Transactions

Warburg Pincus Invests in Procare Software

Warburg Pincus, a leading global private equity firm focused on growth investing, today announced that funds affiliated with the firm have made a strategic investment in Procare Software ("Procare"), a global leader in integrated child care management technology solutions. The growth investment will fund further organic and inorganic growth initiatives, support future strategic endeavors and provide liquidity to existing shareholders. TA Associates, a leading global growth private equity firm that invested in Procare in 2015, will remain a significant investor in the business. Members of Procare's management team will also retain an ownership stake.

Simultaneous with the investment, Procare has signed a definitive agreement to acquire Cirrus Group, a leading online Software-as-a-Service (SaaS) provider of dynamic operational, financial and customer management solutions for childcare centers, school districts and community education centers. Terms of the transaction were not disclosed.

Procare provides business management software, integrated tuition payment processing, parent engagement tools, hardware and data hosting to child-centered businesses and organizations. Procare's modular structure allows child center owners to select only the features they need to handle specific administrative, accounting and recordkeeping tasks such as child and family data, classroom management and parent engagement, menus and meals, and other information. Procare's payment processing offering, Tuition Express®, facilitates the automated collection of tuition, fees and other payments and is fully integrated with Procare's software offering. Procare also offers KidReports, a mobile tool for digital classroom management and parent engagement. Founded in 1992, Procare is a true end-to-end solution that supports customers of all sizes, from single-center operations to complex multinational enterprises.

"Procare Software has built an attractive market leadership position by providing a broad, high-quality product suite that serves the unique and complex demands of more than 30,000 child care centers," said Ashutosh Somani, Managing Director, Warburg Pincus. "This acquisition of the Cirrus Group platform of solutions further bolsters the company's offering and capabilities."

"We are excited to welcome Warburg Pincus as our new institutional investment partner," said JoAnn Kintzel, President and CEO, Procare Software. "The Warburg team has a proven track record of investing in high-growth software and payments businesses, and their strategic and operational guidance will be highly valuable as we accelerate our strategic growth initiatives. We also look forward to having Cirrus Group's team and brands join the Procare family."

"Since investing in Procare in May 2015, TA has been privileged to be a key partner to management, and we are proud of the growth and accomplishments Procare has achieved over this period as a leader in its industry," said Jason S. Mironov, a Principal at TA Associates and a member of Procare's Board of Directors. "We are thrilled to continue our partnership with Procare, working alongside Warburg Pincus, as the company continues to execute on its organic growth and add-on acquisition strategies."

Chandler Reedy, Managing Director, Warburg Pincus, added, "We look forward to partnering with Procare's leadership team and TA Associates to make significant investments in building on the company's many strengths, by continuing to improve the product experience for customers as well as aggressively pursuing other organic and inorganic growth opportunities."

*Transaction completed by WHA professional while at previous firm.