M&A wrap: GTCR, Resonetics, Ultimate Software, Hellman & Friedman, Astia

resonetics

GTCR-backed Resonetics has acquired Caribou Technologies, expanding the buyer's services into centerless grinding, forming, coiling, and machining. The deal represents Caribou's third acquisition for Resonetics in precision micro-manufacturing over the past year, following investments in Medelec and STI Laser. Caribou also grows Resonetics in the medical devices sector. "Consistent with our initial investment thesis for Resonetics, the Caribou acquisition strategically enhances the company’s capabilities, geographic reach and customer portfolio," says Resonetics CEO Chip Hance. "We believe that the recent acquisitions combined with the company’s strong organic growth have established Resonetics as a leading supplier of specialized componentry for interventional medical device companies.” GTCR invested in Resonetics in 2018. Kirkland & Ellis and PwC advised GTCR.

Technology M&A is thriving, and private equity firms are hot on the trail of innovations that will drive sustainable value to customers and make companies more efficient, more effective and less expensive to run. Among the developments appealing to PE investors are: artificial intelligence, data management, data virtualization, digital marketing, healthcare IT, industrial automation, the Internet of Things, machine-to-machine learning, payment processing and Software-as-a-Service. To gain more insights into what kinds of tech deals will dominate the field in 2019, Mergers & Acquisitions reached out to 10 private equity firms that are active investors in technology: Francisco Partners, Genstar, Great Hill, HGGC, Insight, LLR, Riverside, Silver Lake, TA and Vista.

Related: 10 private equity firms share strategies for tech M&A.

Call for nominations
Time is running out. Nominations are due Feb. 8 for Mergers & Acquisitions' 12thAnnual M&A Mid-Market Awards, which will honor leading dealmakers and deals that set the standard for transactions in the middle market in 2018. CLICK HERE TO SUBMIT NOMINATIONS.

Deal news
A group led by Hellman & Friedman is buying cloud software company Ultimate Software Group for $11 billion. Stroock & Stroock & Lavan represented Ultimate. Read the full story: Ultimate Software to go private.

Hidden Harbor Capital Partners has raised its debut fund at $265 million. The PE firm will seek to invest in businesses with up to $500 million in revenue and $25 million in Ebitda. Probitas Partners served as the firm's placement agent and Kirkland & Ellis provided legal counsel.

DiscoverOrg has acquired business-to-business data provider Zoom Information from Great Hill Partners. Harris Williams advised Great Hill.

Procter & Gamble Co. (NYSE: PG) has bought feminine care products company This is L.

Sun Capital Partners has acquired dental services organization Simply Beautiful Smiles.

Riviera Partners has purchased tech talent firm Bamboo Talent.

People moves
Jamie Lerner, the CEO and president of Quantum Corp., has been named chair of the board of directors of Astia, an angel investor network that backs women-led companies. Lerner has served on the board since 2011. Priya Mathur, the former president of the California Public Employees Retirement System (CalPERS), the first woman to hold that position, has joined Astia’s expanded board. Most recently, Mathur cofounded Trustees United, a trustee-led initiative working to address the investment risks of workplace sexual harassment and misconduct.

Scott Adamson was hired by Alston & Bird as a partner. Previously with Vedder Price, Adamson concentrates on M&A in the construction, healthcare, manufacturing and technology sectors.

Bryan Taylor has joined Advent International to lead the firm's technology investment team. Taylor was previously the co-head of TPG Capital's technology group.

Featured content
Middle-market companies are increasingly open to selling themselves in 2019, and that is welcome news to banks with M&A advisory shops. Read the full story: Can mid-market M&A boost regional banks' fee income?

Not only do carve-outs account for 10 percent of all M&A activity, the percentage of carve-outs conducted by buyout firms (as opposed to strategic buyers) is on the rise, and sharply at that. And that’s important, because, at the risk of overextending the curveball analogy, the carve-out is ‘filthy stuff.’ The inherent complexities of the deal can puzzle even serial acquirers. Write Accordion's Gary Appelbaum and Eric Salit in this guest article: Carve-out curveball: How to hit a home run.

Consumerization of healthcare, high-deductible health plans, and more self-payment by patients are contributing to the overall increased demand for PT services, write Battery Ventures general partner Chelsea Stoner in this guest article: Rising demand for physical therapy drives deals.

Mergers & Acquisitions has named 36 leaders the 2019 Most Influential Women in Mid-Market M&A, including Kainos Capital's Sarah Bradley, Kayne Anderson Capital Advisors' Nishita Cummings and Pelham S2K Managers' Venita Fields. All 36 are outstanding dealmakers both inside and outside of their firms. This year, we asked the featured dealmakers to tell their own stories through Q&As, including their advice for women.

Related: Meet the 2019 Most Influential Women in Mid-Market M&A.

Mergers & Acquisitions asked leading dealmakers about their outlook for the middle market in 2019. Watch the video conversations, shot at ACG Philadelphia's M&A East: It is a seller's market, and deal activity is expected to remain steady, says Ramsey Goodrich of Carter Morse & Goodrich: Outlook 2019: Great time to sell. Private equity firms and strategic buyers will use their excess cash and capital to look for deals, says Bharat Ramprasad of Stifel Nicolaus: Outlook 2019: Excess capital to fuel M&A. Rising interest rates and regulatory changes may increase volatility, cautions Mark Emrich of Murray Devine: Outlook 2019: Keep an eye on rising interest rates.

Family-owned businesses require a lot preparation to sell to PE firms, says Carls Marks Advisors' Warren Feder. Watch the video: How to prep a family biz for sale to private equity.

Events
ACG Atlanta is hosting Atlanta ACG Capital Connection at the Hotel at Avalon and Alpharetta Convention Center in Atlanta from Feb. 5-7. The allows dealmakers to network with PE firms, corporate development officers and mezzanine capital funds.

The SBIA and the AM&AA are hosting a Deal Summit at The Doral in Miami from Feb. 20-22. The event offers networking opportunities with senior-level M&A adviors and lower middle-market funds.

Video Some Healthcare Sectors More Favorable for InvestmentReimbursement light, consumer facing healthcare companies offer investors upside, says J.R. Davis, a Managing Partner with Blue Sea Capital.SPONSOR CONTENTM&ASeptember 28, 2017ACG New York hosts the 11th Annual Healthcare Conference at the Metropolitan Club in New York on Feb. 28. Dealmakers network with healthcare-focused private equity firms and other industry professionals.

ACG Minnesota and Corvus North are hosting AIM: A Women's Leadership Conference at the Minneapolis Hyatt on March 7. The conference is designed to support and encourage female leaders to grow and achieve success throughout their career journeys.

ACG New York is hosting women of leadership golf event and reception on March 21 at Konnect Golf in New York. Female dealmakers from PE firms, investment banks and lenders will be able to network and discuss middle-market trends.

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