Merger • Information Technology

GXS Acquires Inovis

On December 8, 2009, GXS acquired information technology company Inovis from Parallax Capital Partners, Golden Gate Capital and American Capital

Acquisition Context
  • This is GXS’s 3rd transaction in the Information Technology sector.
  • This is GXS’s 2nd transaction in the United States.
  • This is GXS’s 1st transaction in Georgia.

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M&A Deal Summary

Date December 8, 2009
Target Inovis
Sector Information Technology
Buyer(s) GXS
Sellers(s) Parallax Capital Partners
Golden Gate Capital
American Capital
Deal Type Merger

Target Company

Inovis

Alpharetta, Georgia, United States
InovisTM, Inc. (formerly Harbinger and Extricity) helps companies to rapidly and cost-efficiently build, grow and manage B2B communities.
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Buyer Overview 1

Buyer

GXS

Gaithersburg, Maryland, United States

Category Company
Founded 1967
Sector Information Technology
DESCRIPTION

GXS is a leading global provider of B2B e-commerce solutions operating the world’s largest and most expansive network of integrated business communities. Organizations worldwide, including more than 70 percent of the Fortune 500, leverage the on-demand services on GXS Trading Grid® to extend supply chain networks, optimize product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. GXS Managed Services, GXS’ B2B outsourcing solution, empowers customers with the expertise, technical infrastructure and program support to conduct B2B e-commerce with trading partners globally. Based in Gaithersburg, Md., GXS has an extensive global network and has local offices in the Americas, Europe and Asia-Pacific regions.


Deal Context for Buyer #
Overall 5 of 6
Sector: Information Technology 3 of 3
Type: Merger 1 of 1
State: Georgia 1 of 1
Country: United States 2 of 2
Year: 2009 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-01-05 Interchange Servicos S.A.

São Paulo, Brazil

Interchange Servicos S.A. is a provider of electronic data interchange (EDI) services.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-03-29 RollStream

Gaithersburg, Maryland,

RollStream is a leader in enterprise community management. The company’s SaaS platform optimizes supplier relationships through a powerful collaboration platform that includes master data management, robust communications tools, and process applications. Global retailers, healthcare suppliers and consumer companies use RollStream to collaborate with their supplier community to improve supplier registration cycle times, compliance management, and dispute resolution. RollStream is based in McLean, VA.

Buy -

Seller Profiles 3

SELLER

Parallax Capital Partners

Laguna Hills, California, United States

Investor


Category Private Equity Firm
Founded 1999
Size Middle-Market
Type Sector Focused
DESCRIPTION

Parallax Capital Partners is a private equity firm focused on acquiring middle-market software and related technology companies. Prospective transactions include corporate divestitures, take privates, management buyouts, private company acquisitions, and recapitalizations. Target companies typically have $5 to $100 million in revenue and offer mission-critical products or services. Parallax will consider opportunities in North and South America, Europe, or Asia. Parallax Capital Partners was formed in 1999 and is based in Laguna Hills, California.


Deal Context for Seller #
Overall 3 of 11
Sector: Information Technology 1 of 2
Type: Merger 1 of 1
State: Georgia 1 of 1
Country: United States 2 of 10
Year: 2009 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-14 MultiGen-Paradigm

Richardson, Texas, United States

MultiGen-Paradigm, Inc. is a supplier of real time 3D solutions, commercial-off-the-shelf (COTS) software for visualization, simulation and training applications. MultiGen Paradigm's focus is to provide end-to-end content creation and delivery solutions for a wide variety of applications including flight simulation, sensor and IR solutions, urban simulation, 3D GIS visualization, simulation based training and audio simulation.

Sell $16M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-27 Daptiv Solutions

Seattle, Washington, United States

Daptiv Solutions LLC is the on-demand project management and collaborative business software that enables companies of all sizes to transform their mid-office business operations.

Buy -
SELLER

Golden Gate Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Golden Gate Capital is a large private equity firm focused on buyout and growth equity investments across a wide variety of industries. The Firm partners with management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company's value. Sectors of interest include software and IT services, semiconductors, electronics, consumer products and retail, financial services, business services, and media. Prospective transaction types include public-to-privates, corporate extractions, bankruptcy auctions, and recapitalizations. Golden Gate Capital was formed in 2000 and is based in San Francisco, California.


Deal Context for Seller #
Overall 16 of 86
Sector: Information Technology 1 of 7
Type: Merger 1 of 5
State: Georgia 2 of 5
Country: United States 13 of 78
Year: 2009 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-10-01 Devcon Security Systems

Hollywood, Florida, United States

Devcon Security is a provider of installation, monitoring and related electronic security services. Devcon currently monitors more than 140,000 commercial and residential systems in Florida, New York City and Staten Island.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-02-22 RedPrairie

Alpharetta, Georgia, United States

RedPrairie Corp. is a developer and marketer of software for managing warehousing and transportation logistics.

Sell -
SELLER

American Capital


Category Private Equity Firm
Founded 1997
PE ASSETS 22.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Capital was a publicly traded buyout and mezzanine investment firm. American Capital invested in buyouts, growth capital financings, acquistion financings, and recapitalizations. The Firm looked to finance businesses with at least $4 million in EBITDA and valued between $20 and $500 million. American Capital ws a generalist firm with broad interest in traditional industries such as manufacturing, distribution, and services. American Capital's European investment affiliate is European Capital. European Capital looked to invest $10 to $600 million of equity, mezzanine, and/or senior debt in similar opportunities across Europe. American Capital was formed in 1997 and in January 2017, merged with Ares Capital Management.


Deal Context for Seller #
Overall 106 of 194
Sector: Information Technology 5 of 10
Type: Merger 6 of 10
State: Georgia 6 of 10
Country: United States 104 of 186
Year: 2009 7 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-10-14 Imperial Supplies

Green Bay, Wisconsin, United States

Imperial Supplies LLC is a value-added distributor of after-market components to fleet and facility-based markets.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-12-16 Jones Stephens

Moody, Alabama, United States

Jones Stephens Corp. is a value added designer, manufacturer, marketer, and distributor of specialty plumbing products, primarily serving plumbing wholesalers, do-it-yourself (“DIY”) retailers and hardware stores. Jones Stephens offers its products under the well-respected Jones Stephens™ and PlumBest® brand names. The Company’s products are used in repair, remodel and new construction applications within both the residential and commercial markets.

Sell -