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Transactions

November 2011
have acquired majority interest in
from


Background

Private equity firm Welsh, Carson, Anderson & Stowe (“WCAS”) is one of the largest and most successful private equity investment firms in the United States.  Since its founding in 1979, WCAS has organized 15 limited partnerships with total capital of $20 billion, which it has invested into more than 150 companies.  The firm focuses its investment activity exclusively in information/business services and healthcare – seeking to buy growth businesses, partner with outstanding management teams and build value for investors through a combination of operational improvements, internal growth initiatives and strategic acquisitions.

In mid-2011, Marlin & Associates (“M&A”) met with members of the WCAS senior management to discuss potential investment opportunities.  At that time M&A highlighted several potentially interesting opportunities including Triple Point Technology, Inc. (“TPT”, “Triple Point” or the “Company”). 

Founded in 1993, Triple Point Technology, based in Westport, Connecticut, is a provider of software to manage commodities and enterprise risk.  The Company’s over 600 employees serve clients in Asia, Africa, Australia, Europe, North America and South America from its development and support centers in Westport, Houston, Miami, Singapore, London, Pune and Chennai.  M&A was familiar with the Company, having advised TPT on its recapitalization by ABRY partners in 2006 and having maintained close ties to both TPT and ABRY over the intervening years.  Founded in 1989, ABRY Partners is one of the most experienced and successful media, communications, business and information services-focused private-equity investment firms in North America.



Overview

In December 2011, Welsh, Carson, Anderson & Stowe XI, L.P. acquired majority control of TPT from ABRY Partners and TPT’s management in a transaction that was funded through a combination of new equity, roll-over equity, senior secured debt and mezzanine debt.

The terms of the transaction were not disclosed.  According to a Standard & Poor’s Credit Research Report, the transaction included about $255 million of senior secured credit facilities and involved pro forma adjusted leverage of about 6.1x 2010 EBITDA (including treatment of preferred stock as debt).

M&A Role

Marlin & Associates identified Triple Point as a potential opportunity, helped WCAS conduct a thorough review of TPT’s business and financial results and worked with WCAS to conduct negotiations - seeking and finding resolution for deal-related issues.  Ultimately, M&A helped WCAS acquire majority control of TPT acting acted as exclusive strategic and financial advisor to WCAS for one of the energy and commodities technology sector industry's largest and most significant transactions.  It is the fourth significant transaction in the energy and commodities technology sector on which M&A has advised.

Press

ABRY Completes Sale of Triple Point Technology, Inc

October 28, 2011

WESTPORT, Conn., – Oct. 28, 2011 – A Company formed by Welsh, Carson, Anderson & Stowe and JMI Equity announced today that it has completed its acquisition of Triple Point Technology, Inc. from ABRY Partners and management. Management will continue to manage the business, and ABRY has invested capital alongside Welsh Carson and JMI in support of the acquisition.

Welsh Carson and JMI financed the transaction through equity and credit borrowings.  Triple Point is the leading global provider of software to manage commodities and enterprise risk. The company provides innovative solutions to competitively address the complex commodities value chain: buying, selling, trading, and procurement; enterprise risk management; scheduling and logistics; storage; processing; and settlement and accounting. Triple Point’s Commodity Management platform enables over 260 customers in over 35 countries to profitably manage exposure to energy and raw materials across industries including energy; metals; agriculture; transportation; shipping; consumer products (CP); discrete manufacturers; and big box retailers. Triple Point employs over 600 staff in 12 offices and support centers around the globe.

http://www.abry.com/home/news/11-10-28/ABRY_Completes_Sale_of_Triple_Point_Technology_Inc.aspx?ref=/home.aspx

 

About ABRY Partners

Founded in 1989, ABRY is one of the most experienced and successful media, communications, and business information services sector-focused private equity investment firms in North America.  ABRY has completed over $27 billion of transactions, representing investments in more than 450 properties.  The firm is currently managing over $3.5 billion of total capital and investing out of a $1.6 billion private equity fund, $750 million senior equity/mezzanine fund and a $1.2 billion senior debt fund.  ABRY has extensive data center investing experience, having completed over $1.5 billion of transactions and investments in data center companies such as CyrusOne, Datapipe, Hosted Solutions, Q9 Networks and Sentrum. More information is available at www.abry.com.

About Welsh, Carson, Anderson & Stowe

Welsh, Carson, Anderson & Stowe (WCAS) was formed in 1979 and has focused its investment activities in two growth industries, information/business services and healthcare. WCAS manages $20 billion in capital and has a current portfolio of over thirty companies. WCAS’s strategy is to buy growth

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