O’Melveny Represents Diversis and ArrowStream in Deal with Tailwind Capital
December 16, 2020
FOR IMMEDIATE RELEASE
CENTURY CITY—December 16, 2020—O’Melveny advised Los Angeles-based buyout firm Diversis Capital in its sale of cloud-based software company ArrowStream, Inc. to Tailwind Capital, a private equity company. O’Melveny represented both Diversis and ArrowStream in this transaction.
Diversis focuses on software and technology-enabled organizations. Since 2013, the company has invested primarily in software and technology-enabled organizations led by teams looking for a partner to help accelerate growth and create market leaders.
Diversis acquired ArrowStream in 2017 and during its ownership worked collaboratively with ArrowStream's management to invest in the company's technology platform to enhance its functionality and broaden its presence in the foodservice industry. Since it was acquired by Diversis, ArrowStream's recurring revenues tripled.
ArrowStream provides end-to-end supply chain management software for the food services industry. Its solutions connect over 250 restaurant chains, 1,000 distributor locations and 8,000 suppliers on a single platform, and include well-known brands such as Raising Cane's Chicken Fingers, Shake Shack, Wendy's, Inspire Brands, QDOBA Mexican Eats, and Subway, among others. Based in New York, Tailwind Capital focuses on investments in growth-oriented, middle market companies.
The Century City-based O’Melveny team was led by partner David Smith, and included partner Rob Graffum, counsel Zach Greenberg, associates Steven Xie and Rob Catmull.
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The following release was issued by Diversis:
DIVERSIS ANNOUNCES SALE OF ARROWSTREAM
Revenues Tripled during Diversis's Four-Year Ownership
Diversis Capital ("Diversis"), a Los Angeles-based buy-out firm focused on software and technology-enabled organizations, today announced the sale of ArrowStream, Inc. ("ArrowStream"), the leading cloud-based provider of end-to-end supply chain management software for the foodservice industry, to Tailwind Capital ("Tailwind"), a private equity firm focused on investments in growth-oriented, middle market companies.
"We appreciate all the guidance and investment that Diversis has provided us over these past few years," said Jeff Dorr, President of ArrowStream. "Diversis shared our vision to transform supply chain visibility for the foodservice sector and we are very excited to continue that mission with another exceptional financial partner in Tailwind Capital."
Diversis acquired ArrowStream in 2017 from the founding family and during its ownership worked collaboratively with ArrowStream's management to invest in the company's technology platform to enhance its functionality and broaden its presence in the foodservice industry. They also helped to strengthen the management team and expand sales and marketing programs. ArrowStream's recurring revenues organically tripled during Diversis's ownership.
ArrowStream's market-leading supply chain solutions connect over 250 restaurant chains, 1,000 distributor locations and 8,000 suppliers on a single platform, and include well-known brands such as Raising Cane's Chicken Fingers, Shake Shack, Wendy's, Inspire Brands, QDOBA Mexican Eats, and Subway, among others.
"We were fortunate to partner with an exceptional management team at ArrowStream a few years ago," said Kevin Ma, Managing Partner at Diversis. "When Diversis first invested in the company, we saw a mission-critical platform that was transforming supply chain visibility within the foodservice sector, an area that is becoming more critical with each passing day. We couldn't be more proud to have helped this team evolve into the high growth, market leading innovator it is today."
ArrowStream was advised by Lincoln International LLC as financial advisor and O'Melveny & Myers LLP as legal counsel.