Bain Capital Double Impact, the investment arm of Bain Capital, has acquired a majority stake in Rural Sourcing, an IT services and software development firm headquartered in Atlanta Georgia. Financial terms were not disclosed.
Rural Sourcing seeks to employ US tech workers in areas away from the industry’s traditional centers. The deal will allow the company to grow its footprint and digital service offerings, according to Bain. Rural Sourcing will continue to operate under its current management team, who also remain significant investors in the company.
Founded in 2004, Rural Sourcing delivers its services from six points in the United States, including Mobile, Alabama; Augusta, Georgia; Jonesboro, Arkansas; Albuquerque, New Mexico; Oklahoma City, Oklahoma; and Fort Wayne, Indiana. The company’s software development expertise includes application development, cloud migration, application security, web and mobile UX design, and legacy modernization services.
Speaking about the deal, Monty Hamilton, CEO of Rural Sourcing, said:
"We've been impressed by Bain Capital Double Impact's commitment to bringing workforce development into the 21st century and their recognition that our business model nurtures the growth of new technology hubs across the country, ensuring that talented professionals shouldn't have to choose location over vocation. This partnership will help to drive our expansion into new geographies and add new high-value digital and cloud solutions as we continue to build Rural Sourcing into a leading provider of cost-efficient onshore IT services for Fortune 1000 companies."
Iain Ware, principal at Bain Capital Double Impact, added:
"Monty and his team recognized that several industry trends reinforced the value proposition of onshore IT outsourcing, including the transition towards fast-paced, agile software development cycles and new workforce strategy models. Rural Sourcing has developed a powerful onshore business model to capitalize on this wave by leveraging a strong talent base in mid-size metro areas in the United States. Fostering high-quality employment opportunities is a bedrock of our community building thesis and we look forward to partnering with Rural Sourcing to grow the business, create jobs and catalyze growing technology communities in these cities."
Bain Capital’s Investment Activity
Bain Capital Double Impact has already produced a number of deals in the healthcare space. In October 2018, the firm bought two regional providers and in January the company acquired a third, combining them to create Arosa+LivHome. It also acquired HealthDrive, which provides dentistry, optometry, and other healthcare services in assisted living homes and other facilities.
There are reports that Bain Capital will launch a second Double Impact fund sometime this year. The original fund closed with $390 million in 2017.
Additional technology and digital services sector investments from Bain Capital have included names like Bellsystem24, Brillio, Blue Coat, BMC Software, Central Square, Genpact, QuEST Global Services, SunGard Data Systems, Vertafore, Viewpoint, and Waystar.