Tech-Focused PE Firm ParkerGale Closes Debut Deal
In its first acquisition, private equity firm ParkerGale has completed the purchase of aerospace data company Aircraft Technical Publishers from its founders, as investments in the technology and aerospace industries rise.
ParkerGale is a young technology-focused PE firm in Chicago that was launched in 2014 by a team of investors previously with Chicago Growth Partners. For more on ParkerGale, see Breaking Away: Younger PE Pros Spin Off.
Founded in 1973, Aircraft Technical provides data and software programs geared toward maintaining and repairing planes to 17,000 subscribers. The company provides a database and online tools to help customers organize maintenance schedules and control inventory.
"ATP is a perfect fit for the strategy- buyout of a profitable, founder-owned technology company where our operating team can have a big impact and where we can back an executive out of our network," says ParkerGale Partner Devin Mathews.
The uptick in air travel in recent years has increased the need for upgrading and repairing fleets, driving demand for airplane parts and service. Earlier in 2015, Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) purchased aircraft parts maker Precision Castparts for $37.2 billion. The deal followed closely on the heels of Precision’s making several purchases in the middle market. Also in 2015, TransDigm Group Inc. (NYSE: TDG) agreed to acquire Breeze-Eastern Corp.(NYSE: BZC) for $206 million. For more on M&A in the aerospace sector, see As Aircraft Industry Updates Planes, Parts Makers Bring in Buyers.
Among the many trends Mergers & Acquisitions identified in our December cover story, we expect to see more private equity firms invest in technology.