PE firms in $205M buy of Shelton database company
Updated 3:56 pm, Tuesday, March 13, 2018
A pair of private equity investors is acquiring EDR for $205 million, with the Shelton-based firm maintaining a database with historical information on more than 4 billion properties as a resource for property lenders, appraisers and other consultants.
Silver Lake of Mento Park, Calif., and Boston-based Battery Ventures are buying EDR from the London-based Daily Mail and General Trust, which itself bought EDR’s predecessor company in 1999.
According to DMGT CEO Paul Zwillenberg, the divestment of EDR is consistent with the company’s “strategic priorities of increasing portfolio focus and enhancing financial flexibility.”
EDR employs 220 people under CEO and Weston resident Chris Aronson. For the last two decades, the property information business has been a part of DMGT’s information division.
The sale and subsequent purchase of the Shelton-based firm is a continuation of a process DMGT announced in late November. According to Aronson, DMGT announced it would be exploring the sale of the Shelton-based firm as part of an assessment of the parent company’s entire portfolio.
According to Aronson, EDR’s sale to a partnership of tech-focused firms was a perfect match for the future of the firm.
“What’s exciting for us is that both Silver Lake and Battery Ventures have such great expertise and they are willing to put some capital behind the business,” he said. “They are going to help us continue to grow, and I think there is incredible opportunity for this company to continue its growth plan and to widen our footprint in Connecticut.”
Silver Lake is an international technology investment company with $39 billion in combined assets and roughly 100 investments within tech centers like Silicon Valley, Hong Kong and Tokyo.
Battery Ventures is another tech-focused firm with more than 30 years of experience and investments in more than 300 companies within information and industrial technology sectors.
“That experience is invaluable,” Aronson continued. “They have the track record as you can see as you read about these firms, but they also have the experts that they make available to their portfolio companies, and expert guidance.”
As the real estate and risk management industry continues to evolve, Aronson said EDR plans to do the same as the firm looks to consolidate different aspects of its market and provide more automation and better data in a more efficient package for clients.
“We’ve got some pretty clear visibility with respect to where we’d like to take the business and now we’re excited to have the backing behind us,” Aronson said.
The transaction is expected to close in the coming weeks.