Frontenac, a Chicago-based private equity firm, today announced the acquisition of Prime Technology Group ("Prime", or the "Company"), a leading provider of outsourced application development and managed software solutions for complex, highly regulated industries from Renovus Capital Partners. Financial terms of the transaction were not disclosed. Fallbrook Private Equity LLC ("Fallbrook Private Equity") and M3 Capital Partners ("M Cubed") supported Frontenac's investment in Prime.
Headquartered in Wayne, PA, Prime is a global technology services company with innovation at its core. The Company partners with its clients to develop and deliver cutting edge customized software solutions that are integral to its client's core business operations, from complex software solutions for pharmacy benefit management systems to data warehousing solutions that enable insurers to underwrite a variety of insurance products. Prime then works with its clients on an ongoing basis to support and maintain these systems. Prime leverages its deep industry expertise, subject matter experts, proprietary IP, and software frameworks to solve critical pain points for its clients in the healthcare, insurance, and financial services industries.
"Prime fits perfectly with our vision of building a best-in-class application development and modernization services business and adds to our franchise of investing in high-quality services businesses," said Ron Kuehl, Managing Director of Frontenac. "Fallbrook Private Equity and M Cubed were great to work with and their industry knowledge was a real value-add during the diligence process."
"Partnering with Frontenac will enable us to fast-track the maturing of our platforms, deepen our market penetration and accelerate our growth. This is a big win for our company, our employees and our customers," said Sudhakar Goverdhanam, Prime's founder and CEO.
"Sudhakar and his team are benefiting from major tailwinds in the IT services industry, and we are excited about the Company's ongoing prospects," said Krishnan Ramaswami, Managing Director of Fallbrook Private Equity. "Prime is a great lower middle-market company that fits our firm's core thesis. Working with the Prime team throughout the process we can see they have the knowledge and experience for future success," added Neal Doshi, Managing Partner of M Cubed.
Honigman LLP served as legal counsel to Frontenac on the transaction. DLA Piper served as legal counsel to Renovus and Prime. 360Advisory and Raymond James acted as financial advisors to the Company.