Alston & Bird client The Carlyle Group, a global alternative asset manager with $176 billion of assets under management, has agreed to invest in ProKarma, a high-growth IT services firm focused on “Next-Gen” services that enable innovations around burgeoning technologies such as Digital, Analytics, Cloud, Big Data, and DevOps.
The transaction – which will see Endeavour Capital, ProKarma’s current financial partner, exit its stake – is expected to close on October 31, 2016, subject to regulatory approvals. Terms of the transaction were not announced.
Equity for the investment comes from Carlyle Partners VI, a $13 billion U.S. buyout fund that is part of Carlyle’s Corporate Private Equity segment, the oldest and largest of the firm’s four business segments, with assets under management of $58 billion as of June 30, 2016.
Founded in 2004, ProKarma is headquartered in Omaha, NE, and Portland, OR, with 2,400 employees across 21 global offices. The firm serves more than 150 customers from a range of industries, including technology, media and telecom; healthcare; transportation; industrial; financial and consumer.
The transaction continues Carlyle’s ongoing investment in the technology and services space as reflected in a number of recent deals, including Carlyle’s 2016 acquisition of Veritas and its support of CommScope’s $3 billion carve-out acquisition of TE Connectivity’s telecom, enterprise and wireless businesses in 2015. Alston & Bird served as counsel to Carlyle on the Veritas acquisition and adviser to CommScope on the TE Connectivity transaction.
Advising The Carlyle Group is an Alston & Bird team led by partner Mark Kelly, assisted by partner William Snyder, associates Ben Weadon and Val Delp and staff attorney Lauren Huddleston (Private Equity); partners John Baron (Tax), Mike Stevens and Blake MacKay (Employee Benefits & Executive Compensation); partner Brett Coburn and senior associate Isabella Lee (Labor & Employment); partner Jason Waite and associate Lian Yang (International Trade & Regulatory); partner Chris Gegg (Intellectual Property) and counsel Helen Christakos (Technology).