Marlin in $139m software deal

The Gores Group spin-out is deploying capital from the $650m turnaround fund it closed last year.

Marlin Equity Partners has entered into an agreement to acquire the outstanding shares of Phoenix Technologies, a software company based in Silicon Valley. Marlin will pay $3.85 per share, or roughly $139 million in cash for the shares. 
 
The company specialises in “core systems software products, services and embedded technologies,” according to its web site.

The purchase price represents a premium of approximately 27 percent over Phoenix’s closing share price of $3.02 as of 17 August, and a premium of roughly 25 percent over Phoenix’s average closing share price for the 30 trading days ending 17 August.

In December 2009, Los-Angeles-based Marlin held $650 million final close on its third turnaround fund, pushing its capital under management past the $1 billion mark. The firm raised Fund III in less than three months and was heavily oversubscribed, surpassing its $450 million target. Marlin used Probitas Partners as a placement agent for both Fund II and its 2007 predecessor fund.

Marlin typically focuses on businesses with revenues ranging from $20 million to $1 billion, in sectors including technology, healthcare, consumer, services and manufacturing. The firm was founded in 2005 by David McGovern, who was previously head of M&A at Gores Technology Group and an investment committee member at Gores Capital Partners.