Secondary Buyout • Software

Morgan Stanley Capital Partners and Constitution Capital Partners Acquire Clarity

On January 25, 2019, private equity firms Morgan Stanley Capital Partners and Constitution Capital Partners acquired software company Clarity from Guidepost Growth Equity

Acquisition Context
  • This is Morgan Stanley Capital Partners’ 3rd and Constitution Capital Partners’ 1st transaction in the Software sector.
  • This is Morgan Stanley Capital Partners’ 27th and Constitution Capital Partners’ 39th transaction in the United States.
  • This is Morgan Stanley Capital Partners’ 1st and Constitution Capital Partners’ 2nd transaction in Connecticut.
Investment Fate
  • Clarity was sold to a strategic buyer in 2025.

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M&A Deal Summary

Date January 25, 2019
Target Clarity
Sector Software
Buyer(s) Morgan Stanley Capital Partners
Constitution Capital Partners
Sellers(s) Guidepost Growth Equity
Deal Type Secondary Buyout
Advisor(s) Triple Tree (Financial)

Target Company

Clarity

Madison, Connecticut, United States
Clarity is a data and technology-driven provider of member communication solutions for health insurance payors, third party administrators (“TPAs”), and dental insurance companies. The Company’s software collects, consolidates and cleanses its customers’ data from multiple sources to generate compliant and personalized digital member communications across the enrollment, claims, and payments, and compliance functions of its customers. Clarity was founded in 2007 and is based in Madison, Connecticut.
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Buyers Overview 2

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 Context for Buyer #
Overall 30 of 52
Sector: Software 3 of 3
Type: Secondary Buyout 8 of 20
State: Connecticut 1 of 1
Country: United States 27 of 48
Year: 2019 1 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-04 Uplight

Boulder, Colorado, United States

Uplight is a provider of energy management software, hardware, and services for consumers and utility companies. Uplight data analytics on more than 123 million homes creates new business opportunities for any product or service provider connected to the home. Today, this includes electric and gas utilities, and energy retailers. Built over more than a decade, the Tendril Platform delivers real-time, ever-evolving data about the home and how people use energy in it. These rich insights help our customers improve customer acquisition, increase engagement and orchestrate home energy experiences. Uplight was founded in 2004 and is based in Boulder, Colorado.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-14 Hornet Midstream Holdings

Romney, West Virginia, United States

Hornet Midstream Holdings LLC is a 15-mile, high-pressure gathering system in West Virginia that connects to the Eureka system. Hornet Midstream Holdings LLC is based in Romney, West Virginia.

Sell -
Buyer
DESCRIPTION

Constitution Capital Partners is a private equity and asset management firm focused on opportunities throughout North America. Constitution Capital typically invests in private equity partnerships, however the Firm also makes direct private equity and credit investments. Constitution Capital Partners does not have any sector preferences. Constitution Capital Partners was formed in 2008 and is headquartered in Andover, Massachusetts.


Deal Context for Buyer #
Overall 43 of 89
Sector: Software 1 of 1
Type: Secondary Buyout 15 of 40
State: Connecticut 2 of 2
Country: United States 39 of 83
Year: 2019 1 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-17 Artisan Design Group

Dallas, Texas, United States

Artisan Design Group is a dealer of flooring products and services, providing design, procurement, installation and quality control of flooring and complimentary products for homebuilders. Artisan Design Group was founded in 2016 and is based in Dallas, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-01 Citizens Rx

Oak Park, Illinois, United States

Citizens Rx is a provider of pharmacy benefit management services, including formulary management, claims processing, and rebate administration. Citizens Rx was founded in 2009 and is based in Oak Park, Illinois.

Buy -

Seller Profile 1

DESCRIPTION

North Bridge is an investment firm focused on providing seed, venture, and growth capital to technology enabled companies. Specific areas of interest include communications and infrastructure, software, materials, and digital media. For later stage growth transactions, North Bridge generally looks to acquire majority (or minority) positions to help fund liquidity needs, growth initiatives, or acquisitions. North Bridge was formed in 1994 and has offices in Waltham, Massachusetts and Palo Alto, California.


Deal Context for Seller #
Overall 13 of 22
Sector: Software 4 of 7
Type: Secondary Buyout 4 of 7
State: Connecticut 1 of 1
Country: United States 13 of 21
Year: 2019 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-03-19 Aeropost

Miami, Florida, United States

Aeropost is an end-to-end eCommerce and logistics company with more than 100 Aeropost stores providing local customer service to our customers. The Aeropost.com marketplace opens the world of online shopping in the U.S. to millions of buyers across Latin America and the Caribbean. Shoppers can combine products from multiple retailers in a single cart and pay the full landed cost of their purchases at checkout using local currency and their preferred local payment methods. Aeropost was founded in 1986 and is based in Miami, Florida.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-20 ActiveViam

Paris, France

ActiveViam is a provider of in-memory data analytics software solutions designed for the significant speed and data volume demands of financial service and retail applications. ActiveViam was founded in 2005 and is based in Paris, France.

Buy -