Advised Escalate Retail, a leading provider of all-channel commerce, on its sale to RedPrairie Corporation
Feb 2011
(a portfolio company of Golden Gate)
acquired by
  • Sector: Application Software; Industrial Tech
  • Deal Type: Strategic Deals; Private Equity Deals
  • Engagement type: Sellside
  • Size: <$200m
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Arma Partners is pleased to announce that it acted as exclusive financial advisor to Escalate Retail on its sale to RedPrairie Corporation.

RedPrairie Corporation, a productivity solutions provider, announced it has finalized the acquisition of Escalate Retail, a leading provider of all-channel commerce to specialty retailers, direct marketers and big-ticket retailers. The acquisition creates a compelling combination of assets, capabilities, and people that leverage Escalate’s capabilities and extend RedPrairie’s supply chain leadership position to create solutions that integrate and optimize the customer experience, from search to sale to delivery, no matter when, where or how the customer chooses to shop.

Escalate’s solutions deliver all-channel commerce capabilities that help reinvent shopping for more than 400 brands in the retail vertical, including St. John Knits, The Buckle, Hot Topic, Coldwater Creek, EILEEN FISHER, and The Louvre.

Escalate Retail was owned by Golden Gate Capital, a leading private equity firm with $9 billion in capital under management. RedPrairie is owned by New Mountain Capital, which manages private equity and public equity capital with aggregate assets under management totaling $8.5 billion.

– Founded in 1988

– Headquartered in San Diego, California

– Escalate provides software solutions that enable cross channel commerce in the store, on the Web and over the phone

– Solutions include clienteling, e-commerce, order management, and retail CRM solutions, as well as contact center, gift registry, guided selling, general retail and direct commerce applications

– Founded in 1975

– Headquartered in Atlanta, Georgia

–RedPrairie offers inventory, transportation, and workforce solutions for manufacturers, distributors, and retailers

– RedPrairie maintains over 20 global offices and provides solutions at more than 34,000 customer sites in over 40 countries

– The acquisition creates a compelling combination of assets, capabilities, and people that leverage Escalate’s capabilities and extend RedPrairie’s supply chain leadership position to create a combination of solutions that integrate and optimize the customer experience

– Ideally positions RedPrairie to manage both supply chain and retail activities, from the time a customer first makes contact with a retailer—no matter the channel, touch point, or device—all the way through to fulfillment

– Enhances RedPrairie’s ability to leverage their Workforce and Inventory Management solutions to help retailers optimize inventory and fulfillment processes

– Arma Partners was engaged by Escalate shareholders to evaluate the company’s strategic options

– Arma Partners worked closely with management to identify and contact both upstream and downstream strategic partners and explore value-enhancing transactions

– The highly focused approach, emphasizing both the tangible and non-tangible aspects of the transaction, enabled shareholders to evaluate their alternatives in a very short time frame

– All of the key points of the transaction were negotiated up-front in a detailed term sheet, while there was still competitive tension