has secured debt financing for its acquisition of

Capstone Headwaters Advises Align Capital Partners on its Acquisition Financing for Electronic Transaction Consultants Corporation

August 2020

Boston, MA, - Capstone Headwaters (“Capstone”) is pleased to announce the closing of a senior secured credit facility for Electronic Transaction Consultants Corporation (“ETC”), the proceeds of which funded a portion of Align Capital Partners’ (“Align”) acquisition of the Company.  The financing was led by Capital Southwest.

Based in Richardson, TX, ETC is a market-leading software and services provider of electronic tolling technology and smart mobility solutions. They serve electronic tolling agencies by providing back office and roadside services through its next-generation, modular software platform.  Their proprietary software utilizes artificial intelligence (“AI”) technology and big data to meet unique tolling and transportation needs at a lower cost to the customer. ETC offers a comprehensive suite of integrated software and service solutions that enable the processing of millions of daily toll transactions on the nation’s busiest toll roads.

Align Capital Partners is a Dallas-based private equity firm with $775 million in committed capital.  In February 2020, Align closed its second private equity investment fund at the offering’s hard cap of $450 million and ETC is an investment of this recently raised fund.  Capstone Headwaters, a leading middle market investment banking firm, worked closely with Align and ETC on all aspects of the financing, helping to structure, arrange, and negotiate the credit facility.

“This was the first time we’ve hired an advisor to arrange financing on our behalf, but felt it was necessary given the unique market environment and ACP’s need to move quickly,” commented Matt lodice, Vice President at Align. “Capstone ran a comprehensive offering process, did exactly what was promised, and played an instrumental role in getting this transaction over the finish line.”

“When we launched the transaction in mid-May, the debt capital markets were in disarray; however, ETC’s compelling fundamentals, combined with Align’s top-tier reputation, allowed us to tell a credit story that resonated with the lender community,” said Brian Schofield, Managing Director with Capstone Headwaters’ Debt Advisory Group.  “It was a pleasure to work with Matt and the rest of the Align team and we look forward to continuing the relationship in the months and years ahead.”

 

ABOUT ETC
As a leading U.S. software and services provider, ETC provides mission-critical solutions including electronic tolling, congestion management and urban mobility software, integrated multimodal back-office platforms, and interoperability hubs. For over two decades, ETC has delivered sophisticated solutions to many of the country's largest toll authorities and transformed the industry with first-of-its-kind technology advancements. ETC's solutions process over 2 billion transactions annually, incorporating the latest in open-source machine learning and data streaming technology, with predictive Big Data analytics to offer innovative architectures comprising of riteSuite(TM) products. For more information, visit etcc.com.
 

ABOUT ALIGN CAPITAL PARTNERS
Align Capital Partners is a growth-oriented private equity firm that partners with business owners and management teams to create shared success. ACP manages $775 million in committed capital with investment teams in Cleveland and Dallas. ACP brings experience and resources to help lower-middle market companies accelerate their growth, to the benefit of management, employees, and the firm's investors. ACP makes control investments in differentiated companies within the technology, business services, specialty manufacturing / distribution, and healthcare sectors. For more information, visit aligncp.com.

 

Industry Experience

Business Services

Lead Professionals

Brian Schofield

Managing Director

Adam Morris

Vice President
“This was the first time we’ve hired an advisor to arrange financing on our behalf, but felt it was necessary given the unique market environment and ACP’s need to move quickly. Capstone ran a comprehensive offering process, did exactly what was promised, and played an instrumental role in getting this transaction over the finish line.”
Matt Iodice
Vice President
Align Capital Partners