A Palo Alto middle-market private equity firm is making waves with a series of bold acquisitions that has industry insider taking notice. The firm, HGGC, has been making aggressive moves over the past two years. Some of its most recent acquisitions include:
RPX Rational Patent. This company deals in patent risk management. It spent some $2.5 billion to buy 23,000 patents since 2008. That was the year RPX was founded. HGGC acquired the business for $555 million which was a $10.50 per share in cash.
HelpSystems. This Minnesota-based company is a global provider of systems and doc management, security and business intelligence services. It is valued at more than $1.2 billion including debt. HGGC acquired controlling interest in February of 2018.
American Megatrends International (AMI). Based in Norcross, Georgia, this firm is a hardware and software company that specializes in PC hardware and UEFI firmware. Press reports say that HGGC has made a “major strategic investment” in AMI.
Idera, Inc. This is a software Houston company providing systems and application management software for Microsoft and Linux servers. It also has offices in Australia, Austria and the U.K. Idera manages and monitors servers and also application for small to mid-size companies. It has 50,000 customers worldwide.
This just a few of the most recent high-profile activities of HGGC.
The firm was established in 2007. One of its founders is Steve Young of NFL fame. Young was quarterback for the San Francisco 49ers which he led to three Super Bowl championships. He was inducted into the NFL Hall of Fame in 2005.
Richard Lawson is CEO, Co-Founder and Chairman. Lawson was formerly established private equity funds with Huntsman Gay Capital Partners. Lawson also worked at Morgan Stanley in mergers and acquisitions. Other key members are Gregory M. Benson, Leslie M. Brown and Neil H. White.
HGGC today reports cumulative commitments of $4.3 billion. It has completed 120 portfolio transactions. Its portfolio companies represent some 62,000 employees. The companies. It has $20 billion in total transaction value.
The company has gained considerable attention for its “Advantaged Investing” model that is breaking new ground for middle-market private equity firms.