Thoma Cressey Backs New IT Firm

Forming the second step in the firm’s information technology effort, Thoma Cressey Equity Partners stepped in as the founding investor of ConnecTech Inc., an implementationfocused IT firm.

The $40 million equity investment will support the company’s growth strategy, which is a combination of acquisition and internal expansion, said Alan Bratton, president and chief executive of ConnecTech.

“We are putting together an organization that will serve the middle-tier market, starting in the Northeast and Midwest, then into the South Central and Southeast,” Bratton said.

The company intends to focus on creating e-business solutions for middle-market clients, by providing a team of IT professionals that will enter corporate customer offices on either a supplemental basis or as part of a team.

Bratton said the company would pursue companies that have $25 million to $40 million in revenue as platform companies, and add-on acquisitions could start with as little as $5 million in revenue. Potential clients for the integration service will be Fortune 500 companies that have $100 million to $1 billion in revenue, said Orlando Bravo, a principal at Thoma Cressey.

“We are looking for an acquisition facility of about $40 million, and the plan is to do two to three acquisitions and then grow internally,” Bravo said.

The company expects to close its first acquisition in the next month.

Thoma Cressey launched its effort in the IT area several months ago when the firm backed Nervewire, investing $60 million in the company that provides digital strategy to business-to-business companies ranging from Internet start-ups to Global 2000 companies, Bravo said.

He added that the firm intends to make a third investment in the near term that will round out Thoma Cressey’s IT portfolio.