Periscope Equity invests in Praecipio Consulting
Periscope Equity, a Chicago-based private equity firm, has invested in Praecipio Consulting, an Austin-based IT and business process consulting firm.
Founded in 2006, Praecipio focuses on consulting, integration, and training for Atlassian products. Atlassian is a leading provider of collaboration, development, and issue tracking software for project management and software developer teams.
An Atlassian Platinum Enterprise Solution Partner, Praecipio works with companies in a range of industries on optimizing their business processes with Atlassian products that levarage frameworks such as Agile, DevOps, and ITSM.
The firm currently has more than 50 employees, according to LinkedIn, and has offices in Austin, Houston, San Francisco, Monterrey, Indianapolis, and Atlanta.
Periscope Equity’s investment in Praecipio will allow the IT consultancy to enter a new era of expansion. Periscope – a specialist in control investments in technology-enabled service and software firms – plans to commit significant incremental capital to fund future acquisitions and growth opportunities at Praecipio.
"Praecipio Consulting has experienced significant growth over the past five years and with that growth, they have made the necessary investments to scale, creating an ideal platform investment,” said Eric Hinkle, principal at Periscope Equity. “Our strategy is to join forces with Atlassian Solution Partners and build the dominant Scaled Agile, DevOps, and Service Management consulting firm with global reach."
Christian Lane, founder and CEO of Praecipio, added, “As we complete our fifteenth year in business, we look forward to this exciting new chapter, one where we can capitalize on the opportunity to accelerate growth, deliver more business value to enterprise clients across the globe, and make a collective impact in our communities."
Cash-rich private equity firms have been accelerating their investment in consultancies, including traditional CPA firms, strategy firms, and technology specialists. According to a Journal of Accountancy interview with M&A expert Allan Koltin, accounting firms are attracting interest because they are viewed as low-risk, recession-proof, trustworthy, and have positive cash flow. Technology consultancies, meanwhile, are riding explosive growth in demand that is expected to continue well into the future.
