Bain looks to build on success of public-safety-tech firm TriTech

Bain Capital “moved quite quickly to prevail” in the auction process for TriTech Software Systems, said Managing Director Darren Abrahamson. “It was a space we’d tracked and a company we’d followed closely for some time.”

The San Diego provider of public-safety technology has been controlled by Insight Venture Partners, which bought a stake from Friedman Fleischer & Lowe in 2014.

“Under Insight’s ownership, the business has done a very good job both organically gaining [market] share and acquiring a number of additional platforms,” Abrahamson said.

TriTech’s software is used by police, fire and emergency-medical-services departments to enable computer-aided dispatch, reporting from the field, record management and data analytics.

“Application software and vertical market software in particular has been a major area of focus for Bain Capital for many years,” Abrahamson said, naming Applied Systems in insurance, Vertafore in healthcare and Viewpoint Construction Software as examples.

“There’s a set of software providers that have managed to solve really important and industry-specific needs for customers in those markets.”

TriTech is “still very much enterprise software, just instead of selling to insurance agents or construction contractors, you’re selling to typically local governments, cities and municipalities.”

The recapitalization, out of Bain Capital Fund XII, is expected to close by the end of Q2. William Blair was financial adviser to TriTech on the transaction.

Public-safety software has two features that Bain looks for in a software sector, Abrahamson said: It’s a relatively fragmented market and many of the customers are still using legacy-code products.

“There are literally hundreds of players who provide these solutions,” since no emergency department can function without one, he said. But only a handful have transcended local or regional status, Abrahamson said, and TriTech is the largest.

“It’s definitely reached a good scale, and it’s definitely profitable,” he said.

And though every system includes a core computer-aided-dispatch function, TriTech’s software has newer features like mobile applications for first responders, predictive crime analytics and a cloud-based record-management system that can handle increasing amounts of video from bodycams and drones.

As a “seasoned” acquirer of other businesses, TriTech has a pipeline of potential add-ons, Abrahamson said, “and we have a number of our own ideas.”

In terms of exit, everal potential strategic acquirers are in the market: Tyler Technologies and Motorola have both bought companies in the space. The firm also believes that TriTech has the potential to be a public business, Abrahamson added.

Action Item: For more on TriTech, visit https://www.tritech.com.