Carousel Capital announced today that it has partnered with management and longstanding shareholder, Gary Comer, Inc. (“GCI”), to recapitalize Pegasus TransTech, a leading provider of electronic revenue cycle, document management and invoicing solutions for the transportation industry. Based in Tampa, Florida, Pegasus TransTech provides solutions that streamline document transmission, billing, collections, payroll and other revenue cycle processes for leading truckload, freight brokerage, third-party logistics and other transportation companies. Pegasus TransTech serves more than 900 travel centers in North America, 42 of the top 50 truckload carriers, 17 of the top 30 freight brokers and over 300,000 drivers.
“Pegasus TransTech is a platform for growth as its transportation industry solutions are serving the needs of its customers better than ever,” said Bill Schleicher, President of GCI. “GCI wanted to ensure that as the business grows, the capital available to the company was well matched for the opportunities at hand,” he said. “Carousel Capital’s track record of growing businesses in partnership with management aligns perfectly with the interests of GCI and we are very pleased to be their partner.”
“We are excited to partner with Carousel Capital,” said Frank Adelman, CEO of Pegasus TransTech. “The increasing complexity of today’s supply chain requires our customers to utilize the most reliable and efficient document management solutions possible,” he said. “Carousel Capital’s investment and support will enable us to broaden our customer base and accelerate innovation to meet our customers’ needs.”
“We are highly impressed with Pegasus TransTech’s transactional revenue model, track record of growth, entrenchment with its customers and forward-thinking management team,” said Jason C. Schmidly, Managing Partner of Carousel Capital. “The company has built a robust infrastructure of revenue cycle management solutions for the transportation industry across a vast network of users,” he said. “Providing cash flow acceleration solutions to the transportation and logistics sector will continue to become more and more important and we look forward to working with management to pursue its numerous growth opportunities.”
Pegasus TransTech’s flagship product, TRANSFLO Express®, is the industry-leading document transmission solution preferred by drivers, transportation carriers and travel centers across North America. In addition, Pegasus TransTech offers TRANSFLO Mobile, a smartphone and tablet imaging application available on iOS and Android devices with over 50,000 downloads and TRANSFLO Now!TM, an in-cab or remote scanning solution.
All Pegasus TransTech document imaging solutions provide same-day access to delivery documents, which speeds driver pay and accelerates the billing cycle for carriers. Pegasus TransTech also offers carriers TRANSFLO® and cloud-based TRANSFLO DMS, robust software applications that provide back office document management and workflow solutions and seamless integration with other Pegasus TransTech offerings.
The company’s newest innovations include TRANSFLO $Velocity, a standard interface that connects over 14,000 carriers and brokers, enabling electronic transmission of load documents and acceleration of revenue cycles in the supply chain. Most recently, Pegasus TransTech introduced Load Track, a GPS in-transit visibility solution that enables carriers and brokers to track shipments via smartphone and tablet devices.
In addition to capital provided by Carousel, GCI and management, the transaction was funded with financing provided by Madison Capital Funding LLC. K&L Gates LLP provided legal counsel to Carousel Capital while Loeb & Loeb provided legal counsel to GCI.
About GCI
GCI is the investment office of Lands’ End founder Gary Comer's family. As a family-funded private equity firm, GCI is committed to providing patient capital and fostering sustainable, mutually rewarding partnerships with passionate people who lead innovative companies.
Carousel Capital is a private investment firm that invests in companies located in the Southeastern United States. Carousel’s investor base includes institutional investors and an elite group of more than 100 current and former CEOs with significant operating experience. Since its inception, Carousel has invested in 32 companies primarily in three targeted growth sectors: business services; consumer products and services; and healthcare services.
