Warburg Pincus, a leading global growth investor, today announced the signing of a definitive agreement to sell Procare Solutions, a leading provider of integrated child care center management software and payments processing, to Roper Technologies, Inc. (Nasdaq: ROP), for a total enterprise value of $1.86 billion. TA Associates, a leading global private equity firm, also sold its minority interest in Procare as part of the transaction.
Procare is a leading provider of center management software and integrated payment processing solutions to child care centers in the US, enabling administrators to maintain a core system of record and workflow for operational, compliance, staffing, billing, and accounting functions. Procare provides a broad, high-quality product suite that serves the unique and complex demands of more than 37,000 child care centers. Founded in 1992, Procare is a true end-to-end solution that supports customers of all sizes, from single-center operations to complex nationwide enterprises.
Warburg Pincus partnered with Procare over five years ago, working with the company to capitalize on its leading position in the child care industry through customer expansion, product innovation and strategic acquisitions. Procare’s significant growth was fueled by the combination of accelerating new center additions and continued adoption of new product modules such as its payments processing, family engagement and curriculum offerings.
“Our mission at Procare is to meet the complete management and family communication needs of all child care organizations, helping centers improve the education of young learners. I am proud of the successes and growth of our company and look forward to working with the Roper team to take us to the next level,” said JoAnn Kintzel, CEO of Procare. “I would also like to thank Warburg Pincus and TA for their support and partnership, resulting in this exciting new chapter for our company. Through our partnership, we have achieved incredible growth and had substantial impact on the child care industry, providing essential technology and automation tools for centers and families to navigate everything from addressing day-to-day needs to managing child care through a global pandemic.”
“It has been a privilege to support Procare through a period of transformative growth, partnering closely with the management team to build on its market leading position. We are proud of Procare’s financial success and the key role it plays in supporting the child care industry,” said Ash Somani, Managing Director, Warburg Pincus. “Over the course of our partnership, Procare focused on enhancing its suite of next-generation SaaS solutions, becoming an essential partner for digital adoption in child care centers across the country,” added Michael Ding, Principal, Warburg Pincus. “Procare is a strong example of our firm’s focus on growth and sector collaboration, combining the experience of our technology and financial services teams with the ultimate goal of building an industry leader with sustainable value. We wish JoAnn and the Procare team the best in their next chapter,” added Chandler Reedy, Managing Director, Co-Head of Business Services, Head of Strategic Investments, Warburg Pincus.
“We are thrilled by the growth trajectory Procare exhibited during our partnership and we look forward to watching Procare continue to expand and drive further momentum,” said Jason Mironov, Managing Director, TA.
The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals and customary closing conditions.
William Blair & Company, LLC served as lead financial advisor and Raymond James & Associates, Inc. served as an advisor to Warburg Pincus. Kirkland & Ellis LLP served as legal counsel to Warburg Pincus.
ABOUT WARBURG PINCUS
Warburg Pincus LLC is a leading global growth investor. The firm has more than $83 billion in assets under management. The firm’s active portfolio of more than 260 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Warburg Pincus is one of the most active growth investors in enterprise technology and cloud-based platforms and has invested more than $32 billion in technology companies since inception, such as Avalara, Clearwater Analytics, Crowdstrike, Infoblox, Internet Brands, Modernizing Medicine, Net Documents, and WebPT. Since its founding in 1966, Warburg Pincus has invested more than $116 billion in over 1,000 companies globally across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com. Follow us on LinkedIn.
ABOUT PROCARE SOLUTIONS
For more than 30 years, Procare Solutions has been helping early childhood educators simplify operations and create meaningful connections with families, so they can focus on what matters most – the children in their care. From registration, attendance tracking, staff management and lesson planning to family engagement, tuition collection and reporting, we help ease the challenges faced of running a child care business. Our dedicated team of support professionals also make it easy to get up and running quickly and answer questions along the way. That’s why over 37,000 customers choose Procare. We are proud to be number one in child care management software. For more information, visit ProcareSoftware.com.
ABOUT TA ASSOCIATES
TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries—technology, healthcare, financial services, consumer and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.
