TA Associates continues to invest in the financial services space. The Boston private equity firm completed a majority investment in Procare Software, a payments provider of childcare management companies.
Procare, founded in 1992, provides payment processing hardware and data hosting to childcare businesses and organizations. The Medford, Oregon, company assists managers in streamlining various administrative and recordkeeping tasks.
Procare’s payment processing services, dubbed Tuition Express, allows for automated collection of tuition, fees and other payments. It is directly integrated into the company’s software suite, which also keeps track of student attendance, emergency contact information, immunizations and meal plans. Procare currently serves more than 25,000 childcare providers.
“We see a number of avenues to further Procare’s growth and will leverage TA’s strategic guidance and significant network of contacts in this effort,” says Jeffrey Blum, president and founder, Procare Software.
Some of Procare's customers include Springfield Learning Tree and Kids Kastle Learning Center Inc. Financial terms of the TA investment remain undisclosed.
The transaction coincides with dealmaker expectancy for more M&A in the financial services sector, according to our Mid-Market Pulse index, a forward-looking sentiment indicator created by Mergers & Acquisitions and published in partnership with McGladrey LLP. TA Associates has been active in the space over the course of several months.
The Procare deal was announced on the heels of TA's investment in YeePay, a China-based payments service provider, in March. Far East Horizon Ltd. (HKG: 3360), a provider of financial leasing, partnered with TA on the investment.
The firm's other recent transactions include an investment in NorthStar Financial Services Group LLC, a product support service for independent broker-dealers; Access Technology Group, a Colchester, England-based management software provider that handles company human resources duties such as payroll; and revenue management company RateGain, headquartered in Noida, India.