Carlyle Continues Deal Spree with Purchase of Cloud Services Provider WingArc1st

The PE firm recently invested in Coalfire Systems and JenCap

The Carlyle Group (Nasdaq: CG) is buying Japanese business software developer WingArc1st from its CEO and a subsidiary of Orix Corp. (NYSE: IX). The deal is expected to close in April and the purchase price was not disclosed.

Tokyo-based WingArc1st provides business intelligence and enterprise output management, commonly referred to as EOM, software. EOM software helps companies manage data created throughout their computer systems, while business intelligence software analyzes raw data. WingArc1st sells software licenses and maintenance support for software hosted on its customers’ servers, but has also started providing cloud-based versions of its software, which the company views as a growth opportunity. Its SVF EOM software and, on the business intelligence side, Dr. Sum EA are the best-sellers in Japan in their respective markets, according to the company.

The sellers in the deal are Hiroyuki Uchino, CEO of WingArc1st, and OPI2002 Investment Fund, the ORIX subsidiary. Uchino, who is staying with WingArc1st, says his company will use Carlyle’s experience in the IT sector to expand its businesses and further develop its cloud computing services for Japanese enterprises.

Carlyle is an alternatives asset manager with $183 billion under management, including $1 billion in the Japanese buyout fund, Carlyle Japan Partners III, that funded the WingArc1st deal. Carlyle has been busy in the middle market space in recent months. Earlier in March, Carlyle acquired majority stake in JenCap Holdings, a New York insurance broker and Wholesale Trading Co-Op Insurance Services, which will be renamed Wholesale Trading Insurance Services. In February, the firm announced it had raised $2.4 billion for its Carlyle Equity Opportunity Fund II middle-market buyout fund. In January, Carlyle formed a new pharmaceutical company, Phoenix Therapeutics, partnering with Bourne Partners, a health care focused investment bank and consulting firm, to look for acquisitions in the pharma space. And in September 2015, Carlyle and the Chertoff Group business and M&A advisory backed Coalfire Systems Inc., which offers cybersecurity protection.


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