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TA Associates and Warburg Pincus mull $2bn Procare sale

Private equity firms TA Associates and Warburg Pincus are exploring a sale of portfolio company Procare Solutions, a provider of child-care management software, that could value the business at nearly $2bn, including debt, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as confirming that the firms have hired investment bank William Blair to advise Procare on a sales process that is expected to formally launch after next week’s Labor Day holiday in the US.

The auction for the firm, which generated earnings before interest, taxes, depreciation and amortisation (EBITDA) of about $70m last year and expects cash flow to touch $100m in 2023, is expected to attract interest from private equity firms, according to Reuters’ sources.

TA Associates took a majority stake in Procare in May 2015 before selling a part of its stake in the company to Warburg Pincus in 2018.

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