M&A Deal Summary

The Gores Group, Tennenbaum Capital Partners, Silver Lake and Valhalla Partners Acquire Enterasys Networks

On February 16, 2006, private equity firm The Gores Group, asset manager Tennenbaum Capital Partners, private equity firm Silver Lake and venture capital firm Valhalla Partners acquired information technology company Enterasys Networks for 386M USD

Acquisition Highlights
  • This is The Gores Group’s 11th, Tennenbaum Capital Partners’ 1st, Silver Lake’s 2nd and Valhalla Partners’ 2nd transaction in the Information Technology sector.
  • This is The Gores Group’s , Tennenbaum Capital Partners’ , Silver Lake’s 28th and Valhalla Partners’ 2nd largest (disclosed) transaction.
  • This is The Gores Group’s 23rd, Tennenbaum Capital Partners’ 2nd, Silver Lake’s 12th and Valhalla Partners’ 12th transaction in the United States.
  • This is The Gores Group’s 2nd, Tennenbaum Capital Partners’ 1st, Silver Lake’s 1st and Valhalla Partners’ 4th transaction in Massachusetts.
Investment Fate
  • Enterasys Networks was sold to a publicly-traded strategic buyer in 2013 for 180M USD.

M&A Deal Summary

Date 2006-02-16
Target Enterasys Networks
Sector Information Technology
Buyer(s) The Gores Group
Tennenbaum Capital Partners
Silver Lake
Valhalla Partners
Deal Type Going Private
Deal Value 386M USD

Target

Enterasys Networks

Andover, Massachusetts, United States
Enterasys Networks is a provider of Secure Networks for enterprise customers. Enterasys' innovative network infrastructure offerings deliver the security, productivity and adaptability benefits required by Global 2000 organizations, coupled with the industry's strongest service and support.

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Buyer(S) 4

Buyer

The Gores Group

Beverly Hills, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 4.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION
The Gores Group's headquarters in Beverly Hills, California.
The Gores Group's headquarters in Beverly Hills, California.

The Gores Group is a private equity firm focused on acquiring controlling interests in mature and growing businesses. Gores considers investments across Europe and North America and typically seeks non-core assets of public corporations. While Gores is a generalist investor, the firm has a particular interest in technology, telecommunications, business services, and industrial companies. The Gores Group was formed in 1987 and has offices in Beverly Hills, California, and Boulder, Colorado.


DEAL STATS #
Overall 27 of 74
Sector (Information Technology) 11 of 16
Type (Going Private) 1 of 3
State (Massachusetts) 2 of 3
Country (United States) 23 of 61
Year (2006) 1 of 2
Size (of disclosed) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-02-14 Select Business Solutions

Trumbull, Connecticut, United States

Select Business Solutions is now a leading international software company operating in the application development, business intelligence and process management solutions markets. The company�s business is centered on two product families: enterprise business intelligence solutions and application development solutions with emphasis on methodology, modeling and software reuse.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-02-27 SER Solutions

Dulles, Virginia, United States

SER Solutions delivers unsurpassed contact center management solutions to support business activities such as planned and proactive customer care, telemarketing, collections, fundraising, emergency notifications, and political calling. SER's solutions enable enterprises to turn customers into loyal, long-term sources of recurring revenue by generating increased customer loyalty, expanding up-sell and cross-sell opportunities, maximizing agent productivity, and reducing costs. The company is headquartered in Dulles, Virginia with operations in North America, Europe, and Asia Pacific.

Buy -
Buyer

Tennenbaum Capital Partners

Santa Monica, California, United States

Category Asset Manager
Founded 1999
PE ASSETS 18.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Tennenbaum Capital Partners' headquarters in Santa Monica, California.
Tennenbaum Capital Partners' headquarters in Santa Monica, California.

Tennenbaum Capital Partners is a private investment group focused on providing financing solutions to middle-market companies in a variety of sectors. The Firm separates its activity into two segments - performing and distressed. The performing group looks to invest $10 to $125 million to support recapitalizations, LBOs, acquisitions, and growth capital needs of companies valued between $100 million and $1.5 billion. The special situations group looks to provide $20 to $125 million to support rescue needs, as well as fund complex situations or secondary market purchases. Tennenbaum primarily considers opportunities in North America and Europe, but will consider other geographies. Tennenbaum Capital Partners was formed in 1999 and is based in Santa Monica, California.


DEAL STATS #
Overall 2 of 9
Sector (Information Technology) 1 of 2
Type (Going Private) 1 of 1
State (Massachusetts) 1 of 2
Country (United States) 2 of 8
Year (2006) 1 of 2
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-06-29 Circana

Chicago, Illinois, United States

Circana is a provider of big data, predictive analytics and forward-looking insights that help CPG companies, OTC health care organizations, retailers, financial services and media companies grow their businesses. Circana was founded in 1979 and is based in Chicago, Illinois.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-03 Online Resources

Chantilly, Virginia,

Online Resources Corporation powers financial interactions between millions of consumers and the company’s financial institution and biller clients. Backed by its proprietary real-time payments gateway that links banks directly with billers, the company provides web and phone-based financial services, electronic payments and marketing services to drive consumer adoption.

Buy -
Buyer

Silver Lake

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 104.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Silver Lake is a mega-sized private equity firm focused on a broad range of growth investments in and acquisitions of technology companies. Silver Lake is subdivided into several investing groups including Silver Lake Partners, Silver Lake Sumeru, Silver Lake Waterman, Silver Lake Alpine, and Silver Lake Kraftwerk. Silver Lake Partners pursues large-scale private investments in companies within the technology, tech-enabled and related growth industries. Silver Lake Sumeru invests in middle market technology companies with established business models and attractive growth prospects where there is an opportunity to create value through operational transformation. Silver Lake Waterman provides growth capital to later-stage companies in the technology and technology-enabled industries, offering flexible solutions to finance expansion and acquisitions. Silver Lake Alpine is Silver Lake's debt and credit investing arm. Silver Lake Kraftwerk provides growth capital to technology and tech-enabled businesses driving efficiency across the operations, energy, and resources industries. Silver Lake Partners was formed in 1999 is headquartered in Menlo Park, California.


DEAL STATS #
Overall 14 of 135
Sector (Information Technology) 2 of 19
Type (Going Private) 4 of 17
State (Massachusetts) 1 of 5
Country (United States) 12 of 95
Year (2006) 1 of 5
Size (of disclosed) 28 of 30
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-05 Equinox Fitness

New York, New York, United States

Equinox Fitness is an operator of full-service high end fitness clubs, operating 50 clubs and yoga studios in eight metropolitan areas across the country. As an internationally recognized arbiter of luxury, Equinox offers members unparalleled, bespoke experiences in the fields of movement, nutrition and regeneration, and remains grounded by substance but elevated in style. Equinox Fitness is based in New York City.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-04-27 Sensata Technologies

Attleboro, Massachusetts, United States

Sensata Technologies is a provider of sensing, electrical protection, control, and power management solutions with operations and business centers in 11 countries. Sensata's products improve safety, efficiency, and comfort for millions of people every day in automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning and ventilation, data, telecommunications, recreational vehicle, and marine applications. Sensata Technologies was founded in 1916 and is based in Attleboro, Massachusetts.

Buy -
Buyer

Valhalla Partners

Vienna, Virginia, United States

Investor Investor Investor


Category Venture Capital Firm
Founded 2002
PE ASSETS 440M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Valhalla Partners is a private equity and venture capital firm focused primarily on providing capital to technology companies in the Mid-Atlantic US. Valhalla will invest at all company stages, including early-stage needs as well as more mature company situations such as divestitures. Sub-sectors of tech Valhalla will consider include software, internet, digital media, mobile, and data storage. Valhalla Partners was formed in 2002 and is based in Vienna, Virginia.


DEAL STATS #
Overall 12 of 41
Sector (Information Technology) 2 of 10
Type (Going Private) 2 of 3
State (Massachusetts) 4 of 7
Country (United States) 12 of 41
Year (2006) 3 of 4
Size (of disclosed) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 Jumptap

Boston, Massachusetts, United States

Jumptap, Inc. is a carrier-branded mobile search and advertising.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-07-03 Parature

Herndon, Virginia, United States

Parature, is a provider of cloud-based customer engagement solutions.

Buy -