12/10/2014
Austin, TX, December 10, 2014 – Periscope Holdings has acquired BidSync, an industry leader in developing cloud-based procurement and bid notification solutions for the public sector. Periscope’s addition of BidSync creates a true powerhouse in public and higher education procurement. The combined company will retain the name Periscope Holdings. The transaction closed on Monday, December 8, 2014.
BidSync is best known for its eSourcing solutions and for having the largest government bid notification system in North America, enabling suppliers and vendors to identify and respond to more bid opportunities, while Periscope has created a strong reputation in eProcurement, along with being the sole custodian of the NIGP Commodity/Services Code and the NIGP Consulting Program. Both companies are pioneers in the industry and have been instrumental in creating the solutions that have transformed public procurement over the last 15 years.
This acquisition was supported by Periscope’s private equity partner, Parthenon Capital Partners. Through Parthenon Capital Partners, the combined company will have access to strong institutional sponsorship and the growth capital necessary to drive further innovation to ensure it continues to offer the industry’s leading eProcurement and bid notification solutions. Parthenon’s investment recognizes Periscope’s strong history of thought leadership, consistent growth and profitability, and commitment to transforming public procurement. In addition, it will support the combined company’s future operational and product development plans and its drive to remain the leaders in purpose-based procurement.
“Our acquisition of BidSync is incredibly exciting and we are thrilled to bring these two public procurement industry leaders together,” said President and CEO of Periscope Holdings, Brian Utley, who will lead the merged company. “We look forward to continuing to deliver on the promise of purpose-based procurement, which has always been Periscope’s value proposition and reason for existence. I am particularly grateful for our partnership with Parthenon Capital Partners, which allowed us to form a new public procurement powerhouse.“
Periscope Holdings will continue to drive innovation for both the vendor and the agency-side of the business, with a long-term strategy to find efficiencies and new products in the combined company’s offerings. The company’s commitment to innovation and thought leadership will only grow, with a firm resolve to provide the market with the most advanced and comprehensive solutions that transform public and higher education procurement and enhance visibility for the vendor community.
“We are enthusiastic about joining the Periscope team,” said Fred Tillman, BidSync CIO and interim CEO, who becomes the combined company’s CIO. “The combination of these two eProcurement pioneers will have tremendous benefits to our customers and the eProcurement industry as a whole. Not only will this transaction bring together the two industry-leading eProcurement products for the public sector and higher education, but it also will enable BidSync and Periscope to drive further innovations that enable better purchase interactions between agencies and vendors.”
Brian Golson, Managing Partner at Parthenon Capital Partners, said, “We’re thrilled to partner with Brian Utley and the Periscope/BidSync executive team to aggressively grow the company. Periscope is poised to continue to build upon its leadership position in the government and education procurement industry.” Zach Sadek, Principal at the firm, remarked, “We are impressed with the Periscope team and their commitment to their mission of eradicating waste and providing value to every dollar spent. We’re looking forward to assisting the company as it continues to innovate and offer the industry’s leading procurement solutions.”
With the completion of the transaction, BidSync employees join the Periscope Holdings team led by Brian Utley. Periscope is headquartered in Austin, Texas, and BidSync will retain its location in American Fork, Utah.
Stephens Inc. served as exclusive financial advisor to Periscope Holdings on the transaction, and Piper Jaffray & Co. served as exclusive financial advisor to BidSync. Kirkland & Ellis LLP acted as legal advisor to Parthenon Capital Partners in connection with the transaction.
ABOUT PERISCOPE HOLDINGS, INC.
Periscope Holdings, Inc. (www.periscopeholdings.com), headquartered in Austin, Texas, is the leader in purpose-based procurement. Periscope eradicates waste and maximizes the value of every dollar spent by our public sector and higher education clients with procurement transformation solutions and services.
Periscope offers an eProcurement software suite, BuySpeed™, holds the exclusive license to maintain, enhance, and market the NIGP Commodity/Services Code, and manages the NIGP Consulting Program, which provides a wide range of procurement transformation services, including procurement strategy development, organizational assessments, relevant benchmarking, process reviews, and strategic sourcing services. Our solutions streamline processes, increase efficiency, decrease expenditures, and create transparency, allowing our clients to focus on achieving their purpose.
ABOUT BIDSYNC
BidSync (www.bidsync.com) offers cloud-based, end-to-end e-procurement solutions that help public sector agencies streamline their procurement process, maintain compliance, reduce costs, enable transparency and save time. The comprehensive solutions deliver cross-functionality through the entire procurement process from request to settle. BidSync also delivers bid notification services to 800,000 vendors nationwide. BidSync has 15 years of experience and its award-winning solutions have been relied on by more than 1,000 public sector agencies nationwide.
ABOUT PARTHENON CAPITAL PARTNERS
Parthenon Capital Partners (www.parthenoncapital.com) is a leading mid-market private equity firm based in Boston and San Francisco. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in business services, financial and insurance services and healthcare, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. Parthenon’s investment team has deep experience in corporate strategy, human capital, capital markets and operations, thereby enabling the firm to pursue complex, multi-faceted value creation opportunities.