M&A Deal Summary

The Carlyle Group, Providence Equity Partners and Vector Capital Acquire Open Solutions

On October 15, 2006, private equity firms The Carlyle Group, Providence Equity Partners and Vector Capital acquired software company Open Solutions for 1.3B USD

Acquisition Highlights
  • This is The Carlyle Group’s 21st, Providence Equity Partners’ 2nd and Vector Capital’s 6th transaction in the Software sector.
  • This is The Carlyle Group’s 51st, Providence Equity Partners’ 17th and Vector Capital’s 4th largest (disclosed) transaction.
  • This is The Carlyle Group’s 152nd, Providence Equity Partners’ 24th and Vector Capital’s 8th transaction in the United States.
  • This is The Carlyle Group’s 4th, Providence Equity Partners’ 2nd and Vector Capital’s 2nd transaction in Connecticut.
Investment Fate
  • Open Solutions was sold to a publicly-traded strategic buyer in 2013 for 1.0B USD.

M&A Deal Summary

Date 2006-10-15
Target Open Solutions
Sector Software
Buyer(s) The Carlyle Group
Providence Equity Partners
Vector Capital
Deal Type Going Private
Deal Value 1.3B USD
Advisor(s) Wells Fargo Securities
Wachovia Securities (Financial)
Simpson Thacher & Bartlett (Legal)

Target

Open Solutions

Glastonbury, Connecticut, United States
Open Solutions LLC is a provider of software and software-enabled outsourcing solutions to banks, thrifts and credit unions.

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Buyer(S) 3

Buyer

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 435.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


DEAL STATS #
Overall 252 of 749
Sector: Software M&A 21 of 57
Type: Going Private M&A Deals 6 of 36
State: Connecticut M&A 4 of 7
Country: United States M&A 152 of 350
Year: 2006 M&A 43 of 51
Size (of disclosed) 51 of 137
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-08 Hyundai Communications & Network

Seoul, South Korea

Hyundai Communications & Network offers digital media construction services that provides contents, including information, entertainment, and advertisements through LEDs installed in public and commercial spaces. Hyundai HCN was founded in 1995 and is based in Seoul, South Korea.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-30 Rhythm NewMedia

Mountain View, California, United States

Rhythm NewMedia, Inc. is a company enabling ad-supported mobile media, end-to-end. Rhythm’s solution is designed to support advertising on mobile video, WAP/HTML, mobile search, and mobile messaging.

Buy -
Buyer

Providence Equity Partners

Providence, Rhode Island, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 36.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Providence Equity Partners is a specialist private equity firm that targets investments in media, entertainment, communications, and information companies. Specifically, Providence seeks investments in wireless and wireline telephony, cable television content and distribution, music, film, publishing, radio and television broadcasting, and other media and communications sectors. Providence Equity looks to commit $150 million to $800 million of equity capital in transactions ranging from growth financings and recapitalizations, to buyouts and take-privates. Providence Equity Partners was formed in 1989 and has offices in Providence, Rhode Island; New York, New York; Los Angeles, California; London, United Kingdom; Hong Kong, China; and New Delhi, India.


DEAL STATS #
Overall 38 of 137
Sector: Software M&A 2 of 16
Type: Going Private M&A Deals 4 of 12
State: Connecticut M&A 2 of 2
Country: United States M&A 24 of 86
Year: 2006 M&A 7 of 7
Size (of disclosed) 17 of 34
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-01 Casema NV

The Hague, Netherlands

Casema NV is a provider of analogue TV, digital TV and broadband Internet access to its residential customers, and leased line data communications and voice telephony to its business customers.

Sell €2.1B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-12-14 ProSiebenSat.1 Media

Unterfohring, Germany

ProSiebenSat.1 Media is a media company that operates 27 TV channels in 10 countries. The entertainment segment operates free TV stations, such as SAT.1, prosieben, kabel eins, sixx, SAT.1 gold, prosieben MAXX, and kabel eins doku, as well as distributes prosiebenSat.1 HD stations. ProSiebenSat.1 Media was founded in 1984 and is based in Unterfohring, Germany.

Sell $3.9B
Buyer

Vector Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 4.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Vector Capital is a private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector targets both public and private company investments. Prospective businesses typically have strong customer bases, high gross margins, and at least $30 million in sales. Vector Capital was formed in 1997, after spinning out from Ziff Brothers Investments. The Firm is based in San Francisco, California.


DEAL STATS #
Overall 9 of 52
Sector: Software M&A 6 of 16
Type: Going Private M&A Deals 4 of 16
State: Connecticut M&A 2 of 3
Country: United States M&A 8 of 43
Year: 2006 M&A 2 of 2
Size (of disclosed) 4 of 18
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-17 WatchGuard

Seattle, Washington, United States

WatchGuard provides network security. The company’s Firebox X family of upgradeable appliances delivers the performance, functionality and security strength to meet the needs of small and medium sized organizations. All WatchGuard products include a LiveSecurity Service subscription for vulnerability alerts, software updates, expert security instruction, as well as individualized and self-help customer care. WatchGuard was founded in 1996 and is based in Seattle, Washington.

Buy $151M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-03-06 SafeNet

Belcamp, Maryland, United States

SafeNet is a digital information security company. SafeNet protect, control the access to, and manage most sensitive data and high value software applications.

Buy $634M