M&A Deal Summary

Francisco Partners Acquires PayScale

On April 25, 2019, private equity firm Francisco Partners acquired software company PayScale from Warburg Pincus for 325M USD

Acquisition Highlights
  • This is Francisco Partners’ 39th transaction in the Software sector.
  • This is Francisco Partners’ 14th largest (disclosed) transaction.
  • This is Francisco Partners’ 86th transaction in the United States.
  • This is Francisco Partners’ 5th transaction in Washington.

M&A Deal Summary
Date 2019-04-25
Target PayScale
Sector Software
Buyer(s) Francisco Partners
Sellers(s) Warburg Pincus
Deal Type Secondary Buyout
Deal Value 325M USD
Advisor(s) Raymond James - Investment Banking (Financial)
Willkie Farr & Gallagher (Legal)

Target

PayScale

Seattle, Washington, United States
PayScale, Inc. offers modern compensation software and the most precise, real-time, data-driven insights for employees and employers alike. PayScale was founded in 2002 and is based in Seattle, Washington.

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Buyer(S) 1

Buyer

Francisco Partners

San Francisco, California, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1999
PE ASSETS 45.0B USD
Size Mega
Type Sector Focused
DESCRIPTION
Francisco Partners' headquarters in San Francisco, California.
Francisco Partners' headquarters in San Francisco, California.

Francisco Partners is a private equity firm focused exclusively on investments in technology and technology-enabled services. Specific areas of interest include semiconductors, capital equipment, electronics components, systems and manufacturing, IT services and business process outsourcing, communications, security and enterprise applications, and infrastructure software. Prospective investment situations include divisional buyouts, growth equity financings, acquisitions of private companies, sponsored mergers and acquisitions, and take-privates. Francisco Partners looks for opportunities where it can commit a minimum of $100 million per investment. Francisco Partners was formed in 1999 and is based in San Francisco, California.

DEAL STATS #
Overall 103 of 149
Sector (Software) 39 of 50
Type (Secondary Buyout) 16 of 24
State (Washington) 5 of 6
Country (United States) 86 of 124
Year (2019) 4 of 8
Size (of disclosed) 14 of 29
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-04 Acoustic

Burlington, Massachusetts, United States

Acoustic is a provider of marketing automation tools, marketing analytics, and an AI-powered content management system. Acoustic is based in Burlington, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-28 LiveU

Hackensack, New Jersey, United States

LiveU is the pioneer of a bonded cellular technology-based live video transmission platform, offered to major live broadcast news networks and sports content owners globally. LiveU's technology enables customers to apply innovation and automation to the entire production workflow. LiveU was founded in 2006 and is based in Hackensack, New Jersey.

Buy -

Seller(S) 1

SELLER

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.

DEAL STATS #
Overall 179 of 251
Sector (Software) 12 of 22
Type (Secondary Buyout) 28 of 42
State (Washington) 5 of 5
Country (United States) 104 of 137
Year (2019) 7 of 21
Size (of disclosed) 48 of 63
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-17 Brigham Minerals

Austin, Texas, United States

Brigham Minerals is an oil and gas company. Brigham focuses on utilizing advanced exploration, drilling and completion technologies to explore, develop and produce onshore U.S. crude oil and liquids reserves.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-03 Brightly Software

Cary, North Carolina, United States

Brightly Software is a provider of cloud-based operations management software to the education, government, healthcare, and manufacturing verticals. Brightly Software was founded in 1999 and is headquartered in Cary, North Carolina.

Sell -
Mergr

Product

Company

Legal