Add-on Acquisition • Internet Software and Services

Noble Systems Acquires TelStar Hosted Services

On October 20, 2012, Noble Systems acquired internet software and services company TelStar Hosted Services from Grindstone Partners and Williams & Gallagher

Acquisition Context
  • This is Noble Systems’ 1st transaction in the Internet Software and Services sector.
  • This is Noble Systems’ 4th transaction in the United States.
  • This is Noble Systems’ 1st transaction in Virginia.

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M&A Deal Summary

Date October 20, 2012
Target TelStar Hosted Services
Sector Internet Software and Services
Buyer(s) Noble Systems
Sellers(s) Grindstone Partners
Williams & Gallagher
Deal Type Add-on Acquisition

Target Company

TelStar Hosted Services

Leesburg, Virginia, United States
TelStar Hosted Services, Inc. is a provider of Communication-as-a-Service via the cloud that is affordable, scalable, flexible,stable and reliable.
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Buyer Overview 1

Buyer

Noble Systems

Atlanta, Georgia, United States

Category Company
Founded 1989
Sector Software
DESCRIPTION

Noble Systems Corporation is a provider in unified contact center technology solutions, providing innovative products since 1989. The scalable, integrated Noble solutions include advanced ACD and predictive dialing; unified contact processing; and integrated IVR, recording, messaging, quality/monitoring systems, scripting, workforce optimization, real-time reporting and management, and analytics and decisioning tools.


Deal Context for Buyer #
Overall 4 of 4
Sector: Internet Software and Services 1 of 1
Type: Add-on Acquisition 4 of 4
State: Virginia 1 of 1
Country: United States 4 of 4
Year: 2012 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-09-27 ALI Solutions

Austin, Texas, United States

ALI Solutions is a provider of contact center solutions including best-in-class analytics applications for the collections market.

Buy -

Seller Profiles 2

SELLER

Grindstone Partners

Alexandria, Virginia, United States

Investor


Category Private Equity Firm
Founded 2009
Size Small
Type Sector Agnostic
DESCRIPTION

Grindstone Partners is a private equity firm specializing in buyouts and growth capital investments in small and mid market companies throughout the US. The Firm looks to invests $2 to $20 million equity per transaction. Areas of interest includes manufacturing, healthcare, direct marketing, telecommunication, software, building products and business services. Grindstone Partners was formed in 2009 and is based in Alexandria, Virginia.


Deal Context for Seller #
Overall 1 of 3
Sector: Internet Software and Services 1 of 1
Type: Add-on Acquisition 1 of 2
State: Virginia 1 of 3
Country: United States 1 of 3
Year: 2012 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-05-06 Young at Heart Pharmacy

Carmel, Indiana, United States

Young at Heart Pharmacy supplies pharmaceuticals to patients in group homes, workplace clinics, long term care facilities and assisted living facilities using Lean Production, ISO 9000 and Six Sigma operating procedures.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-01 SageWater

Alexandria, Virginia, United States

SageWater is a provider of pipe restoration services on a continual basis to apartment and condominium buildings to stop infrastructure corrosion. SageWater has repiped more than 100,000 occupied multi-family residential units, replacing over 35 million feet of pipe in apartment complexes, condominiums, and office buildings. SageWater was founded in 1988 and is based in Alexandria, Virginia.

Buy -
SELLER

Williams & Gallagher

Chevy Chase, Maryland, United States

Category Private Equity Firm
Founded 2004
Size Small
Type Sector Agnostic
DESCRIPTION

Williams & Gallagher was a private investment firm focused on small and mid-sized opportunities in a variety of sectors. The Firm targets businesses with defensible market positions, stable operating margins, high return on assets, and strong balance sheets. W&G will consider both minority and control investments and looks to invest $200K to $1 million per transaction. Areas of interest includes distribution, business services, consumer products/services, healthcare, energy/chemical distribution, retail, communications and radio/TV/cable. Prospective transaction situations include buyouts, acquisition financings, growth financings, and restructurings. Williams & Gallagher was formed in 2004 and is based in Chevy Chase, Maryland.


Deal Context for Seller #
Overall 3 of 3
Sector: Internet Software and Services 1 of 1
Type: Add-on Acquisition 1 of 1
State: Virginia 1 of 1
Country: United States 3 of 3
Year: 2012 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-04-01 Regency Healthcare Group

Nashville, Tennessee, United States

Regency Healthcare Group is a Medicare-certified provider of home-based hospice services serving Birmingham and northeast and central Alabama, Georgia, South Carolina, Tennessee, Missouri, and Florida.

Sell -