Houlihan Lokey, the international investment bank, has acquired ArchPoint Partners, an independent investment banking firm that provides M&A and private capital raising advisory services to clients in the technology sector.
The transaction, which closed on 7 March, enhances Houlihan Lokey’s global coverage and capabilities for clients across the technology sector.
Founded in 2009, ArchPoint focuses exclusively on the technology sector. The firm advises numerous companies on financings and business combinations with key sector private equity firms as well as large-cap infrastructure and application software vendors including IBM, Microsoft, SAP, Google, Yahoo! and Symantec.
ArchPoint co-founders and managing directors John Cooper and Rob Louv will jointly lead Houlihan Lokey’s technology group, reporting to Scott Adelson and Bob Hotz, co-heads of corporate finance. Susan Blanco and Dan Williams, ArchPoint’s other co-founders, will also serve as managing directors in the group. ArchPoint’s founders previously worked together in senior corporate and banking positions at Microsoft and JPMorgan Chase, among others.
“The ubiquity of technology in every facet of society is undeniable,” says Adelson. “By joining Houlihan Lokey, ArchPoint’s banking team will be able to forge direct relationships with end-users of technology in every industry in which we do business; similarly, these end-users will now have access to unmatched technology expertise, particularly in the software space. This acquisition is a fantastic addition to the arsenal of intellectual capital we provide our clients, and we’re delighted that the ArchPoint team is joining Houlihan Lokey.”
In 2013, US technology M&A volume totalled USD128.7bn, the highest in more than a decade. Year to date, 2014 volume through February was already more than USD43bn, according to Thomson Reuters data. Other factors, including continued private equity interest in the sector and the widespread belief that the global economy is improving, support continued deal activity in the sector.
Both Houlihan Lokey and ArchPoint advised themselves on the transaction. Manatt, Phelps & Phillips served as legal counsel to Houlihan Lokey and Holland & Knight was legal counsel to ArchPoint.
