GTCR was active throughout 2012 and 2013, completing more than 90 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 $10 billion in more than 200 companies. In 2014, we closed GTCR Fund XI, the firm’s largest fund to date, with $3.85 billion of limited partner equity capital commitments.
Since our last Leadership Report in September 2012, the GTCR Information Services & Technology (“IS&T”) team has made two new platform investments: NewWave Communications and Avention.* We have also completed 11 add-on acquisitions at six portfolio companies and have been active in the capital markets. In total, we have invested more than $150 million of GTCR capital in the IS&T sector since September 2012.
In addition, the GTCR IS&T team recently exited its investments in Six3 Systems and Landmark Aviation and sold a portion of its Merlin Media assets.
*Formerly known as OneSource.
**Please see the Appendix for a complete list of all of our investments in the IS&T sector since 2005.
***GTCR completed the sale of Six3 Systems to CACI International Inc in November 2013.
In November 2013, GTCR completed the sale of Six3 Systems (“Six3″) to CACI International Inc (“CACI”) for $820 million, achieving an exit for its management partnership formed in 2009. Six3 exemplified GTCR Leaders Strategy™ through its partnership with CEO Bob Coleman, former President and COO of ManTech International, and CFO Jack Pearlstein, former CFO of GTCR portfolio companies Solera Holdings, DigitalNet Holdings and AppNet.
Execution of Targeted Thesis Helped Drive Organic Growth
GTCR’s partnership with Six3 aimed to build a high-end national security and defense intelligence provider focused on acquiring specialized capabilities that catered to the intelligence community, Department of Defense and civilian security agencies. In developing the investment thesis, GTCR was able to leverage its domain expertise in government IT established over the past 15 years, including through its previous investment in DigitalNet.
Through a series of four acquisitions, Six3 built a strategically significant asset in the areas of intelligence surveillance and reconnaissance, intelligence operations and cyber security. During GTCR’s ownership, revenue and EBITDA experienced organic compounded annual growth of 22% and 23%, respectively, pro forma for the impact of acquisitions.
Specialized Providers Combined Into Differentiated and Strategically Valuable Provider
GTCR and the management team established a platform to target the unmet need for highly technical processing and analytical solutions for the intelligence community. Six3’s first acquisition was Harding Security Associates in a transaction sourced through Mr. Coleman’s existing relationship with Harding’s primary shareholder, Major General Robert Harding. Six3 then acquired BIT Systems, supplementing Harding’s intelligence operations capabilities with advanced signals intelligence solutions.
The combination of these two businesses established Six3’s core capability set, which was then augmented with the tuck-in acquisitions of Novii Design, a big data analytics and cyber security company, and Ticom Geomatics, a specialized provider of geolocation and signals intelligence solutions. Six3 was able to integrate these businesses and cross-sell their differentiated capabilities into the broader Six3 customer base. In addition, the combination of capabilities facilitated the pursuit of new and larger contract opportunities than those the businesses were able to compete for independently.
CACI’s acquisition of Six3 was the largest of the company’s 55 past acquisitions and illustrated the strategic value and highly specialized capabilities built by Mr. Coleman and his team. We believe CACI will be an excellent partner to Six3, where the employees and technology can continue to grow and serve the vital mission of national security. We look forward to CACI’s and Six3’s continued success.
The specific portfolio company identified is not representative of all portfolio companies. See the Appendix for a complete list of all investments in the Information Services & Technology sector since 2005. Past performance is not a guarantee of future results and there can be no assurance that any GTCR portfolio company will achieve comparable results or be able to implement a desired strategy or objective. This information may not be used or relied upon for any investment purpose whatsoever and is not for existing or potential investors in any fund sponsored by GTCR or its affiliates. This information is for illustrative purposes only, and may not be relied on in any manner as legal, tax or investment advice. GTCR expressly disclaims any obligation or undertaking to update or revise any information contained herein. For avoidance of doubt, this information is not an offer to sell or a solicitation of an offer to buy an interest in any fund sponsored by GTCR or any other entity. A private offering of interests in a fund would only be made pursuant to the applicable fund’s offering documents.
Larry Fey was promoted to Principal in September 2012. Larry joined GTCR in 2005 and is currently a Director of Zayo Group, CAMP Systems, Global Traffic Network and Mondee. Larry was heavily involved in past GTCR investments Six3 Systems, Landmark Aviation, Cellnet and Solera.
King Leung joined GTCR as an Associate in July 2013. Previously, he worked as an Investment Banking Analyst at J.P. Morgan. King graduated from the University of Chicago in 2011 with a Bachelor of Arts in economics.
Rich Roggeveen joined GTCR as an Associate in July 2013. Prior to that, he worked as an Investment Banking Analyst in mergers & acquisitions at Lazard, Fréres & Co. Rich graduated from the University of Notre Dame in 2011 with a Bachelor of Business Administration in finance.
Avention | CAMP Systems | Classic Media | Global Traffic Network | IQNavigator | Land Lease Group | Landmark Aviation | Merlin Media | Mondee | ReSurge | Rural Broadband Investments | Six3 Systems | Solera | Sorenson Communications | SystemsNet | Zayo Group