National business and technology consulting firm West Monroe has acquired Two Six Capital, a data science company focused on the private equity sector. The buyer also is a Top 100 Vertical Market MSP, according to ChannelE2E research. Financial terms of the deal were not disclosed.
This is M&A deal number 499 that ChannelE2E has tracked so far in 2020. Find a full list of M&A deals here.
Two Six Capital, founded in 2013, leverages proprietary technology—powered by artificial intelligence and machine learning—to advise private equity firms on revenue drivers and business projections. Two Six Capital works closely with private equity deal teams, corporate boards, management teams, and operating partners across the deal lifecycle to construct financial models for investment decisions, West Monroe adds.
The founders and managing partners of Two Six Capital, Ian Picache and Sajjad Jaffer shift to senior director roles at West Monroe. Picache also joins the investment committee of West Monroe Capital, where he will continue to co-invest alongside private equity clients. Also, Joseph Davin, Ph.D., joined as an Innovation Fellow and will focus on data science. And the Two Six Capital team joined West Monroe’s growing San Francisco office.
West Monroe's Big Data, Analytics Expertise for Private Equity Firms
The united team will focus on such developments as Intellio Predict, a West Monroe software platform that can "quickly ingest billions of datapoints and accurately project business drivers that drive investment decisions and value creation," the buyer says. Moreover, Two Six Capital’s additional statistical-, AI-, and ML-powered capabilities will be incorporated into West Monroe’s Intellio DataOps and Intellio Insights offerings.
So how does this deal fit into the West Monroe business and technology strategy? The buyer has had a private equity advisory service since 2002. That service has advised on more than 3,000 transactions and executed hundreds of post-close value creation investments for portfolio companies, West Monroe says. Together, West Monroe and Two Six Capital will take a data science-heavy approach to advising private equity firms and their portfolio companies.
West Monroe Buys Two Six Capital: Executive Perspectives
In a prepared statement about the deal, Matt Sondag, managing director and leader of West Monroe’s private equity practice, said:
“Two Six Capital has built an empirical value creation analytics engine that can predict future outcomes with a high degree of precision. With a spotlight on value creation to justify elevated valuations, the need for data-driven insights to gain a competitive advantage has never been more important to our private equity clients and their portfolio companies.”
Added Ian Picache, managing partner of Two Six Capital and now a senior director at West Monroe:
“West Monroe’s presence, brand recognition, and relationships within private equity is exactly what we wanted to scale our business to meet industry demand."
Noted Sajjad Jaffer, managing partner of Two Six Capital and now a senior director at West Monroe:
“We share a common vision around data science, analytics, and value creation and are thrilled to combine our intellectual property with the experienced team at West Monroe to broaden our work across an outstanding client portfolio."
Concluded West Monroe’s Chief Strategy Officer Tom Bolger:
“This acquisition is another step in a series of strategic moves that help West Monroe drive tangible business value from leading-edge technology. We will continue to make smart acquisitions, like this one and our acquisition of Pace Harmon just weeks ago, that increase the value of our consulting services to clients.”
West Monroe: Earlier Acquisitions
West Monroe has been both a buyer and seller in the M&A market. Key moves include:
- November 2020: Pace Harmon, an IT consulting, outsourcing and professional services firm based near Washington, D.C.
- January 2020: Private equity firm M/C Partners acquired West Monroe’s managed IT services provider (MSP) division.
- October 2019: West Monroe acquired GoKart Labs, a Minneapolis-based digital product studio specialist.
- April 2019: West Monroe acquire Waterstone Management Group to boost M&A consulting practices, particularly for private equity & technology company clientele.