Lightyear Capital, a private equity firm that focuses on financial services, along with co-owner Insight Venture Partners, has entered into a definitive agreement to sell ARGUS Software, Inc to Altus Group Limited (TSE:AIF) forUSD$130 million.
Through its affiliated investment fund, The Lightyear Fund, L.P., Lightyear invested in Realm Business Solutions Inc. in 2006, which was renamed ARGUS Software, Inc.
Lightyear identified ARGUS as a company with strong management, significant growth opportunities and an attractive recurring revenue business model as part of its financial technology sourcing activities. Since Lightyear’s investment, ARGUS completed two acquisitions that broadened its product offerings and geographic reach and divested a non-core business to enhance its growth. Additionally, ARGUS increased its penetration in international markets, growing non-US revenue from approximately 10% of total revenue in 2006 to over 30% in 2010. ARGUS also developed next-generation technology, ARGUS Enterprise, to enable the world’s largest owners of commercial real estate to manage investment performance at a portfolio level.
“ARGUS’s senior leadership team did an exceptional job managing through the significant downturn in the commercial real estate markets over the past few years and continued to invest in new products while maintaining a high level of profitability,” says Donald B Marron (pictured), Chairman of Lightyear. “We believe that under Lightyear’s ownership, ARGUS’s management successfully positioned the firm for the future and this deal represents sustained momentum in Lightyear’s financial technology investing activities.”
The deal is expected to close during the second quarter of 2011, pending the satisfaction of closing conditions including regulatory approval.