Minnesota-Based Customer Experience (CX) Leader Avtex Joins NEP Portfolio
February 12, 2018
Minneapolis, Minnesota – Norwest Equity Partners (“NEP”), a leading middle market investment firm founded in 1961, has made a significant investment in Avtex (the “Company”), a customer experience (CX) focused consulting and technology company that provides design, implementation, and ongoing support of solutions in the CX ecosystem, including contact center and CRM solutions. The transaction closed on February 8, 2018; financial terms were not disclosed.
Avtex is a full-service consultancy focused on helping customers build lasting relationships with their customers. From strategy and technology selection to management and measurement, Avtex offers end-to-end services that support customers’ CX goals. NEP’s investment is a significant milestone that will help Avtex add incremental product and service offerings, invest in R&D and innovation, and position the Company for strategic add-on acquisitions. Led by a strong and cohesive management team, Avtex has established a differentiated go-to-market offering, an entrenched customer base, and deep relationships with its primary technology vendors.
Todd Solow, NEP Partner, stated, “Customer experience technology is a growing need being driven through shifting customer expectations. Avtex has an attractive business model and offers unique and differentiated customer experience solutions that help the Company win new customers, expand its reach within existing customers, and strengthen value to OEMs. We look forward to working together with George Demou and his team to leverage their existing growth momentum to further build and grow Avtex for the future.”
NEP has recently significantly grown its reach within the tech-enabled business services industry with deep experience, relationships and investments within the sector. Current portfolio investments, along with Avtex, include Marco (technology-focused products and services), Bailiwick (IT solutions for Fortune 100 and 500 companies), Welocalize (translation and localization solutions), and Focal Point Data Risk (data risk management services).
In addition to leveraging NEP’s business services platform, Avtex will work closely with Kevin Torgerson, an NEP Operating Partner with more than 20 years of business services and technology strategy, marketing and growth experience. “Avtex has significantly grown over the last several years, and our investment partnership with them is going to focus on a continuation and acceleration of growth in areas that provide Avtex customers increasing value. Customer experiences are the result of a complex combination of tools, processes and strategy, and Avtex has developed a leading edge way to effectively coordinate all of these components. The Company is in a great position for continued success, and the right team is in place to help lead the way,” Torgerson shared.
George Demou, Avtex President & CEO, stated, “Avtex has been on a steady growth trajectory and created extraordinary value for our clients with an ‘end to end’ approach to CX Technologies and Services. The partnership with NEP provides us a strong partner to realize our future opportunities and extend what we are doing to more clients nationally.”
Investing locally is also a key tenet of NEP’s investment approach. With a strong local portfolio built over the years, NEP is excited to add Avtex to its family of Twin Cities-based companies, including Marco, Bailiwick, Apothecary Products, Bix Produce, eyebobs, Gopher Resource, and Minnesota Rubber & Plastics. Representative former local investments include Life Time Fitness, Shock Doctor, Wealth Enhancement Group, Data & Contact Management, Norwesco, Select Comfort, and Lindstrom Metric.
Lincoln International advised Avtex on the transaction; Winston & Strawn LLP provided legal services for NEP; Varagon served as senior lender. Prior to this transaction, Avtex was a portfolio company of LaSalle Capital.