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  6. Morgan Stanley Capital Partners Acquires Cadence Education

M&A Deal Summary

Morgan Stanley Capital Partners Acquires Cadence Education

On September 6, 2016, private equity firm Morgan Stanley Capital Partners acquired education company Cadence Education from Audax Private Equity and Five Points Capital

Acquisition Highlights
  • This is Morgan Stanley Capital Partners’ 1st transaction in the Education sector.
  • This is Morgan Stanley Capital Partners’ 19th transaction in the United States.
  • This is Morgan Stanley Capital Partners’ 1st transaction in Arizona.
Investment Fate
  • Cadence Education was sold to a consortium of financial buyers in 2020.

M&A Deal Summary
Date 2016-09-06
Target Cadence Education
Sector Education
Buyer(s) Morgan Stanley Capital Partners
Sellers(s) Audax Private Equity
Five Points Capital
Deal Type Secondary Buyout

Target

Cadence Education

Scottsdale, Arizona, United States
Cadence Education is a premier early childhood educator in the United States, operating more than 225 private preschools across the country. With more than 27 years in business, Cadence has developed unparalleled expertise in preparing students to thrive in the next step of their childhood. It provides parents with peace of mind by giving children an exceptional education every fun-filled day in a place as nurturing as home. Cadence Education was formed in 1969 and is based in Scottsdale, Arizona.

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Buyer(S) 1

Buyer

Morgan Stanley Capital Partners

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1985
Size Large
Type Sector Agnostic
DESCRIPTION

Morgan Stanley Capital Partners (MSCP) is the private investment arm of financial services firm and investment bank Morgan Stanley. MSCP looks to partner with founders looking to leverage Morgan Stanley's resources, as well as fund corporate carveouts, recapitalizations, buyouts, and industry consolidations. Areas of interest include business services, industrials, education, consumer products/services, food/beverage, retail, healthcare, and packaging. MSCP primarily targets businesses operating in North America valued between $75 and $750 million. Morgan Stanley Capital Partners is based in New York City.

DEAL STATS #
Overall 22 of 51
Sector (Education) 1 of 2
Type (Secondary Buyout) 6 of 19
State (Arizona) 1 of 2
Country (United States) 19 of 48
Year (2016) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-08-23 XRI Blue

Houston, Texas, United States

XRI Blue is a water resource management company engaged in the sourcing, production, transportation, storage, and sale of water for use in the upstream exploration & production industry. XRI Blue was founded in 2013 and is based in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-09-30 Nutanix

San Jose, California, United States

Nutanix provides an enterprise cloud platform that converges traditional silos of server, virtualization and storage into one integrated solution and can also connect to public cloud services. Nutanix was founded in 2009 and is based in San Jose, California.

Sell -

Seller(S) 2

SELLER

Audax Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1999
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Audax Private Equity is a private equity firm focused on acquiring control positions in a variety of mid to large North American headquartered companies. The Firm segments its activities into lower middle-market and larger scale investing. Within its larger group, Audax targets profitable businesses valued up to $800 million and within its lower middle-market group, the Firm seeks companies valued up to $125 million. Sectors of interest include business services, consumer products/services, financial services, healthcare services, industrial services, software, and technology. Audax has a special interest in businesses that can benefit from a buy and build investment strategy for growth. Audax Private Equity was formed in 1999 and is based in Boston, Massachusetts.

DEAL STATS #
Overall 51 of 103
Sector (Education) 2 of 2
Type (Secondary Buyout) 25 of 56
State (Arizona) 2 of 2
Country (United States) 49 of 98
Year (2016) 8 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-08-19 Laborie Medical Technologies

Portsmouth, New Hampshire, United States

Laborie Medical Technologies is a manufacturer and supplier of pelvic health and gastrointestinal medical equipment and consumables. Since its founding in 1967, Laborie has been committed to delivering innovative, complete solutions that provide better diagnostics and treatment outcomes to patients worldwide. Laborie Medical Technologies was founded in 1967 and is based in Portsmouth, New Hampshire.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-11-03 Mobileum

Cupertino, California, United States

Mobileum is a provider of mobile telecom roaming and analytics software. Mobileum provides products including Voice and Data Roaming, Fraud Analytics, Data Monetization, Analytics for Customer Experience, and Service Performance Measurement & Assurance, which allow operator networks to deliver a superior customer experience and grow revenue. Mobileum was founded in 2001 and is based in Cupertino, California.

Buy -
SELLER

Five Points Capital

Winston-Salem, North Carolina, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1997
PE ASSETS 1.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Five Points Capital makes both direct private equity and junior capital investments in US-based middle-market companies. Five Points prefers control based investments and will consider opportunities in a variety of industries. For both equity and mezzanine investments, the Firm looks to commit $5 to $25 million of capital in businesses with at least $10 million in sales and $3 million of EBITDA. Five Points Capital was formerly known as BB&T Capital Partners and re-branded in 2015. The Firm was established in 1997 and is based in Winston-Salem, North Carolina.

DEAL STATS #
Overall 28 of 58
Sector (Education) 1 of 3
Type (Secondary Buyout) 16 of 26
State (Arizona) 1 of 1
Country (United States) 28 of 58
Year (2016) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-08-18 Vektek

Emporia, Kansas, United States

Vektek is a designer and manufacturer of hydraulic clamps and related products that are used to secure parts during the metal cutting process associated with CNC machining. Vektek’s extensive product offering of highly-engineered workholding products includes hydraulic clamps, work supports, cylinders, valves, and power supplies. Vektek serves a loyal, highly diverse, and global customer base primarily comprised of end users that machine high-volume precision parts themselves and fixture builders that manufacture and assemble workholding devices that are sold to end users. Vektek’s products serve a wide range of industries including automotive, rail, agriculture, and aerospace. Vektek was founded in 1974 and is based in Emporia, Kansas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-11-01 OutSolve

Metairie, Louisiana, United States

OutSolve provides HR compliance services including anti-discrimination analysis, compensation analysis, EEO-1 and VETS-4212 reports, and labor law posters. The company helps its diverse customer base manage complex federal, state, and local compliance requirements. OutSolve was founded in 1998 and is based in Metairie, Louisiana.

Buy -
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