M&A Deal Summary

Warburg Pincus and Goldman Sachs Merchant Banking Acquire Newfold Digital

On November 7, 2011, private equity firms Warburg Pincus and Goldman Sachs Merchant Banking acquired information technology company Newfold Digital from Accel-KKR and Tregaron Capital for 975M USD

Acquisition Highlights
  • This is Warburg Pincus’ 9th and Goldman Sachs Merchant Banking’s 5th transaction in the Information Technology sector.
  • This is Warburg Pincus’ 17th and Goldman Sachs Merchant Banking’s 30th largest (disclosed) transaction.
  • This is Warburg Pincus’ 113th and Goldman Sachs Merchant Banking’s 61st transaction in the United States.
  • This is Warburg Pincus’ 3rd and Goldman Sachs Merchant Banking’s 4th transaction in Florida.
Investment Fate
  • Newfold Digital went public in 2013.
  • Newfold Digital was sold to a financial buyer in 2020 for 3.0B USD.

M&A Deal Summary
Date 2011-11-07
Target Newfold Digital
Sector Information Technology
Buyer(s) Warburg Pincus
Goldman Sachs Merchant Banking
Sellers(s) Accel-KKR
Tregaron Capital
Deal Type Secondary Buyout
Deal Value 975M USD
Advisor(s) Kirkland & Ellis (Legal)

Target

Newfold Digital

Jacksonville, Florida, United States
Newfold Digital is a provider of shared web hosting services to small businesses. Newfield Digital helps customers of all sizes build a digital presence that delivers results. Newfold Digital has extensive product offerings and personalized support with customers to serve their online presence needs. Newfold Digital was founded in 1997 and is based in Jacksonville, Florida.

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Buyer(S) 2

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.

DEAL STATS #
Overall 203 of 482
Sector (Information Technology) 9 of 44
Type (Secondary Buyout) 26 of 64
State (Florida) 3 of 12
Country (United States) 113 of 237
Year (2011) 20 of 21
Size (of disclosed) 17 of 47
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-11-07 MLM Information Services

New York, New York, United States

MLM Information Services, LLC, was formed in 2005 to invest in information service companies with a long-term view to value creation. To date, MLM has acquired two leading vendors of corporate tax compliance software: CORPTAX and Tax Compliance, Inc (?TCI?). CORPTAX provides corporate income tax software and related support and integration services primarily to Fortune 500 companies. TCI develops, markets and supports real and personal property tax compliance software.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-12-01 LaVie Care Centers

Tampa, Florida, United States

LaVie Care Centers provides a comprehensive array of professional management consulting and operational services to skilled nursing facilities throughout the US.

Sell -
Buyer

Goldman Sachs Merchant Banking

New York, New York, United States
Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.

DEAL STATS #
Overall 85 of 183
Sector (Information Technology) 5 of 14
Type (Secondary Buyout) 21 of 67
State (Florida) 4 of 5
Country (United States) 61 of 127
Year (2011) 6 of 6
Size (of disclosed) 30 of 52
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-01 Schneller

Kent, Ohio, United States

Schneller, Inc. designs and manufactures highly engineered laminates, thermoplastics, and non-textile flooring for use primarily on side walls, lavatories, galleys, bulkheads, and cabin floors. These products are found on almost every commercial transport and regional jet platform.

Sell $289M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-18 Legends

New York, New York, United States

Legends provides hospitality, merchandise, ticket sales, planning, sponsorships and experiential services to the sports and entertainment industries, as well as the management of landmark attractions such as Yankee Stadium, AT&T Stadium (home of the Dallas Cowboys) and the observatory at New York City’s World Trade Center. Legends was founded in 2008 and is based in New York.

Sell -

Seller(S) 2

SELLER

Accel-KKR

Menlo Park, California, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 2000
PE ASSETS 19.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Accel-KKR is a private equity firm that seeks control and growth-oriented investments in middle-market technology companies. The Firm targets investments in public and private companies with revenues ranging from $15 to $150 million. Accel-KKR pursues transactions across multiple segments of the technology industry, including software, hardware and internet technologies, and IT enabled services. Accel-KKR's first fund was created in 2000 by Accel Partners and Kohlberg Kravis Roberts & Co. to invest in technology assets and businesses that were outside of each firm's core focus. Accel-KKR is based in Menlo Park, California.

DEAL STATS #
Overall 9 of 54
Sector (Information Technology) 2 of 13
Type (Secondary Buyout) 1 of 16
State (Florida) 1 of 1
Country (United States) 8 of 44
Year (2011) 3 of 3
Size (of disclosed) 4 of 17
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-10-25 YourEncore

Indianapolis, Indiana, United States

YourEncore, Inc. is a provider of drug development and commercialization advisory and consulting services to the biopharmaceutical industry. YourEncore was founded in 2003 and is based in Indianapolis, Indiana.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-02 TrueCommerce

Cranberry Township, Pennsylvania, United States

TrueCommerce is a platform that provides digital connectivity and business system integration between buyers/sellers and their trading partners as well as an assortment of value-added supply chain software applications. TrueCommerce was founded in 1995 and is based in Cranberry Township, Pennsylvania.

Buy -
SELLER

Tregaron Capital

Palo Alto, California, United States

Investor Investor Investor Investor

Category Private Equity Firm
Founded 2001
PE ASSETS 200M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Tregaron Capital Company is a private investment firm focused on investing in small to mid-sized businesses with EBITDA between $1 and $5 million and annual revenues of at least $5 million. Tregaron looks to provide mezzanine and/or equity capital to support recapitalizations, management buy-outs, acquisition financings, go-private transactions, buy-outs of founders or passive owners, and growth capital transactions. Target sectors include business services, IT services, healthcare services, mature software and technology, niche food and consumer packaged goods, and value-added distribution. The Firm's investment size is $3 to $10 million per transaction. Tregaron Capital is based in Palo Alto, California.

DEAL STATS #
Overall 3 of 9
Sector (Information Technology) 1 of 2
Type (Secondary Buyout) 1 of 1
State (Florida) 1 of 1
Country (United States) 3 of 9
Year (2011) 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-07 TreadWright

Houston, Texas, United States

TreadWright is a tire retreading company serving the light truck replacement tire market. TreadWright was founded in 1981 and is based in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-08 GlowTouch Technologies

Louisville, Kentucky, United States

GlowTouch Technologies is a technology services company that enables clients to leverage a broad range of software development expertise and outsourced business support services. GlowTouch provides quality, cost-effective and scalable solutions to meet client's growing software development, technical support and other back-office needs.

Sell -
Mergr

Product

Company

Legal