History: Representative Prior Investments

From its on-going review of industry sectors, the firm concluded that the life and health insurance sector was an excellent contrarian opportunity since then-current market values did not reflect strong underlying fundamentals. This led to an investment in American Income, which marketed and underwrote individual supplemental life insurance and accident and health insurance for members of labor and credit unions, in one of the first going-private leveraged acquisitions of a public life insurance company. With an increase in sales of new insurance policies, improvements in home office productivity and greater control of overhead, earnings subsequently grew more than 200%. The company went public again and traded on the New York Stock Exchange until it was sold in 1994 to Torchmark Corporation for $563 million.

The firm founded this business with an experienced industry executive with a track record of improving operations and accurately assessing potential acquisition candidates in the office imaging equipment sector. Global Imaging went on to complete more than 100 acquisitions and create a national business providing thousands of customers a broad line of digital office imaging solutions, including the sale and service of copiers, fax machines and printers, electronic presentation systems and network integration and management services. From a small, initial platform, the business became a successful public company with more than $600 million in revenues before being sold to Xerox Corporation in a $1.5 billion transaction.

LECG is a global expert services firm providing independent expert testimony, original authoritative studies, and strategic advice and consulting to major corporations, law firms, governments and agencies around the world. Thoma Bravo, LLC. partnered with the founder of LECG to re-acquire it from a company to which it had been sold and then supported its growth through the acquisition of additional expert staff for the expansion of the business worldwide. Thoma Bravo, LLC. also assisted the company in completing a successful IPO and continuing its growth as an attractive public company.

As wireless communications technology first began to produce marketable products and services, we partnered with a telecommunications executive to form PageNet, which initially acquired six small companies as a base. When the price of acquisitions subsequently increased as others recognized the same opportunity, PageNet changed its focus to internal growth, using its acquired base to build new paging systems nationwide. The company grew to become the world's largest wireless communications company with more than 10 million pagers in service, successfully went public and reached a total market value of more than $1 billion dollars. Although the paging business later was overtaken by cellular telephone service, the initial $8 million investment in PageNet returned more than $700 million in cash and stock.

Thoma Bravo, LLC. led the going-private acquisition of Prophet21, a provider of enterprise software and services to the durable goods distribution market. Thoma Bravo, LLC. then worked closely with the company to add expertise to its Board, mprove its operating margins, and pursue an aggressive acquisition program that resulted in seven add-on acquisitions. As a result, the company's revenue doubled and earnings increased 4-fold in less than three years. Through a recapitalization and a subsequent sale of the business to Activant Solutions, Inc., a leading provider of technology-based business management solutions for small and medium-sized businesses, Thoma Bravo, LLC. earned almost five times its investment.

Thoma Bravo, LLC. partnered with management to acquire the business that was the Banking Systems Division of Sterling Commerce and a leading provider of financial transaction processing, electronic payments, image exchange, item processing, dispute resolution, and e-commerce solutions for financial institutions. In conjunction with management, Thoma Bravo, LLC. created a Board that included industry experts with whom Thoma Bravo, LLC. had a strong relationship; implemented a number of operating improvements; and completed an acquisition that enhanced the product and service offerings of the company. VECTORsgi subsequently was sold to Metavante Corporation, the financial technology subsidiary of Marshall & Ilsley Corporation (NYSE: MI), in a transaction that earned Thoma Bravo, LLC. an internal ate of return (IRR) of more than 125%.