Glory

Glory

Glory

Cherry Tree Advises GLORY on its Investment in Acrelec Group SAS

INDUSTRY:
Technology, Business Services, Manufacturing, Consumer
DESCRIPTION:
Global Provider of Customer Experience Self-Service Solutions for the Quick Service Restaurant and Retail Industries
LOCATION:
Basingstoke, England and Saint-Thibault-des-Vignes France
TRANSACTION TYPE:
Strategic Advisor to Acquirer

Situation:

UK-based Glory Global Solutions (International) Ltd. and its parent company GLORY LTD published its 10-year Long Term Vision in 2018, with the stated goals of expanding business domains and increasing sales by more than 100%. As part of that vision, Glory identified the fast-growing self-service kiosk industry as a strategic adjacency to its existing cash technologies business, with large market potential and strong synergy opportunities. Internal analysis of the space identified acquisition as the preferred entry into the market, allowing Glory to become an industry leader very quickly. However, because Glory already has many partners and competitors in its strategic adjacencies (including the kiosk space), it would have been difficult for them to approach acquisition targets without unnecessarily exposing strategic initiatives.

Cherry Tree’s Personalized Solution:

Cherry Tree leveraged its buy-side M&A advisory experience to develop a custom plan to identify acquisition targets within the self-service kiosk industry for Glory. After completing initial evaluations of the targets, Cherry Tree introduced select targets to Glory to initiate acquisition discussions. One of these select targets was Acrelec Group SAS, a French firm that is focused on software, hardware, and services to reinvent the customer experience for restaurant and retail brands. Cherry Tree assisted Glory on its deep evaluation of Acrelec, including financial modeling, due diligence, and the negotiation of the purchase agreement.

Outcome

In April 2020, Glory invested approximately $223 million for a majority stake in Acrelec. The investment provides Glory a leading position in a fast-growing market and will provide Acrelec the strategic resources needed to bring its solutions to customers across the globe. The partnership is in-line with the Glory Group’s Long Term Vision.

About Glory

GLORY: As a global leader in cash technology solutions, Glory provides the financial, retail, cash center and gaming industries with confidence that their cash is protected and always working to help build a stronger business. The Company’s cash automation technologies and process engineering services help businesses in more than 100 countries optimize the handling, movement and management of cash. While Glory spans the globe, the Company personally engages with each customer to address their unique challenges and goals — enhancing staff efficiency, reducing operating costs and enabling a more rewarding customer experience. Employing over 10,000 professionals worldwide with dedicated R&D and manufacturing facilities worldwide, Glory is built on a rich customer-focused, technology-driven heritage spanning more than one hundred years.

About Spectrum Equity

Acrelec is a global technology company focused on reinventing the customer experience for restaurant and retail brands. Leveraging decades of software, hardware and service expertise, Acrelec develops and integrates new platforms that increase customer engagement, optimize efficiency and improve operations. The Company’s 900 employees collaborate with customers and partners to design, create and build the world’s leading smart stores. Never satisfied with the status quo, Acrelec’s passion is in delivering breakthroughs that drive business results.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

OurFamilyWizard

OurFamilyWizard

OurFamilyWizard

Cherry Tree Advises OurFamilyWizard on an Investment by Spectrum Equity.

INDUSTRY:
Consumer Software-as-a-Service
DESCRIPTION:
Provider of Software-as-a-Service Co-Parenting Applications
LOCATION:
Minneapolis, Minnesota

Situation:

In March 2020, the owners of OurFamilyWizard (“OFW”), the leading provider of SaaS-based co-parenting applications, welcomed as an equity partner Spectrum Equity. OFW was founded in 2001 and developed the industry leading co-parenting app, for a market that had little to no modern software solutions. The company experienced rapid adoption and growth as they worked with family law professionals and court systems that saw the need for co-parenting tools to help their clients through one of the most stressful situations in their lives.

The investment by Spectrum Equity will help OFW in continuing their mission to improve communication and reduce conflict in families after divorce or separation. Spectrum is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. Some of Spectrum’s current portfolio companies include SurveyMonkey, Headspace, The Knot Worldwide, and Ancestry.

Cherry Tree’s Personalized Solution:

Cherry Tree provided advice to the OFW management and its Board over many years, as they evaluated inbound interest and considered when would be the right time to bring in an experienced investor to support the company’s continued growth, while providing some liquidity for their original investors. Cherry Tree guided OurFamilyWizard through discussions with and evaluations by numerous parties, including a competitive process that resulted in a relationship with Spectrum Equity. Cherry Tree’s customized services included introductions and discussions with numerous potential investors in marketing the opportunity, soliciting proposals, negotiating terms, supporting due diligence, and facilitating the closing of the transaction.

Outcome

OFW’s strong financial performance, user engagement, and market leading position piqued the interest of numerous financial partners. OFW ultimately decided to proceed with Spectrum Equity as a partner due to their experience in supporting high growth consumer software solutions and their commitment to building high quality, long-lasting businesses.

About OurFamilyWizard

OurFamilyWizard: Headquartered in Minneapolis, MN, OFW invented the concept of a co-parenting application. Its website, iOS and Android applications have been used by nearly one million people since the company was founded in 2001. The platform allows parents to communicate, share calendars and journals, track expenses and transmit payments. OFW is recommended by family law attorneys, mental health practitioners and courts in all 50 states, Canada, the United Kingdom, Australia and New Zealand.

About Spectrum Equity

Spectrum Equity: Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with proven entrepreneurs and management teams to build long-term value in market-leading software, information services and Internet companies. Representative investments include Ancestry, Bats Global Markets, Definitive Healthcare, GoodRx, Grubhub, Headspace, Lynda.com, SurveyMonkey, The Knot Worldwide and Verafin. For more information, including a complete list of portfolio investments, visit www.spectrumequity.com.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Agosto

Agosto

Agosto

Cherry Tree Advises Agosto on their Sale to Pythian, a Portfolio Company of Mill Point Capital.

“After our initial meeting with Cherry Tree, it was apparent that they were very knowledgeable about our industry and would be the right company to represent Agosto,” said Irfan Khan, founder and former CEO of Agosto. “Cherry Tree acted as trusted advisor to Agosto for four years, helping us position the company for an eventual sale. They served us with thoughtful guidance and integrity, ultimately helping us make sound decisions that culminated in a successful sale.”

Irfan Khan, Founder and Former CEO of Agosto

INDUSTRY:
IT Services, Technology, Business Services
DESCRIPTION:
A Premier Google Partner, Agosto is an Award-Winning Cloud Service Company
LOCATION:
Minneapolis, Minnesota
TRANSACTION TYPE:
Sale to a Private Equity Backed Strategic Buyer

The Opportunity:

Agosto was founded in 2001 and grew organically to become one of Google Cloud’s top channel partners, receiving Partner of the Year awards for performance in 2013 (Global) and 2016 (Americas). Cherry Tree’s Executive Director of its technology practice approached Agosto in 2016 as the public cloud market was beginning to heat up and Google Cloud was gaining traction. Having received inbound interest from multiple strategic parties, Agosto retained Cherry Tree to act as its exclusive representative and investment banking advisor. Since then, Cherry Tree has provided advice on the Company’s strategic and financial plans, including key business decisions and alternatives related to the sale and capitalization.

Cherry Tree advised Agosto shareholders on the complex task of selling its core business while maintaining ownership of its digital signage SaaS business unit called Skykit. Given Agosto’s compelling business model, market presence and reputation as a Premier Partner of Google, the process attracted the interest of multiple financial and strategic parties. Mill Point Capital’s proposal to combine Agosto’s re-seller model with Pythian’s global professional services capabilities was compelling and resulted in the best strategic opportunity for the Agosto shareholders.

Cherry Tree’s Role:

Cherry Tree was retained by Agosto shareholders to advise them on business and capital strategies to support their vision for continued growth in Google Cloud products and services. It was important to Agosto that its customers, employees, and partnership with Google were strengthened while they capitalized on the explosive growth of public cloud platforms within enterprises large and small. Cherry Tree advised Agosto through the development of business plans, financial reporting, and strategy formulation. Cherry Tree then led the Agosto shareholders through a process of discussions with Mill Point Capital and Pythian, coordinated due-diligence, negotiated terms and ultimately facilitated the closing of the transaction.

Outcome

Agosto was acquired by Pythian Services Inc. (“Pythian”), a leading cloud data and analytics services company. Pythian, a Mill Point Capital portfolio company, has been helping organizations use data, analytics, and the cloud to transform and win for over 20 years. Agosto shareholders have retained 100% ownership in Skykit.

About Agosto

Agosto is an award-winning cloud services company and one of the largest and most innovative Google Cloud Platform Partners in the world with specializations in IoT, Infrastructure, Application Development and Work Transformation-Enterprise. The company helps organizations leverage Google Cloud products by providing technical solutions, change management and training, migration and deployment from legacy systems, ongoing admin support, and custom product development.

About Pythian

Pythian is a global IT services company that helps organizations transform how they compete and win by turning data into valuable insights, predictions and products. From cloud automation to machine learning, Pythian designs, implements and supports customized solutions to the toughest data challenges. A Google Cloud Premier Partner with specializations in Cloud Migration, Data Analytics, Machine Learning, and Infrastructure, Pythian was also named 2018 Google Cloud Data Analytics Partner of the Year.

About Mill Point Capital

Mill Point Capital is a private equity firm targeting control investments in lower-middle market businesses, with a focus on industrials and business services companies in North America. Mill Point’s experienced team of investors and Executive Partners seek to enhance the value of portfolio companies by executing transformative strategic initiatives and operational improvements. Mill Point is based in New York, NY.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Lifesprk

Lifesprk

Lifesprk, LLC

Cherry Tree served as Lifesprk’s exclusive investment banking advisor in its $16.1 million Series A Preferred stock investment led by Virgo Investment Group.

“As we sought strategic and financial partners to help us accelerate growth, we looked favorably on experienced healthcare investors who shared our vision for innovation and wellness as well as having deep expertise in scaling value-based, technology enabled models,” said Joel Theisen, BSN, CEO of Lifesprk, “and Cherry Tree was instrumental in running the entire process. They understand our business, prepared our material and our team for great conversations with top-tier investors, then lead us through to completion. We are very grateful for their partnership.”

Joel Theisen, BSN, CEO of Lifesprk

INDUSTRY:
Healthcare Services, Technology Enabled Services
DESCRIPTION:
Provider of Whole Person Services for Seniors
LOCATION:
St. Louis Park, Minnesota
TRANSACTION TYPE:
Growth Capital Financing

The Opportunity: Accelerating Growth

Lifesprk, LLC (“Lifesprk”), headquartered in St. Louis Park, MN, is a leader in whole person services for seniors. The company provides a majority of its services in the Twin Cities metropolitan area as well as the Salt Lake City region through its Homespire joint venture with Utah-based Intermountain Health Care. In 2019, Lifesprk also partnered with North Memorial Health and UCare, a large independent, non-profit health plan company, to provide services to the Medicare Advantage population under a value-based program. Although the Company had stable liquidity to provide sufficient resources for its organic growth, it required additional resources for the many expansion opportunities, and Cherry Tree was hired to raise capital in support of their growth plans.

In March 2020, Lifesprk secured a $16.1 million Series A Preferred stock investment led by Virgo Investment Group (“Virgo”) to fund organic growth, strategic partnerships, and implementation of a propriety technology platform that enables its Life Experience Alternative Delivery System (LEADS.)

Cherry Tree’s Role:

Cherry Tree served as Lifesprk’s exclusive investment banking advisor. It was important to Lifesprk shareholders that their capital partner strengthen their commitment to clients, employees and partnerships as the Company capitalizes on the rapidly growing market for value-based senior services. Cherry Tree played a prominent role from the pre-process business planning and strategy development phase and led management through the process of discussions with potential capital partners, including Virgo, ultimately culminating in due diligence, negotiating terms and facilitating the closing of the transaction.

Outcome

Lifesprk will invest in technological innovations to operationalize LEADS by using its proprietary Electronic Life Record (ELR) to deliver complete information to clients, families, and caregivers through proprietary and third-party applications. This allows Lifesprk to address two primary challenges in senior healthcare services: the lack of tracking SDoH and interoperability.

Lifesprk’s whole person solutions are perfectly timed for expansion and disruption in the senior care market. The new era of population health-related market dynamics that are shifting compensation from reactionary and transactional models towards value-based healthcare systems.

About Lifesprk

Lifesprk, founded in 2004, is a leading provider of proven whole person primary care, in-home health, and SDoH services for seniors, utilizing a unique, proprietary, value-based population health solution that delivers the “triple aim” of improved client experience, improved outcomes, and lower total cost of care. Based in St. Louis Park, Minnesota, Lifesprk’s Life Experience Alternative Delivery System (LEADS) is a proprietary, technology-enabled delivery system focused on the whole person that improves client experience and quality outcomes, lowering the total cost of care and building life-long affinity. The first complete payor-agnostic community-based delivery system, LEADS can be applied to a full continuum of care settings and reimbursement models, putting Lifesprk at the forefront of value-based care initiatives. With an award-winning culture committed to sparking lives, Lifesprk has a proven track record of consistent growth with solid financials and outcomes as well as experience scaling and integrating with a wide range of partners.

About Virgo

Virgo was founded in 2009 with the mission to build meaningful and innovative businesses that are leaders in their addressable markets. Virgo partners with Founder-led or Family-owned businesses, and targets companies undergoing industry or company-specific change. Virgo drives value-add initiatives post-investment with a focus on human capital transformation, business process enhancement and technology implementation. Virgo is an idea that there is a more creative, a more aligned, and a more human way to invest in and to build businesses together. The Firm has raised over $1.8 billion and completed 60 investments to date.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC

Star Collaborative/Lancesoft

Star Collaborative/Lancesoft

Star Collaborative

Cherry Tree advises Star Collaborative

“The Cherry Tree team was instrumental in advising Star Collaborative in the process of finding the right strategic partner for our long term. Their knowledge of the IT staffing industry and experience with people, operations, finance and the sale process helped us reach a great partnership with LanceSoft. In addition, our attorneys at Fafinski Mark & Johnson were excellent, as they patiently worked to serve our best interests along with the interests of all the parties involved.”

Ed Lefkow, Co-Founder and CEO
Star Collaborative, LLC

INDUSTRIES:
IT Staffing, IT Services, and Business Services.
DESCRIPTION:  
Provider of staffing and workforce management solutions.
LOCATION: 
Minneapolis, MN
TRANSACTION TYPE:
Private/Sellside

Situation

The owner’s of Star Collaborative entrusted the right partner to advance their company to the next level. Star Collaborative engaged Cherry Tree to advise them on strategic alternatives related to the sale of the company.

Cherry Tree’s Personalized Solution

Cherry Tree leveraged its IT Services experience in the process including introductions and discussions with a number of potential strategic acquirer’s and financial partners. Cherry Tree’s personalized process for soliciting proposals, negotiating terms and supporting the due diligence process resulted in successfully closing the transaction.

Outcome

The marketing process generated broad interest from a number of strategic and financial partners. The company was sold to LanceSoft, Inc, a nationally certified Minority Business Enterprise (MBE) providing highly scalable, cost-effective workforce solutions.

About

Star Collaborative, LLC is a leading provider of staffing and workforce management solutions. STAR has a long list of marquee clients located in the Twin Cities market and partners with some of the region’s largest enterprises.

LanceSoft, Inc. currently operates out of several locations in the US and Canada and has established itself as a pioneer in providing highly scalable, cost-effective workforce solutions to a diverse set of customers across various industries in the United States.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services. For more information, visit Cherry Tree & Associates.

Cherry Tree & Associates provides investment banking services through our FINRA-licensed broker dealer.

DISCLOSURES
FINRA
SIPC