CapVest to buy Datasite

Private equity firm CapVest Partners has agreed to acquire US-based software-as-a-service (SaaS) provider Datasite for an undisclosed sum.

Subject to customary closing conditions and regulatory approvals, the deal is expected to complete in the fourth quarter of 2020.

Located in Minneapolis, Datasite provides SaaS services for customers throughout the mergers and acquisitions (M&A) industry.

Its offerings include virtual data rooms, which allow clients to exchange data and complete transactions more quickly.

Datasite has over 750 employees in 13 countries worldwide and increased its revenue by over 30.0 per cent in 2019, according to the press release.

The transaction will strengthen the target’s products, including its core due diligence platform, Datasite Dilligence, which assists with the preparation of transactions.

Rusty Wiley, the group’s chief executive, said: “This is an exciting day for the entire Datasite family – employees, customers and industry partners alike – and further solidifies the company’s position as a leading SaaS provider for the global M&A community.

“CapVest’s long track record of transforming the size and scale of their portfolio companies and enabling them to realise their potential makes them an exciting partner for our next phase of growth.”

Wiley added the deal would also allow Datasite to launch new products to address clients’ pain points and increase the business’ efficiency.

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The target represents another addition to the CapVest’s investment portfolio, which includes the likes of Curium, United Coffee, Young’s Bluecrest and Punch Taverns.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 8,786 deals targeting data processing, hosting and related services providers announced globally since the beginning of 2020.

In the most valuable of these, Teladoc Health agreed to snap up US-based Livongo Health for USD 18.50 billion.

This was followed by Morgan Stanley announcing plans to buy E*Trade Financial for USD 13.00 billion.

Other companies targeted in this sector include Visma, and Credit Karma.

© Zephus Ltd

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