CHICAGO, April 27 /PRNewswire/ -- Frontenac Company LLC, a Chicago-based private equity investment firm, announced today that it has sold Collegis Inc., a provider of IT services to universities and colleges, to SunGard Data Systems, Inc. (NYSE: SDS). As part of this transaction, Frontenac and its executive management partners have retained ownership in what was formerly known as Collegis University Solutions, now renamed Deltak edu, Inc. Deltak operates post-secondary colleges offering online and blended programs in business, healthcare, IT and education.
"This is the fourth time Frontenac investors have realized a significant return through our partnership with Bob King as an executive leader," said James E. Cowie, Managing Director, Frontenac Company. This has been a classic implementation of our CEO1st(TM) investment model in which we partner with proven executives to acquire and grow leading mid-sized services companies."
In partnership with Salt Creek Ventures, Frontenac is leading a $25 MM investment in Deltak to fund internal growth and acquisitions. Deltak is led by J. Michael Locke, Chief Executive Officer, who most recently served as President of Collegis University Solutions.
"Deltak is an immediate player in the online college business," said Robert E. King, Chairman, Deltak. "With our cadre of services and experience we are able to rapidly move our institutions into online and blended learning programs which meet the convenience requirements of today's working student adults."
Industry surveys show that more than 900,000 students nationwide are currently enrolled in focused, career-oriented online training courses. It is expected that this marketplace will grow by 20 % annually over the next four years. "Online education is no longer viewed as a niche market," said J. Michael Locke, CEO of Deltak. "All institutions need to adapt to the requirements of today's older, working student population and moving to online and blended modalities is critical."
"After this transaction, we have retained a winning combination of career- oriented education content, school-based learning, plus skilled online curriculum developers who can bring our course offerings to an expanded audience of adults seeking new career training," Cowie said.
About Frontenac
Frontenac Company is a Chicago-based private equity investment firm with more than $1 billion under active management. Through its CEO1st(TM) investment approach, Frontenac teams with proven executives to acquire and grow companies providing services and value-added products to business customers. Its principal investment areas include financial, human resources, education and training, healthcare, industrial, marketing, media, and technology services markets. Frontenac investors include institutions, pension funds and individuals in the United States and Europe. For more information on Frontenac, please visit www.frontenac.com .
About Deltak edu
Deltak's mission is to offer students the highest quality online and blended educational programs with 24x7 personalized customer service to prepare them for careers in business, healthcare, IT and education. Deltak is a well established organization in the school investment and online education marketplace. The company has over 300 employees and 2003 revenues in excess of $20 million. Deltak is profitable and headquartered in Chicago, IL. For more information, please visit www.deltakedu.com .
SOURCE Frontenac Company LLC
CONTACT: Jamie Cowie of Frontenac Company, +1-312-368-0044, jcowie@frontenac.com
