Indianapolis-based T2 Systems Inc. has acquired a fellow parking technology company, Atlanta-based ParkingSoft LLC.
Founded in 1994, T2 Systems makes software to manage fee collections and enforcement of parking violations for universities, governments and hospitals. The company has about 1,300 customers in all 50 states plus nine provinces in Canada.
ParkingSoft, founded in 2006, provides cloud-based software and automated hardware for clients that include hospitals, airports and off-airport parking facilities. Most of ParkingSoft’s 150 or so clients are based in the U.S.
T2 CEO Adam Blake declined to disclose financial terms of the deal, but he told IBJ on Wednesday that it made sense for a couple of reasons.
With the acquisition, T2 now has access to ParkingSoft’s “state-of-the-art technology,” Blake said, as well as a host of new markets.
“We only had a 2 percent overlap between our markets and their markets,” Blake said.
Another attraction: ParkingSoft’s annual revenues grew by 60 percent between 2015 and 2016.
Blake declined to reveal annual revenue numbers for either company. In 2015, T2 was named to IBJ’s Fast 25 list of fastest growing local companies. According to information provided at that time, T2 had $60.3 million in annual revenue in 2014, roughly triple its 2010 revenue.
T2 has 240 total employees, including about 100 each in Indianapolis and in Vancouver, British Columbia. The remainder work remotely from various locations.
ParkingSoft has 90 employees, most of them in Atlanta.
Blake said both the Indianapolis and Atlanta offices will continue to operate, with Indianapolis remaining the T2 headquarters. ParkingSoft will live on as a brand name for certain products, Blake said, but the Atlanta office will switch over to using the T2 name.
The deal was announced earlier ths week.
T2 is a privately-held company owned by Thoma Bravo LLC, a San Francisco-based private equity firm. Thoma Bravo acquired T2 last year from Pamlico Capital, a Charlotte, North Carolina-based venture capital firm.
"When we acquired T2, we knew that strategic partnerships and acquisitions would be key to increase the company's market footprint and accelerate its growth," said Thoma Bravo Vice President Carl Press said in a media release. "This deal will expand T2's customer base and usher in enhanced products and functionality for its customers. We couldn't be more thrilled."