Advent International Agrees to Acquire Majority Stake in TSG

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LONDON, June 27th, 2019 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has signed a definitive agreement to acquire a majority stake in Transaction Services Group (“TSG”), a leading provider of business management software and integrated payments solutions to the Health & Fitness and Childcare verticals in partnership with the company’s management team and its founder, Murray Bolton.

TSG has deep domain expertise serving the “subscription economy.” Its unique offering of integrated payments, software and value-added services helps gyms, community clubs and childcare centres manage their members & customers, driving improved member retention and revenue performance, and reducing administrative burden and cost. Over the last three years, TSG has more than doubled its revenue, through both strong organic growth and several strategic acquisitions. Founded in 1994 in Auckland, New Zealand, the company now also operates across Australia and the UK, with emerging customer bases in Japan, Europe, and the US.

“TSG represents a unique platform at the nexus of business management software and payments, which is well positioned for future growth. We are excited to support TSG to drive product innovation and further expand its geographical footprint”, said Jeffrey Paduch, Partner at Advent International.

“This is an exciting time for TSG, which has seen phenomenal growth in recent years. Our partnership with Advent will allow us to build on this momentum as we invest further in our platform to deliver ever-greater value to our clients. Advent’s distinguished track record in the payments and software space and global presence will be invaluable for TSG as we enter into the next phase of international expansion.” said Steven Holmes, Group Chief Executive Officer at TSG.

Advent has significant investment experience in the payments and software industries. In the past 10 years, Advent has invested $3.8 billion in nine platform companies in payments and $3.8 billion in six companies in software worldwide. In addition to TSG, investments in the payments sector include Prisma, Clearent/Fieldedge, Concardis, Nexi, Nets, Worldpay, Vantiv and Monext while investments in the software sector include CCC Information Services, FinancialForce.com, P2 Energy Solutions, Skillsoft, Unit4 and KMD.

FT Partners, Goldman Sachs and UBS Investment Bank (M&A), EY (financial), Bain & Company, First Annapolis and Alix (commercial) and Weil, Gotshal & Manges (legal) advised Advent in connection with the transaction. William Blair (lead M&A), Harris Williams (co-advisor M&A), KPMG (financial), EY-Parthenon (commercial) and Skadden Arps, Slate, Meagher & Flom LLP (legal) advised the selling shareholders. Financial terms of the transaction were not disclosed.

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