Recapitalization • Software

The CapStreet Group and Stellus Capital Management Acquire PCS Software

On July 9, 2019, private equity firms The CapStreet Group and Stellus Capital Management acquired software company PCS Software

Acquisition Context
  • This is The CapStreet Group’s 1st and Stellus Capital Management’s 1st transaction in the Software sector.
  • This is The CapStreet Group’s 31st and Stellus Capital Management’s 13th transaction in the United States.
  • This is The CapStreet Group’s 25th and Stellus Capital Management’s 3rd transaction in Texas.
Investment Fate
  • PCS Software was sold to a consortium of financial buyers in 2022.

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M&A Deal Summary

Date July 9, 2019
Target PCS Software
Sector Software
Buyer(s) The CapStreet Group
Stellus Capital Management
Deal Type Recapitalization
Advisor(s) Vaquero Capital (Financial)
Sidley (Legal)

Target Company

PCS Software

Houston, Texas, United States
PCS Software develops and directly markets an integrated transportation management software solution for the inland trucking industry in the United States and Canada. PCS Software was founded in 1997 and is based in Houston, Texas.
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Buyers Overview 2

Buyer

The CapStreet Group

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1990
PE ASSETS 650M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

The CapStreet Group is a private equity firm that primarily invests in businesses that were previously owned by entrepreneurs, families or other non-institutional investors. CapStreet typically looks for control investment situations, and has a preference for businesses located in the Southwest US. CapStreet typically invests between $10 million and $25 million of equity in companies valued less than $150 million. The CapStreet Group was formed in 1990 and is based in Houston, Texas.


Deal Context for Buyer #
Overall 31 of 38
Sector: Software 1 of 1
Type: Recapitalization 14 of 18
State: Texas 25 of 28
Country: United States 31 of 38
Year: 2019 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-04 Trinity Steel Fabricators

Trinity, Texas, United States

Trinity Steel Fabricators, Inc. is a provider of structural steel fabrication services to the refining, petrochemical, oil & gas, diversified chemical and power end markets. Trinity Steel Fabricators was established in 1976 and is based in Trinity, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-08-08 Surgical Notes

Dallas, Texas, United States

Surgical Notes is a healthcare solutions company that provides a comprehensive and integrated suite of products and services designed to streamline the reimbursement process, reduce administrative costs, and better manage information for US ambulatory surgical centers (“ASC”). Surgical Notes was established in 1997 and is based in Dallas, Texas.

Buy -
Buyer

Stellus Capital Management

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2004
PE ASSETS 3.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Stellus Capital Management is a provider of debt and equity capital to middle-market companies headquartered throughout the US and Canada. For credit commitments, Stellus looks to provide $10 to $50 million of capital to help support buyouts, acquisitions, recapitalization, growth opportunities, rescue financing, distressed situations, as well as bridge loans. Sectors' of interest for Stellus' credit practice includes business services, energy, general industrial, government, healthcare, software and specialty finance. Stellus' equity practice seeks to provide $20 to $100 million to small and mid-sized energy (upstream, oilfield services, midstream) companies. Stellus Capital was originally formed in 2004 as Laminar Direct Capital and operated as the direct investing unit of D.E. Shaw. The Group became independent in 2012. Stellus has offices in Houston, New York City, and Washington DC.


Deal Context for Buyer #
Overall 13 of 87
Sector: Software 1 of 4
Type: Recapitalization 3 of 10
State: Texas 3 of 16
Country: United States 13 of 84
Year: 2019 4 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-05-01 Health Monitor Network

Montvale, New Jersey, United States

Health Monitor Network is a direct-to-patient (DTP) company focused on providing high-quality patient education through digital, print, and mobile platforms to tens of millions of condition sufferers through 200,000+ medical offices and more than 400,000 healthcare professionals. Health Monitor Network was founded in 1983 and is based in Montvale, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-07-15 Invincible Boat

Opa Locka, Florida, United States

Invincible Boat is a premium manufacturer of high-performance saltwater fishing boats. The company offers a portfolio of semi-custom monohull and catamaran models ranging from 33’ to 42’, designed for superior quality, ride, and tournament-level fishability. Invincible Boat was founded in 2006 and is based in Opa Locka, Florida.

Buy -