Golden Gate Capital Completes $145 Million Going Private of Concerto Software, Inc.
Golden Gate Capital’s portfolio company Melita International to simultaneously merge with Concerto Software
SAN FRANCISCO, CA (February 9, 2004) – Golden Gate Capital announced today that it has completed the $145 million acquisition of Concerto Software, Inc (NASD: CRTO), a leading provider of call center software and services. Simultaneously with the closing of the transaction, Concerto will merge with Golden Gate Captial’s portfolio company, Melita International, Ltd. (“Melita”), a global provider of outbound call center solutions. The new company, which will operate under the name Concerto Software, will be the world’s #1 provider of outbound call center software and have a strong presence in the rapidly growing unified contact center space. Oak Investment Partners, who also participated in the Melita acquisition, will join Golden Gate Capital in the transaction.
“With over $150 million of revenues, an installed base of 1,800 customers, a substantial footprint throughout the Americas, Europe and Asia Pacific (including China and India), and financial backing from Golden Gate Capital’s $700 million buyout fund, the new Concerto Software is truly a platform company. We are committed to actively support the company’s growth initiatives going forward (both organically and through acquisitions) and are pleased to welcome Concerto to our family of software companies, which in aggregate represent approximately $600 million in revenues,” stated David Dominik, a managing director with Golden Gate Capital.
“We believe the merger will have a positive impact on the industry as a whole,” said Alpa Shah, vice president, Frost & Sullivan. “The global synergies and product expansion resulting from this merger further solidifies Concerto Software’s position in the worldwide outbound dialing market. In addition, the momentum that Concerto Software has shown recently with its unified platform EnsemblePro, is evidence that the company is quickly becoming a viable contender in the large and growing inbound CIM market as well.”
Jim Foy, president and chief executive officer of Concerto Software, will remain in that position following the merger. George Landgrebe, president and chief executive officer of Melita, will assume the role of executive vice president of worldwide customer support of Concerto Software.
“With a broader base of customers and solutions, greater technology expertise, expanded services capabilities and broader distribution channels that will result from the merger, we believe Concerto Software will be well positioned against any competitor in both the inbound and outbound sectors of the CIM market,” said Foy. “I am excited by the prospect of working with the Melita team as their strong recent financial performance proves they have world class solutions, first class employees and loyal customers. The knowledge, skills, and abilities of our employees from both organizations remain key to our future success. The new company will emerge better equipped to provide customers with the most appropriate solutions to meet their business needs.”
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $700 million of capital under management. Golden Gate Capital is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. They target investments of up to $100 million in situations where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, and in particular, have been very active in the enterprise software market. For more information, visit www.goldengatecap.com.