Gemcom sells out to venture capitalists

Gemcom Software International, which claims to be “the largest global supplier of specialised mining productivity solutions,” has signed a definitive agreement to be acquired by JMI Equity and The Carlyle Group, in an all cash transaction. “We are pleased to announce this transaction, which represents the culmination of a thorough review of our standalone plan and strategic alternatives,” stated Burke Corbet, Chairman of the Gemcom Board of Directors. “The Board has concluded that this transaction is in the best interests of our shareholders, allowing them to realise the value of their investments at an all time high price.”

JMI Equity is a private equity firm exclusively focused on investments in growing software and business services companies throughout North America with approximately $1.3 billion of committed capital under management. The Carlyle Group is a global private equity firm with $81.1 billion under management and operations in 21 countries.

“Our strategy at JMI is to focus on software and business services companies with proven business models and to partner with their management teams to build exceptional companies,” said Bob Smith, general partner of JMI Equity. “We are particularly attracted to Gemcom because of its proven leadership team and the execution capabilities of its global staff.  We believe that through continued investment in its technology, people and deep
customer relationships, Gemcom will continue to build on its market leadership position in the mining market. This is a unique and exciting opportunity to be part of Gemcom’s vision to solve their customers’ business issues through technology that will transform the mining industry.”

“Gemcom is an ideal fit with our investment strategy – it is a high-growth company with leading market share, providing compelling solutions to the global mining sector,” stated Brooke Coburn, Managing Director and Head of Carlyle Venture & Growth Partners, the US venture and growth capital arm of The Carlyle Group. “We look forward to working with the Gemcom management team to support expansion of their market-leading mining software
solutions to existing and future customers in all major global markets.”

“For more than 22 years, Gemcom has been delivering innovative solutions to improve mining productivity, which has enabled us to attain our leadership position,” said Rick Moignard, President and CEO of Gemcom Software. “JMI and Carlyle have a strong track record of growing technology companies and I look forward to working with them in accelerating our vision to improve how the mining industry uses software and best practises to address their key challenges.”

Pending the receipt of shareholder approval, the transaction is expected to be completed in July.