HGGC buys Serena Software from Silver Lake

The acquisition marks HGGC’s first from its second fund, which is targeting $1bn.

HGGC has bought information technology business Serena Software from Silver Lake Partners, according to a statement.

San Mateo, California- based Serena provides information technology applications for the aerospace and defense, business services, communications and media, government and insurance industries. HGGC declined to disclose a return multiple for the deal, but a source familiar with the matter put the value of the transaction at about $450 million. Upon closing of the transaction, Serena founder Doug Troxel will retain his 30 percent stake in the company, which will increase when he commits additional capital. Troxel will also remain on the Board of Directors, according to the statement.

Serena is HGGC’s first investment from its HGGC Fund II, which launched earlier this year and is targeting $1 billion of outside capital, according to Private Equity International’s Research and Analytics division. HGGC’s prior fund, Huntsman Gay Capital Partners Fund I closed on $1.1 billion in 2009. HGGC, formerly known as Huntsman Gay Global Capital, is based in Palo Alta, California.

“Together, we are committed to providing the capital and resources to enable Serena Software to invest in areas that deliver value to customers and fuel growth…as well as to make strategic acquisitions that can help scale the business efficiently and penetrate new markets,” Rich Lawson, chief executive officer and managing partner of HGGC, said in the statement. Lawson was promoted to CEO of HGGC last August.

Silver Lake took Serena private in 2006 for $1.2 billion, according to the company’s website. The firm was unavailable for comment at press time.

Serena is HGGC’s fifth technology services platform investment. Other investments in the sector include ecommerce company hybris Software and library systems software Innovative Interfaces. HGGC invests between $25 million and $100 million in companies with revenues of at least $100 million, according to its website. So far in 2014, HGCC has been involved in more than $1 billion of transactions while in market with its second fund.  The firm has also been involved in $3 billion of exits in last the last 18 months, according to a source familiar with the matter.

Earlier this month, Silver Lake and BC Partners agreed to sell healthcare services business MultiPlan to a group led by Starr Investment Holdings and Partners Group. Terms of the sale were not disclosed, but the company is reportedly worth about $4.4 billion. BC and Silver Lake bought the company for $3.1 billion in 2010.