M&A Deal Summary

Warburg Pincus Acquires PayScale

On April 24, 2014, private equity firm Warburg Pincus acquired software company PayScale from Montlake Capital

Acquisition Highlights
  • This is Warburg Pincus’ 13th transaction in the Software sector.
  • This is Warburg Pincus’ 134th transaction in the United States.
  • This is Warburg Pincus’ 4th transaction in Washington.
Investment Fate
  • PayScale was sold to a consortium of financial buyers in 2019 for 325M USD.

M&A Deal Summary

Date 2014-04-24
Target PayScale
Sector Software
Buyer(s) Warburg Pincus
Sellers(s) Montlake Capital
Deal Type Recapitalization
Advisor(s) Raymond James - Investment Banking (Financial)

Target

PayScale

Seattle, Washington, United States
PayScale offers modern compensation software and the most precise, real-time, data-driven insights for employees and employers alike. PayScale was founded in 2002 and is based in Seattle, Washington.

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Buyer(S) 1

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 253 of 492
Sector: Software M&A 13 of 35
Type: Recapitalization M&A Deals 4 of 7
State: Washington M&A 4 of 5
Country: United States M&A 134 of 241
Year: 2014 M&A 13 of 25
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-18 Sterling Financial

Lancaster, Pennsylvania, United States

Sterling Financial Corp. a bank holding company for Sterling Savings Bank, a state-chartered and federally insured commercial bank. Sterling offers banking products and services, mortgage lending, construction financing and investment products to individuals, small businesses, commercial organizations and corporations. Sterling operates 178 deposit-taking branches in Washington, Oregon, Idaho, Montana and California.

Sell $2.0B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-28 Alignment Healthcare

Orange, California, United States

Alignment Healthcare provides healthcare management services to providers, health plans, and hospitals. The company offers an end-to-end continuous care program, including clinical care coordination, risk management capabilities, and IT enablement. Alignment Healthcare was incorporated in 2013 and is headquartered in Orange, California.

Buy -

Seller(S) 1

SELLER

Montlake Capital

Seattle, Washington, United States

Investor Investor Investor


Category Private Equity Firm
Founded 1999
Size Small
Type Sector Agnostic
DESCRIPTION

Montlake Capital is a private equity firm focused on lower middle-market company investments in the Pacific Northwest US. The Firm looks to invest in businesses generating $20 to $100 million in sales and $1 to $10 million of EBITDA. Sectors of interest include business services, consumer products and services, heath and wellness, retail, technology products, and financial services. Prospective transaction situations include growth capital financings, buyouts, recapitalizations, search funds, and shareholder liquidity needs. Montlake Capital was formed in 1999 and is based in Seattle, Washington.


DEAL STATS #
Overall 6 of 17
Sector: Software M&A 1 of 1
Type: Recapitalization M&A Deals 1 of 1
State: Washington M&A 4 of 10
Country: United States M&A 6 of 17
Year: 2014 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-07-31 Max-Viz

Portland, Oregon, United States

Max-Viz develops enhanced vision systems (EVS) to improve aircraft safety and operational efficiency. The company?s EVS system uses infrared sensor technology to provide pilots with significantly improved visibility for takeoff, landing and ground operations during inclement weather or at night.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-23 Specified Fittings

Bellingham, Washington, United States

Specified Fittings LLC is a manufacturer and distributor of polyvinyl chloride (PVC) and high-density polyethylene (HDPE) pipe fittings. Specified Fittings was founded in 1997 and is based in Bellingham, Washington.

Buy -