New Mountain Capital to Partner with Sparta Systems

Sparta Systems Inc., a global leader in quality management system (QMS) software, is partnering with New Mountain Capital LLC, a growth-oriented investment firm headquartered in New York, N.Y. New Mountain will acquire Sparta from Thoma Bravo LLC, a private equity investment firm; but the company will retain a minority stake in Sparta.

Financial details were not disclosed. The transaction is expected to close in the third quarter of 2017, subject to usual and customary closing conditions and regulatory approvals.
 
New Mountain, which manages more than $19 billion in assets, seeks to acquire the highest quality leaders in carefully selected growth industries, and partner with management in continued business-building. The firm identified Sparta through a proactive focus on life sciences, with a particular focus on software that enables risk management, compliance, product safety and supply chain integrity. New Mountain plans to provide Sparta with significant financial and strategic resources to support future growth initiatives.
 
“We have admired Sparta Systems for quite some time and are excited to begin our partnership,” said Pete Masucci, managing director of New Mountain. “Sparta is the market leader with strong customer relationships in a large and fast growing industry. We look forward to working with Eileen and her management team to further enhance Sparta’s track record of innovation, product development and market expansion.”
 
Founded in 1994, Sparta Systems currently has close to 1 million users in more than 30 countries. The company maintains an extensive customer base in many highly-regulated industries, which includes 45 of the top 50 pharmaceutical companies, 13 of the top 15 medical device companies, and leading consumer products and discrete manufacturing companies.
 
Sparta’s product portfolio of market leading cloud and on-premise software enables manufacturers and suppliers to automate and connect quality management, regulatory management and document management processes to create safer products, improve operational visibility, ensure regulatory compliance, and improve profits. The value of Sparta’s solutions is amplified as more manufacturers and suppliers leverage the technology to proactively address challenges around global regulations, supply chain complexity, business process efficiency, speed-to-market and competition. These companies become members in what Sparta terms the Quality Business Network.
 
“We believe that New Mountain Capital is the ideal partner to support us in the next phase of our growth trajectory by investing in continuous product innovation and industry expansion,” said Eileen Martinson, CEO of Sparta Systems. “I’m confident that this will enable us to advance our vision of a Quality Business Network through both organic and inorganic growth initiatives. Furthermore, I am proud of what we have achieved with Thoma Bravo over the past three years and am extremely pleased they will remain a partner on our new journey.”
 
“Thoma Bravo is proud of our association with Sparta and the growth we’ve been able to accomplish together over the past three years. We are confident that the company is positioned for further success,” said Scott Crabill, a managing partner at Thoma Bravo. “We look forward to continuing our relationship with Eileen and the rest of the Sparta team as a minority investor.”
 
Lazard served as exclusive financial advisor to Sparta and Kirkland & Ellis LLP served as legal counsel to Thoma Bravo and Sparta. William Blair & Company served as financial advisor to New Mountain Capital. Willkie Farr & Gallagher LLP provided legal counsel to New Mountain Capital.

Founded in 1994, Sparta is the world’s premier provider of cloud and on-premise quality management software. The company offers solutions, analytics, and expertise that speed up quality and compliance. Its QMS solutions help lower risk, increase efficiency, and keep consumers safe while allowing manufacturers, suppliers, and distributors to collaborate in a seamless and integrated environment. Sparta is headquartered in Hamilton N.J, with offices across Europe and Asia. The company supports close to 1 million users across 700+ implementations, in more than 30 countries.