Monthly Archives: September 2014

Edgewater Acquires Netcentrics To Expand Its Cybersecurity Business

Haystax Technology

Edgewater Growth Capital Partners III, L.P. (“Edgewater” or the “Fund”) is pleased to announce the recent acquisition of NetCentrics as a significant addition to the Fund’s cybersecurity platform Haystax Technology (“Haystax”). NetCentrics (“NetCentrics” or the “Company”) provides cybersecurity solutions to the Department of Defense, Department of Homeland Security, DARPA and other federal agencies. The Company is based in Herndon, Virginia and has over 280 employees.

Edgewater acquired NetCentrics to extend the range of critical capabilities at Haystax, including enterprise cybersecurity and IT network integration, while increasing access to additional new government service programs. NetCentrics is expected to be highly synergistic with Haystax’ first two acquisitions, FlexPoint and Digital Sandbox, through cross selling and bundling of services within major customer contracts.

The Haystax platform is well positioned to benefit from the increasing demand for cybersecurity products and services within both the governmental and private sectors.

state-national-logo

Edgewater Announces Specialty Insurance Investment

Edgewater Growth Capital Partners III, L.P. (“Edgewater”) is pleased to announce its recent investment in State National Companies, Inc. (“State National” or the “Company”). State National is a forty year old specialty insurance business based in Bedford, Texas with 390 employees. State National is a leading provider of services to specialty general agents and collateralized lenders through its Program Services and Lender Services lines of business. Edgewater is backing Terry Ledbetter, a highly respected industry veteran who has led the Company since its founding in 1973. State National recently signed several large new business partnerships and will utilize the newly invested equity to support their accelerated growth plan which is expected to double earnings in the next few years. In addition, Edgewater’s investment opportunity was created by the need for a founding shareholder to sell his stock due to serious health issues.

State National’s Program Services segment leverages the Company’s A.M. Best “A” rating and expansive insurance licenses to its customers in exchange for a ceding fee. Rather than take on underwriting risk which is the typical practice in the insurance industry, the Company cedes most underwriting exposure to reinsurance providers. Over the last 25 years, the Company has ceded $10 billion of insurance premiums with no losses. The Lender Services segment specializes in providing collateral protection insurance (“CPI”) to lenders, primarily credit unions, who make automobile loans. Positive trends in the CPI market are driven by growth in the lenders’ portfolios from rising auto sales, higher average loan sizes and increasing credit availability.

State National represents a compelling opportunity to back a seasoned management team with a differentiated business model and strong track record.

 

Edgewater Announces Specialty Insurance Investment (115 KB)