volaris group’s role in corporate carve-outs€¦ · overview reasons for corporate carve-outs...
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VOLARIS GROUP’S ROLE IN CORPORATE CARVE-OUTS
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 2
Table of Contents
Overview ..............................................................................................................................
Wynne Carve-outs> Strategic Mergers for Perpetual Growth ...............................................................
Agri Carve-outs> Accelerated scalability through the application of best practices ..............
GreenRide Carve-outs > Revising corporate business structure to augment existing services ........
3–4
5–7
8–10
11–14
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 3
Overview
Reasons for corporate carve-outs
Oftentimes, businesses resort to a corporate carve-
out in order to remedy mismanagement or an unsound
fit in an organization. The challenge that these
businesses face, is finding a strategic acquirer who
could provide the resources required for long term
sustainability and growth.
Since, Vertical Market Software companies have
specific needs when they belong to a parent company
who is not a software specialist, they are often
unable to perform to their potential. They may be
lacking the resources to scale the business further,
and consequently stunt the businesses’ growth.
Alternatively, the resources may be available but
the lack of present industry leadership results in
the misuse of such tools. In any case, Volaris offers
companies looking to carve out software businesses
both the resources and leadership they need to scale
the business further and position it for long-term
sustainable success.
Volaris Group has unparalleled experience in successfully acquiring, managing and building software companies.”
—Tony Gale, Director & Integration Manager of GreenRide
“
Strategic and Seamless carve-outs
With dozens of closed acquisitions over 20 core
markets, Volaris Group’s ability to structure strategic
transactions allows software carve out’s the
opportunity for a safe and permanent home. Our buy-
and-hold acquisition philosophy provides our portfolio
businesses with a solution that fits their long-term
goals. Furthermore, since Volaris operates on a highly
decentralized business model, our companies are
able to continue operating as an autonomous entity
with access to resources and expertise. Businesses
like GreenRide are able to reap the benefits of having
a parent company with intimate knowledge of best
practices required to lead VMS companies to success.
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 4
Post-acquisition Success
After joining Volaris Group’s portfolio of businesses,
companies have access to knowledge sharing through
quarterly strategy meetings, annual academies, and
functional summits. These opportunities allow business
leaders to exchange best business practices with
industry leaders of other VMS businesses. By applying
key metrics and best industry practices specific to VMS
companies, businesses are able to grow organically and
refine their day-to-day operations.
As part of Constellation Software Inc., Volaris Group has
access to any resources required to make any business
goal a reality. By working collaboratively with owner
operators to fulfill their personal and professional goals,
Volaris Group positions businesses for perpetual growth.
Our buy-and-hold acquisition approach allows you to
make the best long term decisions for your business.
W Y NNE
Strategic Mergers for Perpetual Growth
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 6
Founded in 1980, Wynne Systems is a leading provider of
mission critical enterprise resource planning (ERP) solutions
for rental equipment and construction companies. After
several successful years of operation, Wynne Systems decided
to merge with their direct competitor, United Rentals, in order
to achieve a greater market share.
Shortly after the close of the transaction, Wynne Systems
was hampered in its ability to further scale its business as
other equipment rental companies where wary of buying
software from a company owned by their largest competitor.
Furthermore, since United Rentals was not a software
company themselves, Wynne failed to apply certain best
industry practices to their business.
W Y NNE:
STRATEGIC MERGERS FOR PERPETUAL GROWTH
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 7
Volaris Group sought to expand and strengthen its
rental management software vertical, and recognized
Wynne Systems as a strategic fit. In 2012, Volaris
approached United Rentals about the potential acquisition
of Wynne Systems. Both parties where able to reap the
benefits of the transaction as Volaris was able to expand its
market presence in the rental management vertical, and
Wynne Systems now had a parent company with intimate
knowledge of vertical market software companies.
Shortly after the close of the transaction, General Manager
of Wynne Systems, John Bureau, recognized the value in
being able to share best practice knowledge with hundreds
of business leaders in over twenty core vertical markets.
Through quarterly strategy meetings, annual academies,
and functional summits Volaris ensures their portfolio
businesses have the opportunity to learn from others and
grow organically. Furthermore, these opportunities foster a
sense of community amongst the verticals as well as provide
a unique space for employees to network and develop skills.
Bureau and his team continue to grow Wynne Systems
autonomously around the globe, as they now have access to
any resources necessary to further scale their business.
From initially meeting the folks
from Volaris prior to the acquisition,
through their acquisition, through
the integration process there was
a lot of respect, a lot of intelligent
people. I learned a great deal of
information, I probably learned
more in 1 year than I did in 15
years running the organization.”
At the end of the day, we kept our
organization completely intact!”
—John Bureau, GM of Wynne Systems
“
AGRIS:
Accelerated scalability through the application of best practices
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 9
Established in 1978, AGRIS Inc. is a leading software provider for
agriculture markets. After two decades of independent trading the
business was acquired by John Deere. Under Deere’s ownership,
AGRIS developed many valuable connections in the industry.
However, as a specialist vertical market software business,
AGRIS struggled to find a natural home within John Deere’s core,
prestige manufacturing business. With the long term success of
AGRIS and its employees in mind, John Deere sought a strategic
acquirer who would grow the business autonomously.
The management at Deere recognized Cultura Technologies as
an industry leader in operating and growing agri-food focused
software businesses and had been in contact to discuss the
possibility of an acquisition. They were attracted by Cultura’s buy-
and-hold acquisition philosophy as it would mean investment in
the company and its employees. Cultura Technologies was able to
structure a strategic transaction that fulfilled the terms laid out
by John Deere. AGRIS was able to find a parent company that was
AGRIS:
ACCELERATED SCALABILITY THROUGH THE APPLICATION OF BEST PRACTICES
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 10
With Cultura, we are able to
achieve much greater levels
of success by leveraging their
expertise and experience.”
—Lyle Hartz, Director of Sales and
Marketing at AGRIS Inc.“dedicated to the long term success of the companies
they acquire and had expertise in vertical market
software. Cultura was able to capitalize on
the valuable connections developed by AGRIS under
Deere’s ownership.
The parent company of Cultura Technologies,
Volaris Group, operates on a decentralized business
model allowing acquired businesses to remain
autonomous. As a result AGRIS has been able to
thrive as their employees have a renewed sense of
empowerment towards running the business.
Joining Cultura has enabled AGRIS to thrive and further
scale their business. Since the carve-out, AGRIS has
been able to apply Cultura’s proprietary metrics and
knowledge of best industry practices to increase
revenue by 70%!
Cultura and Volaris Group were able to provide support and guidance, but ultimately left it up to us to make our own decisions.”
—Lyle Hartz, Director of Sales and Marketing at AGRIS Inc.
“
GREENRIDE:
Revising corporate business structure to augment existing services
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 12
As an international provider of web-based rideshare management software,
Greenride grew rapidly as a SaaS business as a part of an engineering firm
soon after GreenRide was created in 2004. In just a few years, GreenRide
grew to nearly $1 million in sales but ran into challenges scaling and
maintaining multiple versions of their customized solution. As a result,
supporting customers and retaining a leadership role in the market became
difficult. The executive and management team for the engineering firm and
GreenRide realized these challenges would not be overcome under the
current corporate business structure. Thus, Tony was tasked with finding a
strategic acquirer who had the resources and expertise in developing and
maintaining Software solutions.
After receiving several offers, TripSpark was selected as the buyer of choice
as they were the best strategic fit. TripSpark, a subsidiary of Volaris Group,
had extensive expertise in the transportation software industry and granted
GreenRide the opportunity to share best business practices with other
companies in related and other software verticals. Furthermore, TripSpark
had the resources to support GreenRide, its employees, as well as its
clients to ensure the company proceeded to grow and scale further.
GREENRIDE:
REVISING CORPORATE BUSINESS STRUCTURE TO AUGMENT EXISTING SERVICES
TripSpark has unparalleled experience
in successfully acquiring, managing and
building software companies.”
—Tony Gale, Director & Integration Manager of GreenRide“
volarisgroup.com5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408 14
The acquisition was strategic for both parties, as Volaris
was able to strengthen its market presence in the
transportation vertical market, and GreenRide received
the benefit of having a safe and permanent home which
allowed for sustainable growth.
Volaris Group̀ s decentralized business model allows
GreenRide to continue operating the company as they
see fit. GreenRide retained its employees and customers
as the acquisition its operations. With the resources and
support of Volaris Group, GreenRide continues to scale
their solution.
As a result of the carve-out, GreenRide management
was able to learn from and share best industry practices
with hundreds of business leaders in over twenty
core markets. Furthermore, Tony Gale’s professional
responsibilities have expanded which has presented him
with new current and future opportunities.
The right decision was made
in selling the business to
TripSpark, not just for the buyer
and seller but also for our
customers and employees.“
—Tony Gale, Director & Integration Manager of GreenRide
“
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