SDR Ventures Advises MCAD Technologies on Acquisition by CATI
SDR Ventures, a nationally recognized investment banking firm for privately held businesses, is pleased to announce that MCAD Technologies, Inc. (“MCAD”) has been acquired by Computer Aided Technology (“CATI”), a portfolio company of Mangrove Equity Partners. SDR served as the exclusive sell-side advisor to MCAD throughout the transaction process.
Based in Denver, MCAD specializes in sales, support and training of engineering productivity tools including 3D solid modeling, design validation and product data management. MCAD is a SolidWorks Premier Partner and Stratasys 3D Printer Preferred Reseller and has been serving product-development professionals in the Rocky Mountain Region since 1989. MCAD selected SDR Ventures to serve as its sell-side advisor to help it navigate a potential sale to CATI.
“The comparable cultures, operations and visions of CATI and MCAD were a strong indication that this business combination would result in a market-leading software company serving the product-development community,” said Sue Evans, President of MCAD. “However, I don’t think we realized just how much complexity would be involved in the transaction process, from negotiating and agreeing to terms, to diligence, and finally closing. Fortunately, SDR’s team was there to guide us. As a solutions-minded intermediary, SDR was able to apply its experience with closely held business transactions with its expertise in the software and technology sector to help us avoid pitfalls, maximize shareholder value and position management to be partners from the start.”
“We also wanted to make sure that our employees were in good hands,” Evans continued. “Getting the deal structure and terms right had a big effect on that. We’re very thankful for SDR’s transaction expertise and ability to keep us consistently on track to get the deal done.”
Headquartered in Buffalo Grove, IL, CATI has been serving manufacturing and engineering clients since 1992. CATI was the first reseller of SolidWorks in North America in 1995. The company’s depth of technical resources, ability to support the entire SolidWorks Innovation Platform and wealth of valuable technical content helps it to stand out amongst its competitors.
“Computer Aided Technology has been serving engineering and manufacturing clients for over 20 years. Like MCAD, they built their business around ensuring their customer’s success. Both companies were founded and managed by engineering and manufacturing professionals. That’s what makes this integration a great fit,” said Joel Quizon, Vice President of MCAD.
“We are happy to welcome MCAD into the Computer Aided Technology family. Both leadership teams share the same vision—making customers’ success the driving factor of this integration. We look forward to working with and supporting MCAD and their clients,” said Rich Werneth, President of Computer Aided Technology.
SDR Ventures was grateful to help facilitate this transaction which has now joined two high-quality, like-minded companies together.
“We love working with niche market leaders like MCAD. Sue, Joel and the MCAD team are on the cutting edge of both technology and service, and we view 3D printing in particular as a segment that’s primed for considerable growth,” said SDR Ventures Managing Director Travis Conway. “We’re excited for MCAD’s management team and its employees. In addition, MCAD’s customers will now have access to CATI’s InFlow Technology and its 3D printing and additive manufacturing expertise. For CATI, they’re gaining a presence in the Rocky Mountain Region and bringing on MCAD’s expertise and outstanding reputation.”
About SDR Ventures
SDR Ventures is a Denver-based investment banking firm serving private business owners in the lower middle market, including companies with values up to $300 million. SDR offers transaction advisory, private capital formation and business consulting services across a wide range of industries. The SDR Ventures approach of “Thinking Like Owners” helps businesses maximize their value.