M&A Deal Summary

The Guardian Life Insurance Company of America Acquires STX Healthcare Management Services

On December 30, 2016, The Guardian Life Insurance Company of America acquired business services company STX Healthcare Management Services from Patriot Capital, Capitala Group and Harbert Private Capital

Acquisition Highlights
  • This is The Guardian Life Insurance Company of America’s 1st transaction in the Business Services sector.
  • This is The Guardian Life Insurance Company of America’s 3rd transaction in the United States.
  • This is The Guardian Life Insurance Company of America’s 1st transaction in Texas.

M&A Deal Summary

Date 2016-12-30
Target STX Healthcare Management Services
Sector Business Services
Buyer(s) The Guardian Life Insurance Company of America
Sellers(s) Patriot Capital
Capitala Group
Harbert Private Capital
Deal Type Add-on Acquisition

Target

STX Healthcare Management Services

Bellaire, Texas, United States
STX Healthcare Management Services, Inc. is a dental practice management services company that provides back-office and management services to dental clinics throughout the Southeast. STX was established in 2009 and is based in Bellaire, Texas.

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Buyer(S) 1

Buyer

The Guardian Life Insurance Company of America

New York, New York, United States

Category Company
Founded 1860
Sector Insurance
DESCRIPTION

The Guardian Life Insurance Co. of America is a provider of mutual life insurance and employee benefits.


DEAL STATS #
Overall 3 of 3
Sector: Business Services M&A 1 of 1
Type: Add-on Acquisition M&A Deals 3 of 3
State: Texas M&A 1 of 1
Country: United States M&A 3 of 3
Year: 2016 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-29 Avēsis

Phoenix, Arizona, United States

Avēsis is a provider of essential ancillary benefit solutions. Avēsis creates communities and systems of care where everyone has access to quality healthcare and services. Avēsis was founded in 1978 and is based in Phoenix, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-05 The Guardian Life Insurance Company of America - Dental Service Organization Operations

New York, New York, United States

The Guardian Life Insurance Company of America - Dental Service Organization Operations includes 36 supported offices in Texas currently branded South Texas Dental, 13 in Northern and Central California under the Access Dental brand, 8 in Northern and Southern California branded Blue Hills Dental, and 6 Vital Smiles offices in Alabama.

Sell -

Seller(S) 3

SELLER

Patriot Capital

Baltimore, Maryland, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Size Large
Type Sector Agnostic
DESCRIPTION

Patriot Capital is a private investment firm that provides equity and junior capital to support acquisitions, growth capital financings, management buyouts, and recapitalizations of middle-market companies. The Firm looks to invest $5 to $25 million in businesses generating revenues of $10 to $200 million. Areas of interest include business and consumer services, consumer products, niche manufacturing and distribution, education, e-commerce, application software, transportation, and telecom services. Patriot focuses its investment activity with the Mid-Atlantic, Midwest, and Southern areas of the US. Patriot Capital is based in Baltimore, Maryland.


DEAL STATS #
Overall 27 of 55
Sector: Business Services M&A 3 of 4
Type: Add-on Acquisition M&A Deals 17 of 32
State: Texas M&A 3 of 5
Country: United States M&A 27 of 55
Year: 2016 M&A 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-30 Dedicated Computing

Waukesha, Wisconsin, United States

Dedicated Computing is a provider of embedded computers (compute engines) as well as integration and product lifecycle management services to original equipment manufacturers (OEMs) and independent software vendors (ISVs). Dedicated Computing was founded in 1978 and is based in Waukesha, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-11 Union Corrugating

Fayetteville, North Carolina, United States

Union Corrugating is a manufacturer of metal roofing systems and roofing components for use in residential, commercial, and post-frame/agricultural applications. Union Corrugating was founded in 1946 and is based in Fayetteville, North Carolina.

Buy -
SELLER

Capitala Group

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1998
PE ASSETS 2.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Capitala Group is an asset manager that provides equity and mezzanine capital to mid-sized companies valued up to $250 million. Funds are generally used to support growth needs, add-on acquisitions, management/leveraged buyouts, and recapitalizations. Capitatala will invest across the US, but generally targets opportunities located in the Southeast. Industry preferences include building products, business services, consumer/reteail, general industrial, healthcare, and technology. Prospective companies typically have revenues greater than $10 million and EBITDA of at least $3 million. Capitala was formed in 1998 and is headquartered in Charlotte, North Carolina.


DEAL STATS #
Overall 28 of 56
Sector: Business Services M&A 1 of 3
Type: Add-on Acquisition M&A Deals 9 of 20
State: Texas M&A 2 of 3
Country: United States M&A 27 of 55
Year: 2016 M&A 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-01 Xirgo

Camarillo, California, United States

Xirgo is a provider of wireless telematics modules for tracking, monitoring, protecting, and controlling remote assets and workers supporting the Internet of Things (“IoT”) growth sector. Xirgo Technologies was founded in 2005 and is based in Camarillo, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-30 Currency Capital

Los Angeles, California, United States

Currency Capital is an equipment financing exchange serving owners of small- and medium-sized companies. Currency Capital’s online portal enables business owners to receive competitively priced loans for equipment purchases.

Buy -
SELLER

Harbert Private Capital

Birmingham, Alabama, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1985
PE ASSETS 4.7B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Harbert Private Equity and Mezzanine is a private equity arm of Harbert Management Corp. The Private Equity group targets leveraged buyouts, recapitalizations, expansion capital investments, and distressed situations. The firm targets opportunities across a range of industries and typical transactions have enterprise values between A$10 and A$100 million. The Mezzanine Capital group seeks subordinated debt investments and can commit $3 to $15 million per transaction. . Harbert Management Corporation was formed in 1985 and has offices in Birmingham, Alabama; New York, New York; Nashville, Tennessee; Richmond, Virginia; London; Madrid; Paris; and Melbourne.


DEAL STATS #
Overall 30 of 44
Sector: Business Services M&A 2 of 4
Type: Add-on Acquisition M&A Deals 18 of 27
State: Texas M&A 4 of 5
Country: United States M&A 29 of 43
Year: 2016 M&A 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-09-30 Mission Critical Electronics

Costa Mesa, California, United States

Mission Critical Electronics is a niche-oriented manufacturer of power conversion, battery charging and battery products operating under the brands Kussmaul Electronics, Newmar Power, ASEA Power Systems, Power Products, and American Battery Charging. The Company focuses on critical system applications in specialty vehicle, public safety, and industrial/marine applications where durability, reliability, and performance are essential to deliver immediately accessible power. MCE’s solutions address application-specific requirements for 4,000 customers across 2,000+ branded SKUs. Mission Critical Electronics is based in Costa Mesa, California.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-02-01 Global Connection

Atlanta, Georgia, United States

Global Connection Inc. of America is a direct marketing company selling prepaid wireline phone and other services to low-income consumers with poor credit. Global Connection was founded in 1998 and is based in Atlanta, Georgia.

Sell -