Global Leader Procare Software Partners with Warburg Pincus

Procare Software announced a pair of deals that allow the company to simultaneously make a major investment in one company while also securing private equity funding to finance the deal from another.

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In an announcement made earlier this month, Procare Software closed a deal to acquire Cirrus Group, LLC. The terms of the deal were not disclosed at the time of the announcement.

The acquisition of Cirrus Group will help build up Procare’s cloud-based capabilities. Cirrus Group has a well-established suite of software solutions which are geared toward helping to manage multi-site programs such as daycare, after-school and parks recreation programs. The products, known as DayCare Works, SchoolCare Works and RecCare Works, were first introduced in 2002. Today, Cirrus Group services some of the largest school districts in the United States and Canada, as well as smaller one-facility centers and community education providers.

In another announcement made in conjunction with the Cirrus deal, Procare notified the public that it had closed on a strategic round of funding from Warburg Pincus, a private equity firm with offices in the United States, Europe, China, Brazil and India.

Representatives from Procare said that the additional funds will go toward growth initiatives, future strategic endeavors, and to provide existing shareholders with additional liquidity. According to the terms of the deal, select members of Procare’s management team will retain a stake in the company and TA Associates, which initially invested in Procare in 2015, will retain their existing stake in Procare as well.

Procare Software is widely recognized as a global leader in software solutions for daycare, school systems and nonprofits. The company serves over 30,000 educational institutions with software that helps to integrate payment processing, technology and other services in both a desktop package and in a cloud-hosted platform.

With a focus on growth investing, Warburg Pincus invests in healthcare and consumer products, technology, media and telecommunications, financial services, energy, and industrial and business services companies. The firm has invested over $60 billion in more than 825 companies in its over 50 year history. Other recent notable investments include Cargomatic and BitSight.