Private equity, Mergers and Acquisitions, Midmarket, Mergers and Acquisitions

Generational Group Acquires Technology Consultancy Precocity

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Generational Group, a middle market investment bank and advisory services firm, has acquired a majority stake in Precocity. The IT consulting firm's management team also acquired a stake in the business. Financial terms of the deal were not disclosed.

This is technology M&A deal number 161 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.

Precocity: Areas of IT Service Expertise

Precocity, based in Dallas, has 44 employees listed on LinkedIn. The company's entire team remains in place under Generational Group ownership.

Precocity positions itself as a "customer experience consultancy with technology and user experience at its core." The company specializes in:

  • Cloud solutions;
  • data science;
  • software/data engineering;
  • Artificial intelligence (AI)/machine learning (ML);
  • web/mobile development; and
  • User Experience (UX) research and design.

Meanwhile, Generational Capital Markets, the firm behind Generational Group, typically backs companies that have roughly $50 million in revenue.

The firm has extensive experience in the technology sector. For instance, Virtual Guardian acquired NaviLogic -- a Generational Equity client -- in December 2021. NaviLogic offers cybersecurity, program assessment and management, governance risk and compliance (GRC), compliance and audit, vendor risk management, artificial intelligence (AI), as well as other proprietary consulting solutions.

Generational Group Acquires Precocity: Executive Perspectives

In a prepared statement about the Generational Group deal, Precocity CCO Tim Doll said:

“We are very pleased to be joining a leading organization like Generational Group. From our very first meeting, we were impressed with their dedication to their clients’ success and their awareness that success in today’s environment includes harnessing vital technology platforms. Most importantly, we have core value alignment, and we look forward to helping the Generational team provide stellar service to its clients.”

Added Ryan Binkley, president and CEO of Generational:

 “This is a significant day for Generational and our clients. As a growing professional services and advisory firm, our reputation is built on meeting the needs of our clients. Whether they are looking to grow or eventually exit, we recognize the major role technology plays in building a successful business. That is why we are excited to partner with the experienced team at Precocity, whom we look forward to working with for years to come. Together, we are confident that we will build the leading middle market technology consulting practice.

Our investment in Precocity will help them reach the next level of growth and development to meet the growing demand for their services. The team that Tim has brought together is truly world-class and we are very excited to invest in their future as they join our firm.”

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.