ProfitSolv, a provider of practice management software and payments processing solutions for legal, accounting, and professional services firms, announced on June 24 a significant strategic investment co-led by growth equity firm FTV Capital and Lightyear Capital, an existing investor in the company since it launched in 2020.
Financial terms of the deal weren’t disclosed.
ProfitSolv said Tuesday that the investment will drive its continued market leadership position in its core verticals, with a focus on continuing product innovation, strengthening its payments offering, and expanding the business through mergers and acquisitions.
The Wall Street Journal reported today that the deal marks an exit for minority investor Greater Sum Ventures and a strategic shift for private equity firm Lightyear, which explored selling the business before bringing in FTV as an equal co-owner.
“This new strategic investment is a testament to the rapid success we’ve achieved since our founding five years ago, supported by Lightyear’s deep domain expertise and operating resources, and the hard work of the entire ProfitSolv team,” ProfitSolv CEO Kelley Castell said in a statement. “We are thrilled to welcome FTV as a new investor—a firm that brings unique expertise in scaling vertical software and payments businesses and shares our product-centric and customer-first approach. With FTV and Lightyear, ProfitSolv is optimally positioned to continue our ambitious growth trajectory while remaining steadfast in our commitment to delivering exceptional value to our clients.”
Founded in 2020 and initially backed by Lightyear and Greater Sum Ventures, ProfitSolv offers a comprehensive suite of practice management software and payments processing solutions tailored for the legal, accounting, and professional services verticals. The company’s integrated and easy-to-use technology offerings serve a wide range of professional services firms—from single practitioners to 150 ore more practitioners.
ProfitSolv said it has expanded its presence in its core industry verticals by successfully executing both organic and inorganic growth initiatives. According to the Wall Street Journal, ProfitSolv’s first three acquisitions were Rocket Matter, a cloud-based legal billing, practice management, and payment processing software business; TimeSolv, a cloud-based legal billing and timekeeping software business; and ImagineTime, a practice management and payments company serving accounting and other professional services firms.
Since then, ProfitSolv completed eight more acquisitions and has increased revenue more than 10-fold. The Knoxville, TN-based company now has a client base of approximately 21,000 businesses across the U.S. and processes more than $20 billion in invoicing annually.
“We are excited to continue to partner with Kelley and team for this next chapter of growth,” said Michal Petrzela, partner at Lightyear. “We welcome FTV Capital to this partnership and believe that our shared vision and expertise will drive continued innovation for ProfitSolv in the years to come.”
Kyle Griswold, partner at FTV Capital, added, “ProfitSolv has established itself as a leader across the legal, accounting and professional services ecosystem thanks to its robust technology offering combining best-in-class software and payments capabilities. Unlocking growth for leading vertical software businesses is a key focus area for FTV. We have strong conviction in the company’s platform and its future growth prospects and look forward to partnering with the ProfitSolv team and Lightyear to capitalize on the company’s exceptional market position.”
Guggenheim Securities served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to FTV Capital. William Blair and Raymond James served as financial advisor and Davis Polk & Wardwell LLP served as legal counsel to Lightyear Capital and ProfitSolv.
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