MEMPHIS, April 7 2014 – SSM Partners (“SSM”), a leading growth equity firm, announced today that it has sold its interest in Third Coast Holdings, Inc. (“Third Coast Holdings” or the “Company”), doing business as Datacert, as part of the Company’s sale to Wolters Kluwer Corporate Legal Services. The transaction values the Company at $290 million. SSM, the only institutional investor, led a $10 million financing round in 2007.
Datacert, based in Houston, Texas, provides enterprise legal management software and services for general counsel offices and law firms in the United States and internationally. The Company has seen strong growth in the past several years and over 80% of revenue is subscription based.
SSM’s investment in Datacert is a strong example of the growth equity strategy on which SSM has been focused exclusively for almost 10 years. The hallmarks of this strategy are companies with a proven business model, limited prior institutional investment, substantial organic growth, and breakeven or positive cash flow. The strategy combines some of the best elements of venture capital and leveraged buyout strategies – organic growth, low principal losses, and return consistency. The growth equity asset class has received recent attention from firms such as Cambridge Associates as detailed in their June 2013 report “Growth Equity Is All Grown Up.”
Wilson Orr, Managing Partner of SSM, said “As evidenced by the success of investments such as Datacert, we feel that growth equity represents an attractive asset class and are optimistic about the future. We look forward to continuing to partner with exceptional companies and entrepreneurs to build value for those companies, their employees, and SSM’s limited partners.”
To view the Third Coast Holdings and Wolters Kluwer press release, please visit:http://www.wolterskluwer.com/Press/Latest-News/Pages/Press%20Releases/2014/Wolters-Kluwer-Completes-Acquisition-of-Remaining-62-of-Third-Coast-Holdings.aspx#.U0KaZleh2-E.