MasteryPrep, CDR Software transactions top November M&A Activity

By: G.F. Gay Le Breton and Alexander Aguilar December 21, 2022

https://bit.ly/Chaffe-CB-Dec2022

Two Louisiana technology companies that are meeting challenges accelerated by the COVID pandemic sold in November. One is focused on education and the other in supply chain management.

Baton Rouge-based Ring Publications LLC — MasteryPrep was acquired by Achieve Partners, a private equity firm focused on the digital transformation of education. MasteryPrep provides assessment and professional development services for students, helping them prepare for SAT, ACT, TSIA-2 and WorkKeys tests. Its model is designed around access and affordability to serve low-income schools and districts better. Founded in Baton Rouge in 2013, the company currently serves over 500 school districts across the U.S.

Achieve Partners’ acquisition occurred as an increasing number of states are requiring students to take end-of-course exams in order to graduate. The requirement is an attempt to improve school accountability metrics by increasing college readiness. Craig Gehring, CEO and founder of MasteryPrep, saw an opportunity to help those in under resourced communities meet these criteria and increase graduation rates. “Achieve’s backing will enable us to accelerate that mission at a time when new approaches to boost student achievement have never been more important,” Gehrig said.

Achieve Partners invests in technologies and novel business models for learning to create new pathways to economic opportunity. Their investments span education in K-12, higher education and workforce development.

In the supply chain management space, Covington-based CDR Software sold to FOG Software Group, a division of Vela Software. CDR provides fully integrated software solutions designed for distribution companies in the convenience products industry. It offers turnkey solutions incorporating software, hardware, support and professional services.

CDR will operate as an independent division of FOG Software under its Supply Chain and Logistics portfolio. FOG plans to grow CDR’s footprint in that space.  Former owners, Jebb Maginnis and Harland Williams, will continue with the company to develop and support CDR’s suite of software solutions.

Maginnis, president of CDR, noted that FOG Software has extensive experience in the distribution software industry, is dedicated to customer service and focused on advancing technology in the supply chain. The ultimate parent of FOG Software and Vela is Constellation Software, a TSX-listed publicly traded company.

In other news, Gordon Technologies LLC, located in Scott, Louisiana, announced that its shareholders sold 25% of their equity ownership in an all cash deal to Alpha Dhabi Holding for $164 million, in what was described as a partial liquidity event.

Gordon Technologies is an independent provider of measurement while drilling (MWD) technology to the directional drilling sector of the U.S. oil and gas industry.  MWD allows measurements to be sent to the surface continuously while a hole is being drilled.

Gordon Technologies’ majority shareholder was Pelican Energy Partners, an oil field services focused private equity firm. Pelican provided growth capital to Gordon in 2017, which helped accelerate Gordon’s MWD fleet from less than 20 kits to over 150 kits now.

“This transaction reaffirms our strong commitment to growing and driving value across our portfolio through investment in innovation and technology, a core tenet of our growth strategy at Alpha Dhabi,“ said Hamad Al Ameri, chief executive and managing director of Alpha Dhabi.

G.F. Gay Le Breton is managing director for Chaffe & Associates Inc. responsible for the merger and acquisition activities of the firm. Alexander Aguilar is a financial analyst with the firm.

Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC. For more information, visit http://chaffe-associates.com.