Two private equity firms take control of U.S. software company Precisely in $3.5 billion deal: source

(Reuters) - Private equity firms Clearlake Capital Group and TA Associates have acquired control of U.S. software company Precisely from another private equity firm in a $3.5 billion deal, a source familiar with the matter told Reuters.

The seller, Centerbridge Partners, will remain a minority investor, the source said late on Tuesday.

It was not immediately known how much Clearlake and TA Associates will each own in Precisely, nor how the deal will be funded.

The Wall Street Journal had reported earlier that TA Associates and Clearlake, which was already a minority investor in Precisely, had agreed to back Precisely, whose legal name is Syncsort Inc, and become its new owners.

Centerbridge Partners bought enterprise software companies Syncsort and Vision Solutions Inc from Clearlake Capital for $1.26 billion in 2017. Clearlake retained a minority interest in the combined business after that deal had closed.

Precisely’s revenue reached about $600 million last year, and is expected to rise to $650 million to $700 million this year, the Wall Street Journal reported on Tuesday, citing Chief Executive Josh Rogers.

Precisely has about 12,000 customers including major banks, large telecommunications companies, healthcare and retail businesses, and the government, according to Rogers.

In 2019, e-commerce solutions firm Pitney Bowes Inc sold its software solutions business to Precisely for $700 million in an all-cash deal.

Reporting by Kanishka Singh in Bengaluru; Editing by Muralikumar Anantharaman