Buyout (LBO, MBO, MBI) • Software

Tandem Expansion Fund and Hawthorn Equity Partners Acquire NGRAIN

On January 1, 2011, growth capital firm Tandem Expansion Fund and private equity firm Hawthorn Equity Partners acquired software company NGRAIN

Acquisition Context
  • This is Tandem Expansion Fund’s 2nd and Hawthorn Equity Partners’ 1st transaction in the Software sector.
  • This is Tandem Expansion Fund’s 5th and Hawthorn Equity Partners’ 2nd transaction in Canada.
  • This is Tandem Expansion Fund’s 2nd and Hawthorn Equity Partners’ 1st transaction in British Columbia.
Investment Fate
  • NGRAIN was sold to a publicly-traded strategic buyer in 2018.

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M&A Deal Summary

Date January 1, 2011
Target NGRAIN
Sector Software
Buyer(s) Tandem Expansion Fund
Hawthorn Equity Partners
Deal Type Buyout (LBO, MBO, MBI)

Target Company

NGRAIN

Vancouver, British Columbia, Canada
NGRAIN (Canada) Corp. is a designer, developer and marketer of 3D graphics-based software content and tools to primarily service the Military and Commercial aerospace sectors. NGRAIN (Canada) Corp. was established in 2000 and is based in Vancouver, British Columbia.
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Buyers Overview 2

Buyer

Tandem Expansion Fund

Toronto, Ontario, Canada

Category Growth Capital Firm
Founded 2009
Size Small
Type Sector Focused
DESCRIPTION

Tandem Expansion is a private growth capital fund seeking to invest in small to mid-sized tech businesses in Canada. Specific areas of interest include IT (hardware, software, service), clean tech, energy/resource, technology, advanced materials, and life science. The Firm looks to invest $10 to $30 million in fast growing businesses with $5 to $50 million in revenues. Investment proceeds are typically used to fund organic growth or provide acquisition capital. Tandem was formed in 2009 and is based in Montreal, Québec.


Deal Context for Buyer #
Overall 5 of 11
Sector: Software 2 of 4
Type: Buyout (LBO, MBO, MBI) 2 of 3
State: British Columbia 2 of 2
Country: Canada 5 of 10
Year: 2011 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-11-02 Solace Systems

Ottawa, Ontario, Canada

Solace Systems provides market-leading technology for real-time, event-based movement of data. Solace’s proprietary ‘event mesh’ platform securely and reliably moves event data into, out of, and across enterprise applications. Solace Systems was founded in 2001 and is based in Ottawa, Ontario.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-16 Acquisio

Brossard, Quebec, Canada

Acquisio, Inc. is a local business software provider for online advertising management. Acquisio empowers SMBs to thrive in the digital economy by facilitating customer acquisition using ad platforms such as Google AdWords, Facebook Ads, and Bing Ads. Acquisio, Inc. was founded in 2003 and is based in Brossard, Quebec.

Buy $12M
Buyer

Hawthorn Equity Partners

Chicago, Illinois, United States

Category Private Equity Firm
Founded 2005
Size Small
Type Sector Agnostic
DESCRIPTION

Hawthorn Equity Partners is a private equity firm focused on investing in growth-oriented, middle-market companies across North America. Hawthorn does not have any sector preferences and will invest in a variety of situations or business stages. Transaction situations include companies in need of growth capital, recapitalizations, family successions, special situations, carve-outs, and consolidations. Hawthorn Equity Partners is based in Chicago.


Deal Context for Buyer #
Overall 5 of 7
Sector: Software 1 of 1
Type: Buyout (LBO, MBO, MBI) 3 of 3
State: British Columbia 1 of 1
Country: Canada 2 of 3
Year: 2011 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-11-02 Solace Systems

Ottawa, Ontario, Canada

Solace Systems provides market-leading technology for real-time, event-based movement of data. Solace’s proprietary ‘event mesh’ platform securely and reliably moves event data into, out of, and across enterprise applications. Solace Systems was founded in 2001 and is based in Ottawa, Ontario.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-06-01 Natural Food Holdings

Sioux City, Iowa, United States

Natural Food Holdings is a manufacturer and marketer of all-natural fresh and prepared meat products marketed under the brands Niman Ranch, Prairie Grove Farms and Sioux-Preme. Natural Food Holdings was founded in 1969 and is based in Sioux City, Iowa.

Sell -