M&A Deal Summary

Francisco Partners, TPG and Shah Capital Partners Acquire Smart Modular Technologies

On February 12, 2004, private equity firms Francisco Partners, TPG and Shah Capital Partners acquired technology hardware company Smart Modular Technologies from Solectron for 100M USD

Acquisition Highlights
  • This is Francisco Partners’ 1st, TPG’s 4th and Shah Capital Partners’ 1st transaction in the Technology Hardware sector.
  • This is Francisco Partners’ 25th, TPG’s 101st and Shah Capital Partners’ largest (disclosed) transaction.
  • This is Francisco Partners’ 9th, TPG’s 32nd and Shah Capital Partners’ 1st transaction in the United States.
  • This is Francisco Partners’ 4th, TPG’s 9th and Shah Capital Partners’ 1st transaction in California.
Investment Fate
  • Smart Modular Technologies went public in 2005.
  • Smart Modular Technologies was sold to a consortium of financial buyers in 2011 for 645M USD.
  • Smart Modular Technologies went public in 2017.

M&A Deal Summary

Date 2004-02-12
Target Smart Modular Technologies
Sector Technology Hardware
Buyer(s) Francisco Partners
TPG
Shah Capital Partners
Sellers(s) Solectron
Deal Type Divestiture
Deal Value 100M USD

Target

Smart Modular Technologies

Newark, California, United States
Smart Modular Technologies is a developer and manufacturer of DRAM and Flash-based modules and subsystems for computing, communications, embedded, and defense applications. Smart Modular Technologies was founded in 1988 and is based in Newark, California.

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Buyer(S) 3

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 9 of 149
Sector (Technology Hardware) 1 of 10
Type (Divestiture) 5 of 32
State (California) 4 of 38
Country (United States) 9 of 124
Year (2004) 2 of 5
Size (of disclosed) 25 of 29
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-01-01 Aderant Holdings

Atlanta, Georgia, United States

Aderant Holdings, Inc. is an independent legal software provider that offers comprehensive practice, financial and case management solutions for law and professional services firms of all sizes worldwide.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-03-24 Ultra Clean Holdings

Hayward, California, United States

Ultra Clean Holdings is a developer and supplier of critical subsystems for the semiconductor capital equipment, medical device, energy, research, and flat panel industries. Ultra Clean Holdings was founded in 1991 and is based in Hayward, California.

Sell -
Buyer

TPG

Fort Worth, Texas, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 137.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TPG Capital is a global, mega-sized private investment firm that manages a family of funds focused on private equity, real estate, venture capital, public equity and debt investing. TPG invests in opportunities across a broad range of industries and geographies. TPG generally seeks to invest in established businesses that can benefit from the Firm's operational experience and connections. Industries of interest include consumer, retail, healthcare, industrials, digital media, natural resources, energy, real estate, technology, and software. TPG was formerly known as Texas Pacific Group and was originally established in 1992 by David Bonderman, James Coulter and William Price. The Firm is based in Forth Worth, Texas with additional offices in Europe, Asia, and Australia.


DEAL STATS #
Overall 45 of 421
Sector (Technology Hardware) 4 of 7
Type (Divestiture) 7 of 35
State (California) 9 of 85
Country (United States) 32 of 276
Year (2004) 1 of 10
Size (of disclosed) 101 of 105
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-11 Punch

Burton upon Trent, United Kingdom

Punch is a pub and bar operator in the United Kingdom, with around 1,300 leased pubs. Punch Taverns was formed in 1997 and is based in Burton upon Trent, United Kingdom.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-03-23 Denbury

Plano, Texas, United States

Denbury is an independent energy company with operations and assets focused on Carbon Capture, Utilization, and Storage (“CCS”) and Enhanced Oil Recovery (“EOR”) in the Gulf Coast and Rocky Mountain regions. For over two decades, the Company has maintained a unique strategic focus on utilizing CO2 in its EOR operations and since 2012 has also been active in CCS through the injection of captured industrial-sourced CO2. It currently injects over four million tons of captured industrial-sourced CO2 annually, with an objective to fully offset its Scope 1, 2, and 3 CO2 emissions by 2030, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations. Danbury was incorporated in 2003 and is based in Plano, Texas.

Sell -
Buyer

Shah Capital Partners

Santa Clara, California, United States

Category Private Equity Firm
Founded 2003
Size Small
Type Sector Agnostic
DESCRIPTION

Shah Capital Partners is a private investment firm focused on technology businesses. Specific areas of interest includes electronics, design services, semiconductors, storage, networking and related outsourcing, software and services. The Firm looks to invest in or acquire profitable companies and will consider a variety of transaction situations including buyouts, take privates, recapitalizations, acquisition financings, and turnarounds. Shah Capital Partners was formed in 2003 and is based in Santa Clara, California.


DEAL STATS #
Overall 1 of 3
Sector (Technology Hardware) 1 of 1
Type (Divestiture) 1 of 3
State (California) 1 of 1
Country (United States) 1 of 1
Year (2004) 1 of 3
Size (of disclosed) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-10-01 C-MAC Aerospace

Amersham, United Kingdom

C-MAC Aerospace dba C-MAC MicroTechnology is a leader in the design, manufacturing, and testing of high-performance, high-reliability ("HiRel") microcircuits and frequency control products. C-MAC is a qualified and recognized supplier in the industrial, communications, automotive, medical, and aerospace industries and is ideally positioned, through its products and technology service offering, to benefit from the organic growth and outsourcing trends across its global footprint. C-MAC is headquartered Amersham, Buckinghamshire, United Kingdom.

Buy -

Seller(S) 1

SELLER

Solectron

Milpitas, California, United States

Category Company
Sector Electronics
DESCRIPTION

Solectron Corporation was a global electronics manufacturing company for original equipment manufacturers. It was the first electronics manufacturing services industry in 1977.


DEAL STATS #
Overall 2 of 4
Sector (Technology Hardware) 2 of 2
Type (Divestiture) 2 of 4
State (California) 1 of 1
Country (United States) 1 of 2
Year (2004) 2 of 4
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-02-02 Dy 4 Systems

Kanata, Ontario, Canada

Dy 4 Systems is engaged in rugged embedded computing solutions for the defense and aerospace industries. Using standard, commercially available computing technologies, referred to as commercial-off-the-shelf or COTS, Dy 4 customizes the products to perform reliably in rugged conditions, such as extreme temperature, terrain and/or speed.

Sell $110M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-03-22 Stream International

Wellesley, Massachusetts, United States

Stream Global Services (formerly Global BPO Services) is a global provider of business process outsourcing, delivering a range of services, including technical support, customer service, sales and customer retention.

Sell -