LOS ANGELES, Jan. 29, 2019 (GLOBE NEWSWIRE) -- Vicente Capital Partners (“Vicente Capital” or “VCP”), a Los Angeles-based private equity firm, today announced the sale of Intellectual Technology, Inc. (“ITI” or the “Company”) to Arlington Capital Partners (“Arlington”). Vicente Capital and management retained a minority interest in the Company. Vicente Capital acquired ITI in November 2012 and, while under its control, ITI’s revenues increased approximately 3x and EBITDA increased approximately 4x.
Headquartered in Carlsbad, California, ITI has over 25 years of experience developing solutions for motor vehicle agencies, providing DMV software used throughout North America to increase the speed, visibility, and security of motor vehicle transactions. ITI’s technologies offer a fully integrated department of motor vehicles solution suite, including software and equipment that can be used to track vehicle registrations, manage the production of and inventory for license plates and driver’s licenses, and administer skills and knowledge tests to DMV customers. During VCP’s investment control, ITI increased its blue-chip customer base from 12 U.S. states to 29 U.S. states and five Canadian provinces. The Company also increased the number of installed self-service kiosks, its main business line, from 81 kiosks in two states to approximately 400 kiosks in 11 states.
Jay Ferguson, a Managing Partner at Vicente Capital, said, “It has been a pleasure to work alongside the ITI management team over the last six years to significantly expand its customer set, solution offerings, and career opportunities for its employees. ITI is now a disruptor in a market ripe for innovation, and with additional financial backing and guidance from Arlington, our new partners, ITI is well-positioned to further strengthen its role as a leading technology provider to DMVs and their customers.”
“We are excited to partner with Vicente and the ITI management team to further increase the speed and efficiency of DMV services,” Michael Lustbader, a Managing Partner at Arlington, said. "Through approximately 400 self-service kiosks in 11 states, ITI is transforming the interaction between government and their constituents as ITI’s kiosks become the preferred constituent portal. ITI’s highly recurring business model and public sector customer set is a perfect fit with Arlington’s investment mandate.”
Drew Nicholson, President of ITI, said, “We are a company dedicated to operational efficiency, and our collective vision for current and prospective customers is to leverage technology to address the repetitive and predictable tasks that DMVs must perform on a daily basis so that they can focus on complicated, more nuanced constituent interactions. With a renewed focus on organic and inorganic investments, paired with Arlington’s experience investing in the government technology market, our organization is primed for tremendous growth in the coming years.”
“State and local governments are becoming more innovative in how they utilize technology to improve the constituent experience, maintain compliance with federal REAL ID legislation, manage revenues, and reduce waste, fraud and abuse,” Craig Litchin, CEO of ITI, said. “Vicente Capital helped us build a strong foundation and changed our trajectory. With Arlington’s backing and financial support, we are excited to further expand our solution set across our installed base, but also remain the agile, customer-centric company that has led to our success to date.”
Piper Jaffray served as exclusive financial advisor to Vicente Capital and ITI in connection with the transaction. Mitchell Silberberg & Knupp LLP provided legal services to Vicente Capital and ITI.
About Vicente Capital Partners
Vicente Capital Partners is a private equity firm specializing in both non-control and control investments in growth businesses that have annual revenues between $10 million and $50 million. The firm's investment professionals have a long and successful track record of partnering with management teams to create and realize value across a number of different industries including: Business Services (technology-enabled and Internet services, outsourced services, telecom services); Consumer Services (healthcare services, residential delivery, education); and Specialty Manufacturing (aerospace & defense, environmental products, networking/telecom equipment).
Current investments include: SMT (SportsMedia Technologies), MedBridge Healthcare, Campus Explorer, and Global LT. www.vicentecapital.com
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-area private equity firm that has managed $2.2 billion of committed capital via four investment funds. Arlington focuses on middle market investment opportunities in growth industries, including: government services and technology, aerospace/defense, healthcare, and business services and software. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company's position as leading competitors in their field. www.arlingtoncap.com
About Intellectual Technologies, Inc.
ITI is the leading provider of unique DMV on Demand solutions that help motor vehicle agencies throughout North America increase speed, visibility and security of motor vehicle transactions. Whether services are delivered at, or behind the counter, in fulfillment centers, via self-service, or on a mobile device, ITI’s DMV on Demand software provides motor vehicle agencies with the ability to service customers wherever they are located. www1.iti4dmv.com/
Contact: Jay Ferguson and David Casares Vicente Capital Partners Offices: (310) 826-2255 www.vicentecapital.com SOURCE: Vicente Capital Partners
