Private equity firm Black Dragon Capital (BDC) has acquired Maginus, an e-commerce software and technology solutions developer for retailers and distributors.
BDC plans to combine Maginus and Digital Goodie, another portfolio company, as part of a strategy to carve a leadership position in the large and growing Order Management System (OMS) sector serving the grocery and general product retail industries.
“The combined Maginus and Digital Goodie company will have a one-of-a-kind cloud-based Order Management System platform to handle the complete product portfolio of retailers. The enhanced scale and expanded product suite will position the company to capture a greater share of the vast OMS market, which is projected to grow at an average rate of 11 per cent a year through 2023,” says Louis Hernandez, Jr, founder, chairman and managing director of BDC, which makes control investments in growth companies and industries disrupted by digitalisation.
“The Maginus eCommerce OMS has a proven platform at scale for general product categories and has delivered proven results to retailers. When combined with Digital Goodie’s powerful grocery centric OMS initiatives, we will have a unique platform and the potential to expand recurring revenues and widen margins across multiple retail categories. The combined company will build value for customers and, we believe, promises compelling value for our investors,” Hernandez says.
BDC, which is minority-led and focuses on investments in complex technical fields, takes an operationally led, thesis-driven approach. All of the firm’s principals and advisors are successful entrepreneurs with significant experience, and they work closely with BDC portfolio companies toward creating market leaders. They have a unique perspective on the impact of digitalisation on workflow, technology, economics and human factors driving the transformation of the digital landscape. Hernandez and BDC will use the three-phrase Black Dragon Playbook to guide the transformation of the Maginus-Digital Goodie combination.
Moris Chemtov, CEO of Digital Goodie, says: “We are very excited at the potential of our combined companies. Our market leading cloud platform for groceries is a natural fit for the expanded and proven OMS platform for general products that Maginus offers. This is a perfect combination that uniquely positions us in the market, and gives our clients and partners who want to compete and win in digital commerce an advantage.”
Simon Weeks, CEO of Maginus, says: “We are excited to partner with Black Dragon Capital and their outstanding record of working with management teams to create market leading companies. We look forward to a long and successful relationship.”
