Buyout Acquisitions in 2012

Thornton Tomasetti, the international engineering firm, has acquired Simon & Associates, Inc. (S&A), a San Francisco–based sustainability and green-building consulting firm. The S&A team will join Thornton Tomasetti's Building Sustainability practice to expand the firm's West Coast presence and add LEED-ND and other sustainability capabilities.

Heartland Payment Systems has acquired ECSI, a Pittsburgh-based provider of payments processing and student loan services for higher education, adding more than 1,800 college and university relationships and retaining ECSI’s ~150+ employees. The acquisition expands Heartland’s Campus Solutions division by integrating ECSI’s payment, loan processing, refund, and campus card services into Heartland’s suite of campus offerings to drive capability and client-base growth in the higher education market.

Garney Holding Company, owner of Garney Construction Company, acquired Encore Construction Company, a Winter Garden, Florida-based environmental contractor specializing in water and wastewater treatment facilities and pump stations. The deal expands Garney's treatment-plant construction capabilities and presence in Florida and the broader Southeastern United States while enabling founder Patrick T. Rainey to divest ahead of retirement.

SAS has acquired code and hired select employees from rPath to strengthen its ability to automate deployment and management of SAS solutions across virtual, private and public cloud environments. The deal adds rPath technology and personnel to SAS Research and Development to accelerate cloud, on-demand and virtualization capabilities for SAS products.

MyHeritage acquired long-time rival Geni.com and closed a $25 million funding round led by Bessemer Venture Partners (with Index Ventures and Accel Partners participating). The deal expands MyHeritage’s global user base and capabilities — Geni will continue as a separate brand based in California and its staff will join MyHeritage to accelerate international expansion and product integration.

K1 Speed Inc., the largest national operator of indoor kart racing facilities, announced it will acquire Race Place Motorsports, Inc. (RPM Indoor Kart Racing) in Sacramento, California. The transaction adds K1 Speed’s 13th nationwide location (and its 3rd in Northern California); the Sacramento facility will convert from gas karts to electric karts and is scheduled to close on December 1, 2012.

Infosys has completed the acquisition of Lodestone Holding AG, a Zurich-based management consultancy, adding more than 750 consultants and roughly 200 clients. The deal strengthens Infosys's management consulting and SAP-enabled transformation capabilities and expands its presence in continental Europe, particularly in industries such as manufacturing, automotive and life sciences.

Navigant Consulting, Inc. has acquired Easton Associates, LLC, a New York–based life sciences strategy and advisory firm. 7 Mile Advisors served as exclusive sell-side advisor to Easton, with Equiteq providing strategic preparation; financial terms were not disclosed.

Stratus Technologies (through its Bermuda holding and U.S. subsidiary) acquired the assets and intellectual property of Marathon Technologies, including the Marathon everRun product line. The deal expands Stratus's software-based application-availability and fault-tolerance capabilities, broadens its partner ecosystem (including Citrix), and transfers Marathon employees in the U.S., U.K. and Japan to Stratus employment.

Singapore Telecommunications Limited (Singtel) has acquired Pixable Inc., a social photo aggregation and intelligence startup, for US$26.5 million. Singtel said it will integrate Pixable’s predictive analytics and machine-learning photo-sorting technology into its digital offerings to provide enhanced photo services to its mobile customers across Asia and Africa.

Wixom, Michigan-based DANTOM Systems has merged with Ohio-based Data Image and its affiliate Data Online, with Data Image operating as an independent subsidiary. The combination expands DANTOM's document, statement and payment-processing capabilities for healthcare and collection clients; Chuck Brown will lead Data Image as President and CEO.

KEYW Corporation announced it will acquire Sensage, Inc., a Redwood City-based provider of SIEM and event data warehousing software, to expand KEYW's commercial market opportunity and support its Project G Cyber Awareness and Response Platform. The transaction consideration is up to $34.5 million (cash and KEYW stock) and is expected to close in October 2012, subject to Sensage equity holder approval and customary closing conditions.

Tech Data Corp will acquire several distribution companies from UK-based Specialist Computer Holdings for about $350 million, adding scale to its European business. The acquired distribution firms — based in the United Kingdom, France and the Netherlands — generated approximately $1.75 billion of third-party sales and will strengthen Tech Data's Azlan enterprise business and vendor/customer portfolio in Europe.

Rakuten LinkShare has entered into a definitive agreement to acquire mediaFORGE, a Salt Lake City–based dynamic display advertising and retargeting platform. The acquisition expands Rakuten LinkShare’s marketing services beyond affiliate marketing into display and retargeting capabilities; terms were not disclosed and mediaFORGE’s ~50 employees will remain in Salt Lake City.

QPS, LLC acquired a majority interest in JSW Life Sciences GmbH and will operate the business as QPS JSW. The deal expands QPS's preclinical capabilities (including CNS/transgenic models) and Phase II–IV clinical operations while strengthening its presence in Central and Eastern Europe.

Synalloy Corporation (SYNL) completed the acquisition of Lee-Var, Inc., dba Palmer of Texas, a manufacturer of fiberglass (FRP) and steel storage tanks serving the oil industry. The purchase, closed August 21, 2012, was financed via an increased bank credit facility and a $22.5 million ten-year term loan; Palmer operates a primary facility in Andrews, Texas, had 137 employees and generated approximately $32 million in trailing twelve-month revenue.

General Dynamics has executed a definitive agreement to acquire Fidelis Security Systems to enhance its cyber security solutions and incident response capabilities. The cash value was not disclosed; Fidelis employs approximately 70 people at locations in Waltham, Massachusetts and Bethesda, Maryland and will become part of General Dynamics Advanced Information Systems.

Water Works Manufacturing, LLC of Cambridge, Minnesota has purchased Interlaken Technology of Chaska, Minnesota. Interlaken will become a division of Water Works Manufacturing and remain in Chaska; Interlaken manufactures production press equipment (hydroforming, hot stamping), precision and material testing systems, while Water Works expands its contract manufacturing and metal fabrication capabilities.

Wencor Group has acquired Soundair Aviation Services, a Snohomish, Washington-based repair station and PMA manufacturer serving the global commercial airline industry. Terms were not disclosed; Alderman & Company Capital served as exclusive financial advisor to Soundair on the sale.

Newgistics, a U.S.-based provider of parcel delivery, returns management and freight services, has acquired AtLast Fulfillment, a Colorado-based fulfillment and warehousing provider. The acquisition expands Newgistics' end-to-end e-commerce capabilities by adding turnkey fulfillment and warehousing solutions to its delivery and returns offering; AtLast's CEO Ted Tanner will join Newgistics as vice president of e-commerce business development.

UL Environment, a business unit of Underwriters Laboratories, acquired GoodGuide, a San Francisco–based provider of environmental, health, and social impact product data and mobile/web transparency tools. The acquisition brings GoodGuide's database and consumer-facing software (covering ~175,000 products and 5,000 companies) into UL Environment's sustainability, certification, and consulting services to expand digital capabilities for product transparency.

CI Capital Partners has acquired Material Handling Services, LLC (d/b/a Total Fleet Solutions), a Holland, Ohio-based provider of outsourced fleet management, maintenance and procurement services for material handling equipment, from Southfield Capital Advisors. Total Fleet Solutions, founded in 2001, focuses on recurring fleet-management contracts for large manufacturing and distribution customers; Southfield had owned a majority stake since 2005.

Denver-based Kodiak Building Partners has acquired substantially all the assets of Gulf & Basco, Inc., a specialty distributor of building products based in Houston, Texas. Kodiak said it plans to grow the Houston business and expand its presence in the Texas market using the base established by Gulf & Basco's management team.

IHS Inc. acquired Invention Machine for approximately $40 million. The Boston-based provider of the Goldfire semantic search and decision-engine software will be integrated into IHS’s Product Design business to enhance knowledge management and accelerate engineering and product innovation.

Perficient, Inc. acquired Nascent Systems LP, an Oracle E-Business Suite-focused consulting firm, in a transaction valued at approximately $18.1 million (including cash and Perficient stock). The deal adds roughly $17 million in annual services revenue and more than 70 consulting and support professionals, expanding Perficient's Oracle ERP capabilities and footprint in the Texas/Oklahoma/Louisiana/Arkansas (TOLA) markets.

The Rubicon Project has acquired Mobsmith, a mobile advertising and ad‑serving platform, to expand its real‑time trading marketplace into mobile. The acquisition strengthens Rubicon’s mobile capabilities and gives it a San Francisco presence while integrating Mobsmith’s technology and engineering team into Rubicon’s REVV platform.

Walgreen Co. agreed to acquire Jim Myers Drug Inc., a family-owned pharmacy chain with five stores in Tuscaloosa, Alabama. The deal — expected to close in June — will preserve local services such as home delivery and offers positions to the chain's roughly 75 employees.

Sunland Field Services, Inc. has acquired the business of Black Horse Construction, Inc., expanding Sunland's tank battery, pump unit, roustabout and related oilfield construction services into the Bakken Shale region of North Dakota and Montana. Black Horse, headquartered in Stanley, North Dakota, employs approximately 280 people and will operate as Sunland Field Services – Bakken Operations with most key employees remaining.

RLJ Equity Partners acquired LAI International, Inc. from Spell Capital Partners in a transaction announced in early 2012; Monroe Capital provided approximately $37.1 million of financing to support the deal. LAI is a contract manufacturer of precision-engineered components serving aerospace, defense, power generation and medical markets; under Spell's ownership the business grew from $16 million to $44 million in sales.

Trustwave has signed a definitive agreement to acquire M86 Security, a provider of web and email security products and advanced anti-malware technology. The acquisition strengthens Trustwave's cloud-based managed security services and expands its threat intelligence, product portfolio and international reach; financial terms were not disclosed.

Inuvo, Inc. completed a stock-for-stock merger with Vertro, Inc. effective March 1, 2012, making Vertro a wholly owned subsidiary of Inuvo. The deal combines Vertro's ALOT product portfolio and online advertising/search capabilities with Inuvo's marketing technology and publisher network to expand product offerings and realize cost synergies.

LenderLive Network Inc.'s Settlement Services division acquired MoKan Title Services to expand its title and settlement capabilities, particularly in the default servicing space. Terms were not disclosed; MoKan provides residential and commercial title insurance and settlement services for lenders in the Missouri/Kansas region.

SAS, the leader in business analytics and integrated marketing management, has acquired aiMatch, a cloud-based ad server technology company. The acquisition integrates aiMatch's ad-serving and yield-management capabilities into SAS' Customer Intelligence suite to provide publishers and advertisers with end-to-end ad inventory management, forecasting, optimization and measurement.

Parago, a Lewisville, Texas-based provider of consumer and corporate incentives, has acquired Intuitive Group International, a Reading, UK-based provider of global channel management, marketing automation and rewards platforms. The deal expands Parago's international footprint and adds multi-channel channel/employee engagement and marketing automation capabilities for global clients.

Pro Mach, Inc. has acquired Edson Packaging Machinery, Ltd., a Hamilton, Ontario-based manufacturer of high-performance case and tray packing equipment. Edson will join Pro Mach's End of Line Business Unit to expand Pro Mach's end-of-line capabilities and case-packing footprint while continuing production in Ontario.

Kenexa entered into a definitive merger agreement to acquire OutStart, a privately held Boston-based provider of SaaS e-learning solutions, to expand Kenexa's talent management suite with learning management, mobile and social learning capabilities. The transaction is expected to close subject to customary conditions and stockholder consent and will be funded from Kenexa's existing cash balance.

Twitter acquired Dasient, a Sunnyvale-based anti-malware startup, to strengthen the security of its advertising platform and prevent 'malvertising.' The Dasient team will join Twitter's revenue engineering efforts and Dasient will discontinue its standalone services as it integrates into Twitter.

Constant Contact, Inc. acquired Boston-based CardStar, Inc., a mobile loyalty platform with over two million users, to expand its mobile, loyalty, and consumer capabilities for small-business marketing. CardStar's employees, including founders Andy Miller and Danny Espinoza, joined Constant Contact; financial terms were not disclosed.

SXC Health Solutions Corp. completed the acquisition of HealthTrans LLC, a middle-market pharmacy benefit management (PBM) and healthcare IT services provider, for $250 million in cash effective January 1, 2012. The purchase was funded from SXC’s cash balance and $100 million of borrowings under its revolving credit facility; HealthTrans’ operations will remain in Denver, Colorado.

Sensiba San Filippo LLP announced a merger with W.H. Mayer Accountancy Corporation, combining the firms under the Sensiba San Filippo name effective January 3, 2012. The move expands Sensiba San Filippo's presence in the Tri-Valley area, adds W.H. Mayer's experienced team and clients, and is part of a broader strategy to accelerate staffing and revenue growth.

PennWell Corporation, a privately held B2B media company based in Tulsa, Oklahoma, acquired the Broadband Technology Report (BTR) and related assets from Virginia-based Hermes Media & Research LLC. The acquisition brings BTR's editorial team and the Diamond Technology Reviews awards program into PennWell's Technology Group to expand its presence in the broadband and telecommunications vertical.

HID Global has acquired EasyLobby, a provider of visitor management systems and software, to extend HID’s identity and access management offerings. EasyLobby will operate independently within HID Global’s Identity and Access Management business and its visitor-management capabilities will be integrated with HID’s physical access control, secure issuance and managed services solutions.

Noverra Group of Companies acquired Brighter Mechanical in the summer of 2012 from owners Bob Vincent and Ted McDowell. The deal provided an owner transition and succession solution while adding a leading British Columbia re-piping and mechanical contracting business to Noverra's industrial services platform.