Madison Dearborn Partners just announced that it has agreed to make an equity investment in Aderant Holdings*. Existing investors Vista Equity Partners and the Aderant management team, led by CEO Chris Giglio, will retain significant ownership positions. Additional terms were not disclosed. The transaction, subject to customary regulatory approvals, is expected to be completed by the end of this year.
“We are very pleased to bring on an investor of Madison Dearborn’s stature and relevant industry expertise,” said Chris Giglio. “We are proud of our accomplishments since our founding in 1978 and, with the continued support and guidance of Vista Equity Partners and with the addition of our new investor Madison Dearborn, we are in a great position to continue our upward trajectory through the expansion of our services to our clients.” Aderant currently employs approximately 400 people located in 10 offices across five countries.
“As a financially and strategically sound company and an industry leader and innovator, Aderant is the type of organization we are focused on at Madison Dearborn,” said Doug Grissom, a managing director at Madison Dearborn and the head of the firm’s business and government services team. “We are pleased to be able to acquire approximately half of Vista Equity’s and Aderant management’s stakes in the business. We’re looking forward to working with Chris and his team and our new partners at Vista Equity to support Aderant and its continued growth.”
“Aderant has grown through the development of innovative new products and services for its clients,” said Jim Hickey, a principal at Vista Equity Partners. “The company has built an incredible platform and is well positioned to capture the next wave of growth. We are proud to have been a part of this success over the past four years, to realize a portion of our investment and to remain in a position to benefit from the continued growth of Aderant. This new investment and Madison Dearborn’s ongoing involvement will strengthen Aderant’s client-centric focus and should lead to an even stronger business in the future.”
BofA Merrill Lynch served as financial advisor, Kirkland & Ellis served as legal counsel, and Ernst & Young provided accounting advice to Madison Dearborn. BMO Capital Markets and Marks Baughan were Aderant’s and Vista’s financial advisors, Kirkland & Ellis provided legal advice and McGladrey provided accounting services.
* Aderant now describes itself as the world’s largest independent legal software company providing, which is technically correct.