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Gamma Technologies secures strategic investment from Cove Hill Partners

Gamma Technologies, a provider of engineering simulation software, has secured a strategic investment from Cove Hill Partners, a long-term oriented private equity firm.

TA Associates, a growth private equity firm that invested in Gamma Technologies in June 2015, will continue to remain the largest shareholder in the company following the transaction which is expected to close at the end of June 2018. Financial terms have not been disclosed.
Founded in 1994, Gamma Technologies offers a highly sophisticated computer-aided engineering (CAE) software GT-SUITE that is used by engineers to execute large-scale, integrated simulations of powertrain and vehicle systems. GT-SUITE includes a complete library of physics-based modelling software customised to address the challenges of vehicle and component design, allowing simulation of a variety of vehicle functions and subsystems, including powertrain, transmission, engine, thermal management, hydraulics, lubrication and friction, acoustics, HVAC, after treatment, general multi-body mechanics and control. Customers include all major global automotive manufacturers and most of their suppliers. Gamma Technologies announced in February its acquisition of the AutoLion® battery modelling software business from EC Power. Gamma Technologies is headquartered in Westmont, Illinois, with a European office in Stuttgart, Germany.
“As a premier CAE software provider, Gamma Technologies represents a unique investment opportunity to help drive expansion into new and emerging markets with a market leading business,” says Andrew Balson, Founder and Managing Partner of Cove Hill Partners, who will join the Gamma Technologies Board of Directors.
Balson’s Partner and Co-Founder, Justin Roberts, adds: “Importantly, Gamma is led by a strong management team that has positioned the company for continued success and is aligned with our long-term vision for future growth. We are excited to partner with Gamma Technologies’ team and are honoured to be investing alongside TA Associates.”
“In seeking to continue executing on our strategic priorities while simultaneously providing continued product innovation and the highest quality of services to our dedicated customer base, we are thrilled to have the opportunity to partner with Cove Hill Partners, a firm that has a long-term oriented approach in their investment philosophy,” says Dr Thomas Morel, Chief Executive Officer and President of Gamma Technologies. “We are also excited to continue our relationship with TA Associates, which has provided a significant amount of strategic and operational support over the past three years, helping accelerate our growth and strengthen our market position. It is a pleasure to have both long-term focused investment firms as part of Gamma Technologies.”
“Since completing our investment in Gamma Technologies nearly three years ago, the company has successfully scaled its global operations while also expanding into new industry verticals and applications,” says Hythem El-Nazer, a Managing Director at TA Associates and member of the Gamma Technologies Board of Directors. “We are delighted to partner with Cove Hill to build upon Gamma’s strong foundation and industry-leading product innovation.”
Goodwin Procter LLP is providing legal counsel to TA Associates and Gamma Technologies. Ropes & Gray LLP is providing legal counsel to Cove Hill Partners.

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