Golden Gate Capital and Parallax Capital Partners LLC, teaming up for their fifth software-related acquisition, purchased the banking solutions group at Computer Associates International Inc.
Financial terms of the deal were not disclosed.
“We are complimentary firms,” said David Dominik, a managing director at Golden Gate. “Parallax has strong operating and industry experience, which compliments our experience in analytics.”
Golden Gate raised its oversubscribed inaugural fund in 2001, closing at $700 million, $200 million over the target amount.
The deal materialized through a relationship between Parallax and Updata Capital, a New Jersey-based investment firm.
Updata initiated the transaction, acted as financial advisor and assisted in the negations for CA.
“They were buried in CA,” said Jim Hale, managing director at Parallax, in reference to the new acquisition.
According to Hale, plans for the yet-to-be-named acquisition include internal growth through re-investing in its products and looking at strategic follow-on purchases.
Jim Shaper has been appointed chairman of the new company. Schaper’s most recent role was as CEO of Agilisys, a software business solutions provider. Agilisys was formerly owned by SCT Corp., and functioned as its Manufacturing and Distributions Solutions Division, before being acquired by Golden Gate and Parallax (see Buyouts, 4/29/02).
The banking solutions group, headquartered in Maitland, Fla., offers a suite of back-office software applications used to streamline banking operations. These applications automate commercial and retail functions, such as tracking customer transactions and assimilating key customer data.
The acquired portfolio of products include Infopoint, Bank Performance Management, Solutions for Enhanced Productivity and Performance and the Customer Risk Informant product.
“The exit is part of our strategy to focus on our six core areas, including enterprise management, security, storage, application life cycle management, data management and application development,” said Bob Gordon, a spokesman for CA. “This sale [to Golden Gate and Parallax] completes the sale of all components of our business applications business that did not meet our core requirements.”