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Silver Lake Announces Strategic Investment in Quorum Business Solutions

Companies mentioned in this article: Silver Lake

MENLO PARK, Calif. and HOUSTON, July 14, 2014 /PRNewswire/ -- Silver Lake Partners, the global leader in technology investing, and Silver Lake Kraftwerk, the firm's energy and resource innovation strategy, announced today that they have agreed to acquire Quorum Business Solutions (Quorum) from funds managed by The Carlyle Group's middle-market buyout team and Riverstone Holdings. Key Quorum management will also participate as equity partners in the new ownership structure. Quorum is the leading provider of software and services to manage operational, administrative, financial and transactional business processes for energy, renewables and natural resource industry segments.

The deal marks the first joint investment between Silver Lake Partners and Silver Lake Kraftwerk, as well as Partners' first investment in the technology-enabled sectors of the oil and gas industry. Silver Lake's capital investment will support Quorum's continued growth and market leadership, including strategic acquisitions to enhance its functional capabilities and scope of products and services. Terms of the transaction were not disclosed.

Quorum provides software - including financial accounting, transaction systems, land & property management and trading & risk management, among others - for a diverse range of companies operating within the oil and gas supply chain, including the upstream, midstream and pipeline verticals. Since the company's inception in 1998, Quorum has experienced continued growth through the deployment of efficient, cost effective solutions that help businesses meet vital performance goals. Quorum has completed over 975 successful energy information technology projects and provides ongoing support to over 185 energy industry clients.

The rapid growth of Quorum's business has been accompanied by a significant rise in U.S. oil and gas production. During the current 'Shale Revolution,' the United States has recorded a 25 percent rise in natural gas production since 2010 and has overtaken Russia as the world's largest producer of natural gas. According to the International Energy Agency, the U.S. also became the largest producer of crude oil and natural gas liquids earlier this year, surpassing Saudi Arabia.

"Quorum has become a critical player in the energy market, where technology is playing an increasingly vital role," said Bryce Lee, a Managing Director at Silver Lake Kraftwerk. "Quorum has built a leadership position through its differentiated, mission-critical software and relentless focus on treating clients as partners, whether building the new functionality they desire or providing outstanding support. We look forward to working with management to maintain its customer-centric culture and continuing an aggressive, growth-oriented business plan, including potential investments in new product capabilities and M&A."

"We are very excited to announce our new business alliance with Silver Lake, a distinguished leader in technology and energy investing," said Perry Turbes, President and Chief Executive Officer of Quorum. "Their global presence, technology expertise and value creation capabilities will be an invaluable resource in the coming years. We look forward to working with Silver Lake to further accelerate our growth, enhance Quorum's value proposition to its clients and help us achieve our long-term strategic vision."

The transaction is expected to close following the satisfaction of customary closing conditions and approvals.

The company was advised in the transaction by Credit Suisse, Hogan Lovells US LLP and Latham & Watkins LLP. Silver Lake was advised by Kirkland & Ellis LLP. RBC Capital Markets is providing debt financing for the transaction.

About Quorum Business Solutions, Inc.
Quorum Business Solutions, Inc. develops, implements, and supports software for the energy industry. Quorum offers an integrated suite of business applications for companies that produce, gather, process, transport, store, distribute, and market crude oil, natural gas, NGLs, LNG, and wind-generated power. The Quorum suite includes software that manages operational, administrative, financial, and transactional business processes for energy. Products within the suite offer inherent integration to support data flow across the value chain, and are also capable of operating stand-alone. Founded in 1998, Quorum employs over 400 staff operating out of Houston, Dallas, and Calgary. Quorum has ongoing relationships with over 185 clients, comprised of super-majors, independents, operators, and non-operating owners, including 25 Fortune 500 Companies. Throughout its 16 year history, Quorum has successfully completed over 975 software solution deployments. For more information on Quorum, please visit http://www.qbsol.com.

About Silver Lake
Silver Lake is a global leader in private investments in technology and technology-enabled industries. Silver Lake invests with the strategic and operational insights of an experienced industry participant. The firm has approximately 110 investment and value creation professionals located in New York, Menlo Park, San Mateo, London, Hong Kong, Shanghai and Tokyo and manages more than $23 billion in combined assets under management. The Silver Lake Partners portfolio includes or has included technology and technology-enabled industry leaders such as Alibaba, Allyes, Ameritrade, Avago, Business Objects, Dell, Flextronics, Gartner, Gerson Lehrman Group, Global Blue, Go Daddy, Instinet, Intelsat, Interactive Data Corporation, MCI, Mercury Payment Systems, MultiPlan, the NASDAQ OMX Group, NetScout, NXP, Sabre, Seagate Technology, Skype, Spreadtrum, SunGard Data Systems, UGS, Vantage Data Centers, Virtu and William Morris Endeavor. For more information about Silver Lake and its entire portfolio, please visit www.silverlake.com.

About Silver Lake Kraftwerk
Silver Lake Kraftwerk focuses on providing growth capital to technology innovators with established business models in the energy and resource sectors. Silver Lake Kraftwerk targets companies globally that leverage technology and business model innovation to improve energy efficiency, reduce waste and emissions, harness renewable energy, and more efficiently produce, transport, and use natural resources, among other applications. For more information about Silver Lake Kraftwerk and its entire portfolio, please visit www.silverlake.com.

Contacts

Quorum
Cleve Hogarth
cleve_hogarth@qbsol.com
713.260.5928

Silver Lake
Patricia Graue
silverlake@brunswickgroup.com
415.671.7676

SOURCE Silver Lake