GTCR, a leading private equity firm, announced today that it has acquired Innovative Systems, a platform of mission-critical enterprise software serving regional broadband providers nationwide. The Company was purchased from Alpine Investors, a people-driven private equity firm.
Acquisition Overview and Deal Terms
As part of the Leaders Strategy™ investment approach, GTCR is partnering with technology executive Scott Alcott, who has joined Innovative Systems as CEO. He will lead the company through its next phase of growth.
Innovative Systems’ Role in Broadband
Founded in 1998, Innovative Systems is headquartered in Mitchell, South Dakota. The company delivers an integrated suite of operating and billing software systems (OSS/BSS) as well as payments and bill processing.
The platform creates an end-to-end operational and billing experience. It removes the cost and complexity of integrating multiple point solutions. In addition, the company provides 24/7 customer service to broadband service providers, utilities, cooperatives, and municipalities across the U.S.
Leadership Transition: Scott Alcott as CEO
Mr. Alcott has more than three decades of technology industry experience. Most recently, he served as Chief Information Officer of Comcast. In that role, he led the company’s digital transformation and oversaw infrastructure, operations, software development, systems engineering, and lifecycle management.
Previously, he spent 10 years at Belgian telecommunications company Belgacom Group (now Proximus Group). During that period, he held a variety of operational leadership positions. As a result, he helped transform the business into a recognized technology leader in broadband, voice, video, and mobile services.
GTCR’s Investment Strategy
GTCR’s investment in Innovative Systems builds on the firm’s track record in vertical market software and telecom infrastructure. Past investments include Lexipol, Once For All, Point Broadband, Clearwave Fiber, and Mega Broadband Investments. The firm has also invested in payments technology companies. For example, GTCR has backed Worldpay, Paya, and RevSpring.
“Innovative Systems’ differentiated, platform-based solution sets it apart from competitors, providing a seamless operational experience for rural broadband and utility customers,” said Stephen Jeschke, Managing Director at GTCR. “We look forward to leveraging GTCR’s expertise across software, telecom, and payments, working with Scott and the senior management team to expand the company both organically and through M&A.”
“I am excited to join the talented team at Innovative Systems and continue to enhance an already mission-critical solution,” said Mr. Alcott. “In partnering with GTCR, we can invest in technology and growth. Together, we can bring these solutions to more customers nationwide.”
“Innovative Systems is exactly the type of high-quality vertical software where integrated payments can deliver significant value,” said KJ McConnell, Managing Director at GTCR. “We look forward to continuing to invest in the company’s leading payment solutions.”
“We are proud of the success Innovative Systems achieved with Alpine. Moreover, we look forward to partnering with Scott and the GTCR team as we continue to evolve our offering,” said Austin Monahan, President of Innovative Systems.
Advisors
Stifel, Stephens Inc. and Shea & Company served as financial advisors to GTCR. Kirkland & Ellis LLP served as legal advisor to GTCR. Lincoln International acted as financial advisor and Goodwin as legal advisor to Alpine Investors and Innovative Systems.
