Frontier Capital Exits Daxko, Inc.

CHARLOTTE, N.C.--February 24, 2014 - Frontier Capital is pleased to announce the successful exit of its investment in Daxko, Inc., the leading provider of SaaS-based software solutions for member-based organizations. Founded in 1998 and headquartered in Birmingham, AL, Daxko, Inc., has experienced rapid growth to become a leading provider of mission-critical software applications for member-based nonprofits, including operations, accounting, fundraising, and mobile solutions. The company received a significant investment from Pamlico Capital.

Frontier provided Daxko with $10 million of growth equity in December 2008. The investment supported the company’s expansion of sales, marketing, customer support, and product development. Daxko provides software and services to nearly half the nation’s YMCAs, which total $6.1B in operating revenues in the United States, as well as a growing number of Jewish Community Centers and other member-based nonprofits. Last year Daxko expanded its product portfolio with the release of Daxko Engage, the first CRM and marketing automation software designed specifically for member-based nonprofits, as well as the acquisition of ActiveLife Apps, a mobile platform for members to find information on schedules, programs, and events.

David Gray, President and CEO of Daxko said, “Over the length of our partnership with Frontier Capital, we worked together to evolve our strategy and produced dramatic growth in revenue and profitability. With a record year for Daxko in 2013, we look forward to what the future holds and thank Frontier for their role in our success.”

“We are proud to have partnered with Daxko and played a role in helping the Company more than triple in size during the tenure of our investment.  Daxko has a well deserved reputation for building world class software and providing exemplary service to their customers and we know they will continue in this tradition with their new capital partner, Pamlico,” added Andrew Lindner, Partner of Frontier Capital.

The Daxko transaction highlights Frontier’s continued success in SaaS, which accounts for almost half of the firm’s investment activity since 1999 and includes realized investments in Anodyne Health, Digital Envoy, Accipiter, and Lanyon.

The transaction closed on February 21, 2014. Terms of the transaction were not disclosed.  Bradley Arant Boult Cummings provided legal counsel to the company on the transaction.

About Frontier

Frontier Capital is a Charlotte-based growth equity firm focused exclusively on technology enabled business services. Founded in 1999, Frontier partners with management teams that can benefit from capital to accelerate growth, fund acquisitions or generate shareholder liquidity. We make minority and majority equity investments in high growth companies and have built an excellent track record of delivering returns to both our investors and management partners.

About Daxko

Headquartered in Birmingham, Alabama, with an additional office in Atlanta, Georgia, Daxko is a leading provider of mission-critical software solutions to member-based nonprofits. Daxko’s solutions help customers achieve high levels of operational efficiency, strong fiscal management, and increasingly engage the community to expand their mission. Data show that Daxko’s customers grow twice as fast as similar organizations using other solutions. Daxko’s portfolio of solutions includes: Daxko Operations for membership, program and event registration, fundraising, and transaction processing; Daxko Engage, for relationship management and marketing communications; Daxko Accounting, fund-based accounting and budgeting software; Daxko Mobile, a member-facing mobile application; and Daxko T2 Consulting in the areas of strategic planning, leadership, marketing, fundraising, and facility design . Daxko has 235 full and part-time team members.

About Pamlico Capital

Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in the U.S.  Pamlico Capital seeks control-oriented growth equity investments of up to $100 million alongside proven management teams in its target industries, business & technology services, communications, and healthcare.  The firm, based in Charlotte, NC, currently manages over $2 billion in assets.