Renovus Capital Partners Acquires Prime Technology Group, an IT Outsourcing Provider
Wynnewood, PA – Renovus Capital Partners (“Renovus” or the “Fund”) announced today the acquisition of Prime Technology Group, Inc. (“Prime” or the “Company”). Renovus is an education-focused private equity firm based outside of Philadelphia, PA. As part of the transaction, Renovus acquired a majority stake in the business with the founder and CEO retaining a significant interest in the Company.
Prime, based in King of Prussia, Pennsylvania, is a provider of customized software solutions and mission critical IT services to insurance, healthcare and other companies that provide web-enabled services. Prime’s staff works with a customer to develop and install complex technology systems that support their core business operations, from systems that help insurers underwrite policies to data warehouses filled with patient data. The Company then works with the customer on an ongoing basis to support and maintain these systems. One of the Company’s core products is a Learning Management System (“LMS”) that customers can use to train employees and disseminate critical information to their workforce. Under its new partnership with Renovus, the Company intends to better leverage its LMS capabilities and expand into the education and training verticals.
“The partnership with Renovus is a great opportunity to accelerate the growth of the business,” noted Sudhakar Goverdhanam, Prime’s founder and CEO. “We understand how to build and maintain complex technology systems but could benefit from a strategic partner that can help us penetrate new verticals. The Renovus team has had a lot of experience in the education and training sectors and can really help us successfully pursue our education industry initiatives. Together we have the resources to significantly grow the business.”
“Sudhakar has built a high-quality business with great customer relationships,” added Atif Gilani, a Renovus founder. “We spent a significant amount of time speaking with customers and came away very impressed with both Prime’s technical capabilities and customer support skills. These relationships translate into an IT services business where the customer retention is very high and the overwhelming majority of revenue is recurring.”
“The Company’s focus on specific verticals is a key differentiator in today’s marketplace where IT systems are becoming increasingly specialized,” concluded Brad Whitman, a Renovus founder. “We think Prime can use this same model to expand its presence in growing industry verticals like education.”
DLA Piper advised Renovus on the transaction while Greenberg Traurig advised Prime.
About Renovus Capital Partners
Founded in January 2010, Renovus Capital Partners is a $185 million, education-focused private equity fund based in Wynnewood, PA, a suburb of Philadelphia. Renovus invests in small and mid-sized businesses within the education and training sectors, including both educational institutions and companies that provide these institutions with technology, content and services. The Fund is particularly interested in growth-oriented businesses, and the Renovus team actively partners with management to build its portfolio companies through acquisitions, new strategic initiatives and operational improvements. The Renovus team has a combined 50+ years of experience investing in the education and training sectors and the founding partners have been working together since 2005. Renovus is a licensed SBIC. For additional information on Renovus Capital Partners, see www.renovuscapital.com.