Fall 2012

GTCR | Information Services & Technology Leadership Report Fall 2012
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Team Update   |   Acquisition Activity   |   Capital Activity   |   Spotlight Chart   |   Team Member Updates   |   Team Contacts   |   Investment History

Information Services & Technology Team Update

GTCR has been very active in 2012, completing more than 20 acquisitions across the Information Services & Technology, Financial Services & Technology and Healthcare industries. From our inception in 1980, GTCR has partnered with management teams to build and transform growth businesses, having invested more than $9 billion in more than 200 companies. In 2011, we closed our 10th investment fund, the firm’s largest to date, with $3.25 billion of equity capital commitments.

Since our founding, we have made more than 40 platform investments in the Information Services & Technology sector. In 2012, the GTCR IS&T team has made three new platform investments: Land Lease Group, CAMP Systems and Zayo. We have also completed nine add-on acquisitions at five portfolio companies since the beginning of the year. In total, we have invested more than $600 million of GTCR capital in the IS&T sector in 2012 to date.

We have developed deep domain expertise and investment experience within five core sub-sectors of the IS&T industry: software & online services, telecom & networks, data & information services, government services/aerospace & defense and media.

Core Verticals

Consistent with our “Leaders Strategy,” we seek to recruit and partner with exceptional management teams. This is our critical first step in identifying, acquiring and building market-leading companies through acquisitions and organic growth. We continue to actively seek investments across our core sub-verticals, both as add-on acquisitions for our existing portfolio companies and as stand-alone platform investments.

*Please see below for a complete list of all of our investments in the Information Services & Technology sector since 1997.

2012 Acquisition Activity

Zayo Group
Zayo Group

  • Partnered with CEO Dan Caruso and other senior executives to make an investment in Zayo Group to finance the acquisition of AboveNet in July 2012
  • Zayo and AboveNet are leading providers of fiber-based bandwidth infrastructure services with a combined network that has more than 4.6 million fiber miles, more than 61,000 route miles and approximately 9,000 on-net buildings
  • The Zayo and AboveNet business models are closely aligned in providing high bandwidth communications services to enterprise, carrier and government customers
  • Also announced acquisition of FiberGate in June 2012, a DC-based provider of dark fiber solutions

CAMP Systems
CAMP Systems

  • Partnered with CEO Ken Gray, COO Vibby Gottemukkala and other senior executives to acquire CAMP Systems in May 2012
  • CAMP is a leading global provider of SaaS-based aircraft maintenance tracking workflow software and information services to the business aviation market
  • The company helps aircraft operators and owners improve aircraft safety, ensure regulatory compliance and enhance aircraft value at resale
  • Also acquired Avtrak, one of CAMP’s largest competitors, in July to provide the company with a well-established brand name, additional customers and accretive earnings

Land Lease Group
Land Lease Group

  • Partnered with Jarred Saba and Andrew Corkern to form Land Lease Group in March 2012
  • Land Lease Group, a real estate investment trust, acquires interests in land leases associated with wireless tower sites in order to aggregate attractive lease streams from these assets
  • CEO Saba and Managing Director Corkern, founders of Land Lease Group, are alumni of industry pioneer Wireless Capital Partners and have extensive experience managing the origination and underwriting of these assets

Mondee
Mondee

  • Mondee is a technology-enabled travel distribution business focused on the private-fare consolidator channel
  • Acquired consolidator SkyLink Travel and two technology businesses, cFares and ExploreTrip, in September 2011
  • Also acquired consolidators C&H International in January 2012 and Transam Travel in June 2012; the combined business now represents the largest airline consolidator in North America with approximately $1.2 billion in bookings per year
  • Currently introducing back-end processing and front-end portal technology

Six3 Systems
Six3 Systems

  • Acquired Ticom Geomatics in April 2012, which adds highly complementary precision geolocation and COMINT capabilities to Six3′s existing offerings

Merlin Media
Merlin Media

  • Completed acquisition of WKDN-FM in Philadelphia from Family Radio in February 2012

Landmark Aviation
Landmark Aviation

  • In February 2012, extended its lease by 37 years at San Diego, a key sole-provider site, following an RFP competition

2012 Capital Markets Activity

CAMP Systems
CAMP Systems Acquisition and Incremental Facility

  • GTCR completed a $230 million first lien debt facility and $115 million second lien debt facility to finance the acquisition of CAMP Systems
  • Covenant-lite senior secured loan package was syndicated by Deustche Bank, along with Credit Suisse, RBC Capital Markets and UBS
  • Utilized the accordion on its first lien facility in July to raise $25 million of additional debt to help finance the acquisition of Avtrak

Zayo Group
Zayo Group Acquisition Financing

  • Zayo/AboveNet transaction financed by $1.62 billion of senior secured term loans, $750 million of senior secured notes and $500 million of unsecured notes
  • $3.12 billion debt financing syndicated by Morgan Stanley, along with Barclays, UBS, SunTrust, Goldman Sachs and RBC Capital Markets

Six3 Systems
Six3 Systems Facility Utilization

  • Utilized revolver capacity to help finance the acquisition of Ticom Geomatics in April 2012
  • Debt held by Bank of America, SunTrust, Citizens, Raymond James, KeyBank and Barclays

Spotlight on Global Internet Traffic

Global internet traffic is forecasted to nearly quadruple from 2011 to 2016. Which companies and industries are best positioned to capitalize on this trend?

Global Internet Traffic Graph

Team Member Updates

Stephen Master has just returned to the firm as a Vice President after completing his MBA at the University of Chicago Booth School of Business. Prior to attending business school, Stephen worked at the firm as an Associate for more than three years.

Alex Feld joined GTCR as an Associate in July 2012. Previously, he worked as an Investment Banking Analyst at Barclays Capital. Alex graduated from the University of Michigan with a BBA with High Distinction in Finance.

Andrew O’Dekirk joined GTCR as an Associate in July 2012. Prior to that, he worked as an Investment Banking Analyst in the Global Industrials Group at Citigroup. Andrew graduated from the University of Michigan with a BBA with High Distinction in Finance & Accounting.

Associates Jason Genrich, David Vennettilli and Michael Yu will each be staying for a third year.

GTCR IS&T Team Contacts

Mark Anderson
Principal

(312) 382-2239
Craig Bondy
Principal

(312) 382-2224
Phil Canfield
Principal

(312) 382-2234
Larry Fey
Vice President

(312) 382-2292
Stephen Jeschke
Vice President

(312) 382-2164
Stephen Master
Vice President

(312) 382-2173

Sector Investments Since 1997

AETEA Information Technology   |   Answerthink   |   AppNet   |   Brience   |   CAMP Systems   |   Cannondale Investments   |   Cellnet   |   Comsys Technical Services   |   DigitalNet   |   Fiderus   |   FutureNext Consulting   |   Global Imaging Systems   |   Global Traffic Network   |   InfoHighway   |   International Computer Graphics   |   IQNavigator   |   ITI Marketing Services   |   Landmark Aviation   |   Merlin Media   |   Mondee   |   National Computer Print   |   NaviSite   |   Six3 Systems   |   Solera   |   Sorenson Communications   |   SystemsNet   |   Land Lease Group   |   TNS   |   Vanteon   |   Vigic   |   Vista Information Technologies   |   Zayo Group   |   Zefer   |   Zenlogics