Acquisitions in California in 2018

Planview, the Austin-based work and resource management software provider, acquired Spigit, a San Francisco–based leader in crowdsourced innovation management software. The acquisition adds Spigit's innovation-management and machine-learning idea-analytics capabilities to Planview's WRM portfolio, enhancing its product and portfolio management offerings for enterprise customers.

Class Valuation, a nationwide appraisal management company based in Troy, Michigan, has acquired Van Nuys, California–based Landmark Network, a specialist in real estate valuation for the reverse mortgage lending industry. The acquisition expands Class Valuation’s reverse-mortgage capabilities and geographic footprint while integrating Landmark’s client relationships and valuation technology into Class’s national platform.

RealPage agreed to acquire Rentlytics for an initial cash purchase price of approximately $57 million. The acquisition expands RealPage’s multifamily data footprint by nearly 900,000 units and adds Rentlytics’ real-time business intelligence and performance analytics capabilities to RealPage’s platform.

Emart, South Korea's largest retailer, has acquired Good Food Holdings, the California-based owner of upscale grocery chains Bristol Farms, Lazy Acres Market, and Metropolitan Market, for $275 million. The purchase gives Emart a foothold in the U.S. grocery market while Good Food Holdings' operations and management are expected to remain unchanged in the near term.

Arthur J. Gallagher & Co. acquired Long Beach, California-based R.T. Beers & Company Insurance Services, Inc. The acquisition expands Gallagher’s retail property/casualty brokerage capabilities and presence in Southern California; the R.T. Beers leadership team will continue to operate from their current location under Gallagher’s Southwest region.

Funds managed by WindRose Health Investors completed a recapitalization of Traditions Behavioral Health (TBH), a West Coast provider of permanent outsourced physician psychiatric services. WindRose partnered with TBH's executive team (founder and CEO Gary A. Hayes remains in place) to provide growth capital to expand into new U.S. markets, broaden services and increase its network of psychiatrists.

HighBar Partners has acquired SS8 Networks, a provider of lawful intercept, network intelligence and breach-detection solutions, to fund the company’s next phase of growth. The investment is intended to accelerate SS8’s product innovation and expand its reach with communications service providers, law enforcement agencies and enterprise customers as network technologies transition to 5G and beyond.

ISSQUARED, Inc. has acquired Starnet Data Design, a Westlake Village, California-based value-added reseller and network engineering services provider. The acquisition expands ISSQUARED’s cloud infrastructure, managed services and security capabilities and brings hundreds of Starnet clients into ISSQUARED’s service footprint.

Arthur J. Gallagher & Co. acquired El Centro, California–based Tyler Insurance Agency; terms were not disclosed. Tyler Insurance Agency, founded in 1921, provides property/casualty insurance and risk management across southern and central California with strengths in agribusiness, public entities, utilities, schools and construction; the Tyler principals and staff will continue to operate under Gallagher's Southwest region leadership.

Hub International Limited acquired the assets of Liberty New Gate Insurance Services, LLC, a Watsonville, California-based insurance agency specializing in agribusiness and horticulture risk solutions. The transaction strengthens Hub's specialty practices in agriculture and expands its California footprint; Matt Muirhead, President of Liberty New Gate, will join Hub California.

Solutionz, Inc., a Fernandez Holdings portfolio company, has acquired Santa Maria-based AV integrator and communications systems manufacturer Quintron Systems, Inc. The deal adds Quintron's manufacturing division, government contracts, new office locations and technical talent to expand Solutionz's federal and audiovisual capabilities.

ZephyrTel, an ESW Capital software company focused on telecommunications solutions, has acquired Vasona Networks, a provider of mobile edge and network performance software for mobile operators. The deal strengthens ZephyrTel’s telco software portfolio and capabilities in mobile edge computing as part of its rapid build-out of a global telecommunications software group.

Blackford Capital, a private equity firm based in Grand Rapids, acquired Hall Research Technologies, a Tustin, California designer and manufacturer of professional A/V hardware and software. Dinan Capital Advisors served as exclusive financial advisor to Hall Research and its shareholders in the majority-control transaction as Blackford looks to expand its lower middle‑market manufacturing portfolio in the Pro AV space.

Arthur J. Gallagher & Co. acquired Windsor, California-based Rogers & Young Insurance Services, LLC, a diversified commercial and personal lines insurance agency focused on contractors and construction clients. The founders and their team will continue to operate from their current location under Gallagher's regional leadership; terms were not disclosed.

Thoma Bravo signed a definitive agreement to acquire a majority interest in Apttus, a San Mateo–based provider of Quote-to-Cash, Contract Lifecycle Management and Middle Office software. The deal (expected to close in early October 2018) will pair Apttus’ enterprise revenue-management platform with Thoma Bravo’s software operating experience to accelerate growth and scale; financial and legal advisors and financing partners were disclosed but financial terms were not.

RealPage will acquire substantially all of the assets of LeaseLabs for an initial purchase price of approximately $103 million in cash and stock plus an earn‑out of up to $14 million, subject to customary adjustments. The acquisition brings LeaseLabs’ cloud-based digital marketing and lead‑generation capabilities into RealPage’s marketing platform (to be branded the Go Direct Marketing Suite) to expand marketing analytics, content, reputation management and direct lead channels for multifamily operators.

Implus, the Durham-based athletic and outdoor accessories company (majority owned by Berkshire Partners), acquired substantially all assets of Pro Performance Sports LLC, which does business as SKLZ. The acquisition adds the SKLZ sporting-goods brand and product portfolio to Implus' fitness division and aims to expand Implus' presence and channels in the sporting goods category.

Encore Textile Services, a portfolio company of Pacific Avenue Capital Partners, has acquired San Diego-based Emerald Textiles, combining two of the largest independent healthcare linen service providers in California. The transaction creates a larger West Coast platform (five locations) to better serve regional hospital and healthcare customers and supports Pacific Avenue's strategy of scaling the Encore platform through add-ons and organic growth.

Global investment firm KKR will acquire The Bay Club Company, a San Francisco-based active lifestyle and hospitality operator, from York Capital Management and minority investors. The Bay Club operates seven California campuses with more than 50,000 members and employs over 4,000 people; deal terms were not disclosed.

One Ring Networks completed the acquisition of Skyriver Communications, adding high-speed fixed wireless and fiber internet assets and expanding One Ring’s footprint into multiple California markets. The deal enables One Ring to offer hosted PBX, managed IT services and additional redundancy solutions to businesses across Los Angeles, Orange County, San Francisco, San Diego and Riverside/San Bernardino.

Trinity Consultants has acquired ADVENT Engineering Services, which will operate as a Trinity company led by Albert Dyrness. The acquisition expands Trinity’s life‑sciences consulting capabilities to include process development, process and automation engineering, CQV (commissioning, qualification and validation), and project management for biopharmaceutical and related manufacturers.

Accenture acquired an artificial intelligence technology from Bay Area start-up Real Time Analytics Platform, Inc. to integrate into its Accenture Touchless Testing Platform, enhancing AI-driven testing, analytics and automation capabilities. Terms were not disclosed.

Ribbon Communications has signed an agreement to acquire Edgewater Networks, a provider of Network Edge Orchestration and SD-WAN/edge devices, for an aggregate purchase price of $110 million in cash, deferred payments and stock. The deal expands Ribbon’s core-to-edge portfolio (including SBCs, SD-WAN and analytics), is expected to be immediately accretive, and positions Ribbon as a market leader in enterprise Session Border Controllers and network edge orchestration.

Arthur J. Gallagher & Co. acquired Pasadena, California-based insurance brokerage Binney, Chase & Van Horne, Inc., expanding Gallagher's property/casualty and employee benefits capabilities in Southern California. Terms were not disclosed; the Binney, Chase & Van Horne team (including Bruce Newsom and Robyn Roesner) relocated to Gallagher's Glendale office.

Digital marketing agency Elite SEM has acquired Email Aptitude, an independent CRM and email marketing agency with a team of more than 85 specialists. The deal (Elite SEM's second add-on since partnering with Mountaingate Capital in 2017) expands Elite's capabilities to include CRM, email program management and creative services, creating a broader full-service digital offering.

Arable Capital Partners has acquired Farmington Fresh Cuts and will merge the business into its portfolio company, Fresh Innovations. The deal transfers the family-owned fresh-cut fruit processor (founded by the Rajkovich family) into Arable’s platform to expand Fresh Innovations’ sliced/packaged fruit capacity and distribution to school, retail and foodservice customers across the region.

Milestone Partners led the acquisition of mTAB LLC on May 31, 2018. mTAB, a provider of database services and cloud-based data analytics platforms based in Anaheim, California (with an office in Essex, UK), will partner with Milestone to accelerate growth, expand its product offering and enter new markets; Woodforest National Bank provided a senior credit facility to support the transaction.

Volex PLC acquired MC Electronics LLC from Nova Capital Management, completing a deal announced in April 2018 and reported in June 2018. MC Electronics, based in Hollister, California with manufacturing in Juarez, Mexico, is a contract manufacturer of custom cables, wire harnesses and electromechanical assemblies for the medical equipment industry; Volex said the acquisition expands its cable assembly capabilities and customer relationships.

Think3, a private equity fund focused on SaaS acquisitions, has acquired Bizness Apps, a San Diego–based mobile app builder for small businesses. Bizness Apps will join Think3's portfolio and be integrated into the Think3 Prime program to expand the fund's small-business mobile solutions offering while founder Andrew Gazdecki remains with the company to support the transition.

Utimaco announced it will acquire the Atalla hardware security module (HSM) and Enterprise Secure Key Manager (ESKM) business lines from Micro Focus to strengthen its HSM product portfolio and expand into the payments market. The transaction — announced May 18, 2018 — is subject to customary regulatory approvals and was expected to close in fall 2018; Utimaco said it will retain and invest in the Atalla team at its California location.

Q.E.P. Co., Inc. has acquired Ace Flooring, Inc., doing business as Naturally Aged Flooring, a Moorpark, California–based hardwood flooring manufacturer, importer and distributor. Naturally Aged Flooring serves a national customer base of more than 2,500 mostly independent retailers; the transaction was announced by advisor Woodbridge International on May 9, 2018.

Toronto-based private equity firm Lynx Equity Limited has acquired Livermore, California–based Flooring Solutions, Inc., the largest commercial non-union flooring contractor in the San Francisco Bay Area. Flooring Solutions' co-founder Rick Elfman will remain with the business for more than three years to ensure a smooth transition; the deal expands Lynx's existing flooring portfolio alongside its Portland Floor Solutions and G&W Commercial Interiors holdings.

Los Angeles-based Elite Restaurant Group, led by Mike Nakhleh, is acquiring the Daphne's California Greek brand and has taken over operations of 23 California locations. Elite plans to remodel the restaurants, simplify the name to Daphne's, launch a new menu and retail products, and pursue growth via franchising and adding roughly 10 corporate locations per year.

Blackstone announced it will acquire the Center for Autism and Related Disorders (CARD), a leading provider of applied behavior analysis (ABA) therapy for children and adults with autism. CARD Founder and CEO Dr. Doreen Granpeesheh and management will reinvest alongside Blackstone, which said it will support expansion of clinics, people, technology and research.

Granicus has acquired Accela’s Legislative Management business (formerly IQM2), taking ownership of the unit’s operations, assets and customer contracts. The deal expands Granicus’s end-to-end legislative management and citizen engagement capabilities for local government clients and brings the IQM2 team and roughly 450 customers into Granicus’s public-sector software platform.

Kinderhook Industries announced a growth investment in StudyKIK, partnering with founders Matt Miller and Jerome Chiaro to accelerate the patient-recruitment company's growth. StudyKIK, headquartered in Costa Mesa, California, provides social-media-driven patient recruitment and retention solutions for clinical trials and will work with Kinderhook to scale its technology and market penetration.

Anexinet, a portfolio company of Marlin Equity Partners, has acquired Propelics, a San Jose-based enterprise mobility and mobile application specialist, to deepen Anexinet's mobile strategy and app development capabilities. 7 Mile Advisors served as exclusive sell-side advisor to Propelics in the transaction.

Marlin Equity Partners has completed the acquisition of Inkling Systems, an enterprise SaaS platform for field workforce operations and knowledge delivery. Marlin said it will support Inkling's management team to accelerate growth and expand the company's presence within key verticals such as retail and franchised businesses.

Hub International Limited acquired the assets of Der Manouel Insurance & Financial Services, Inc., a Fresno-based multi-line insurance brokerage with an office in Pleasanton, California. The deal — terms not disclosed — brings DMIG's leadership and staff into Hub California to strengthen Hub's Central Valley footprint and expand its vertical-market capabilities.

BITZER US, Inc., the Flowery Branch, Georgia subsidiary of the BITZER Group, has acquired VaCom Technologies, Inc., a La Verne, California provider of refrigeration controls, custom control panels, and energy-efficiency consulting. Bravaldo Capital Advisors sourced and advised the transaction. The acquisition expands BITZER’s capabilities by integrating equipment and controls, creates a new West Coast sales channel, and enables replication of these capabilities across North America.

Wind Point Partners' portfolio company GF Assets Holdings (parent of Gehl Foods) acquired California Natural Products, a Lathrop, California-based aseptic packager of dairy and dairy-alternative beverages, soups, broths and ingredient products. The deal adds West Coast aseptic filling and ingredient-development capabilities to Gehl's existing aseptic platform and expands its packaging formats and customer relationships.

CenterGate Capital, L.P. made an equity investment in AC Photonics, Inc., a Santa Clara-based manufacturer of precision optical and fiber-optic components and modules. Dinan Capital Advisors served as exclusive financial advisor to AC Photonics and its shareholders in the transaction, which provides capital and strategic support to accelerate the company's growth and operations.

KPMG LLP has acquired the Identity and Access Management (IAM) business of Silicon Valley-based Cyberinc to strengthen its enterprise security and digital identity capabilities. The deal brings Cyberinc's ~190-person IAM team, advisory, implementation and managed services capabilities into KPMG to expand the firm's IAM and privileged user management offerings globally.