) 2 of 3
Country (United States) 48 of 59
Year (2021) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-10 RugsUSA

Cranbury, New York, United States

RugsUSA helps customers turn their houses into homes, offering a stunning array of rug styles, materials, and sizes to suit every design need and budget. With an expansive selection of rugs and home décor products, attractive price points, seamless online shopping experience, and best-in-class fulfillment and customer care, the company is an experienced e-commerce pioneer and rug industry leader, with over eight million rugs sold to nearly two million homes. RugsUSA was founded in 1998 and is based in Cranbury, New York.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-22 Renovation Brands

Florence, Alabama, United States

Renovation Brands is a distributor and retailer of electric fireplaces, electric heating appliances, customized fireplace mantels, and outdoor heating products. Renovation Brands was founded in 2002 and is based in Florence, Alabama.

Buy -
Buyer

Stellus Capital Management

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Stellus Capital Management is a provider of debt and equity capital to middle-market companies headquartered throughout the US and Canada. For credit commitments, Stellus looks to provide $10 to $50 million of capital to help support buyouts, acquisitions, recapitalization, growth opportunities, rescue financing, distressed situations, as well as bridge loans. Sectors' of interest for Stellus' credit practice includes business services, energy, general industrial, government, healthcare, software and specialty finance. Stellus' equity practice seeks to provide $30 to $50 million to small and mid-sized energy (upstream, oilfield services, midstream) companies. Stellus Capital was originally formed in 2004 as Laminar Direct Capital and operated as the direct investing unit of D.E. Shaw. The Group became independent in 2012. Stellus has offices in Houston, New York City, and Washington DC.


DEAL STATS #
Overall 11 of 23
Sector (Marketing) 2 of 3
Type (Secondary Buyout) 3 of 6
State (Pennsylvania) 2 of 2
Country (United States) 11 of 23
Year (2021) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-03-10 MissionWired

Washington, District of Columbia, United States

MissionWired provides a full suite of integrated marketing solutions that connect clients with donors to improve digital fundraising results. MissionWired was founded in 2007 and is headquartered in Washington, District of Columbia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-11-10 Ledge Lounger

Katy, Texas, United States

Ledge is an in-pool and backyard furniture and accessories platform with an omni-channel go-to-market strategy. Since the introduction of their first in-pool Chaise, Ledge has grown to include patio furnishings, umbrellas, cabanas and outdoor games, all designed to withstand the harsh pool and outdoor environments. Ledge Lounger was founded in 2011 and is based in Katy, Texas.

Buy -
Buyer

PennantPark Investment Advisers

Investor Investor Investor Investor Investor


Category Lender
Founded 2007
PE ASSETS 6.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

PennantPark is a provider of credit solutions to middle-market private equity sponsors. The Firm looks to provide $10 to $100 million of capital and can support a variety of investment structures. PennantPark was formed in 2007 and is headquartered in New York City.


DEAL STATS #
Overall 20 of 22
Sector (Marketing) 3 of 3
Type (Secondary Buyout) 9 of 9
State (Pennsylvania) 1 of 1
Country (United States) 20 of 22
Year (2021) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-01 CINgroup

Dayton, Ohio, United States

CINgroup, Inc. is a provider of innovative software and due diligence products for attorneys practicing bankruptcy and their clients. Serving customers nationwide, the CINgroup family includes Best Case® Bankruptcy, CINcompass®, CIN Legal Data Services® and myHorizon™.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-06-27 Cartessa Aesthetics

Melville, New York, United States

Cartessa Aesthetics sources and provides aesthetic medical devices to dermatologists, plastic surgeons, cosmetic physicians, and medical spas. Cartessa Aesthetics was founded in 2017 and is based in Melville, New York.

Buy -

Seller(S) 1

SELLER

Longshore Capital Partners

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2020
PE ASSETS 210M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Longshore Capital Partners is a private investment firm focused principally on the services sector. The Firm targets control positions in profitable ($5 to $15 million of EBITDA) lower middle-market companies with up to $100 million in revenue and will consider opportunities throughout North America. Longshore prefers companies with growth and high levels of recurring revenue. Longshore Capital Partners was formed in 2020 and is headquartered in Chicago, Illinois.


DEAL STATS #
Overall 1 of 4
Sector (Marketing) 1 of 1
Type (Secondary Buyout) 1 of 3
State (Pennsylvania) 1 of 2
Country (United States) 1 of 4
Year (2021) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-05-25 Stuzo

Philadelphia, Pennsylvania, United States

Stuzo is a provider of loyalty and payments technology solutions for everyday spend retailers, primarily in the fuel and convenience store industries. Stuzo’s Open Commerce product suite consists of: Activate for Intelligent 1:1 Loyalty, Transact for Contactless Commerce, and Experience for Modern Digital Storefronts. Stuzo was founded in 2005 and is based in Philadelphia, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-10-12 Eclipse Advantage

Melbourne, Florida, United States

Eclipse Advantage is a provider of outsourced supply chain workforce solutions specializing in servicing warehouses and distribution centers. The company partners with Fortune 1000 companies and small businesses to help them improve supply chain productivity and efficiency. Eclipse Advantage provides a comprehensive suite of labor services in more than 150 locations across the US and Canada, and focuses on a wide array of end markets. Eclipse Advantage was founded in 2003 and is based in Melbourne, Flordia.

Sell -