News
PNC Equity Partners, L.P. Acquires APEX Analytix, Inc.
Pittsburgh,PA [April 28, 2009]—PNC Equity Partners, II, L.P. announced today the acquisition of Greensboro, N.C.-based APEX Analytix, Inc. (“APEX”), an innovative recovery audit firm serving more than a third of the Fortune 100. APEX’s traditional recovery audit services are enhanced by proprietary software tools that detect and recover payment errors for clients.
"Our investment in APEX, with its highly differentiated product and service offering, reflects our strategy to invest in niche market leaders with sustainable competitive advantages,” said Jack Glover, Partner of PNC Equity Partners. “Moreover, we believe there is an opportunity to leverage our recent success in a similar investment to advance APEX’s value proposition to customers."
APEX provides technology-enabled recovery audit services to more than 175 customers. Through its comprehensive service and technology offering, APEX has saved clients more than $2 billion in overpayments to date.
“We were particularly attracted to APEX’s consistent track record of organic growth and future prospects,” said Mike Hand, Senior Associate of PNC Equity Partners. “Now more than ever in this challenging economic environment, companies are seeking additional ways to sustain profitability and improve cash flow. We believe APEX is uniquely positioned to capture these opportunities and continue expanding its presence in the industry.”
The transaction was led by Glover, Hand and Rob Dolan. Glover and Hand will represent the firm on APEX's Board of Directors, which will also include Michael Lustig, CEO, and Jim Arnold, President. Also serving on the Board will be David Huebner, Chairman of the Receivable Management Services Corporation, formerly a PNC Equity Partners portfolio company with dynamics similar to APEX.
"We have a strong partner in PNC Equity Partners. Their team has demonstrated a deep understanding in all aspects of our services and software, the value delivered to our clients, and our business model. We look forward to working with our new board members as we launch into our next phase of growth,” said Lustig.
Senior debt for the transaction was led by Union Bank, N.A., and also provided by TriState Capital Bank. Subordinated debt was provided by Babson Capital Management LLC.
Based in Pittsburgh, Pennsylvania, PNC Equity Partners (www.pncequity.com) invests in “important companies operating in micro-markets™,” making private equity investments of $10 million to $30 million in leveraged buyouts, recapitalizations and large minority financings of middle market companies with enterprise values between $25 million and $150 million across a variety of industry sectors, including outsourced services, niche manufacturing, and value-added distribution.
