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The investment in Advocate Networks marks the second platform investment in Spire's fourth fund. Advocate's services include TBM-as-a-Service, TEM-as-a-Service, and advisory services that assist their clients in expense and contract management, business/data analytics, IT cost reduction and IT planning.
FREMONT, CA: Atlanta-based Premier Technology Business Management Services company, Advocate Networks, LLC, received an investment from Spire Capital, a New York-based private equity firm specializing in investments in the technology-enabled business services, media, communications, and education sectors. The deal amount was not disclosed. As part of the investment round David Schaible, Andy Armstrong, and Rupali Varma of Spire Capital will join Advocate's Board of Directors. The investment will deliver capital to enhance research and development, expand solutions and geographies, and enable complementary acquisitions.
"After a rigorous process that started in 2019, we selected Spire Capital as our strategic partner. We feel the culture fit is strong, the strategic alignment is sound, and the opportunity to scale the business with David and his team is outstanding. We are delighted to start the next chapter of growth, innovation, and TBM leadership with Spire," stated Tim Wise and Scott Fogle, Co-CEOs.
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Tim Wise and Scott Fogle, who founded the company in 2001 and will continue to lead the company after the investment. The investment in Advocate Networks marks the second platform investment in Spire's fourth fund. Advocate's services include TBM-as-a-Service, TEM-as-a-Service, and advisory services that assist their clients in expense and contract management, business/data analytics, IT cost reduction and IT planning. The company has built a proprietary data warehouse solution known as "Helix" and an automation platform known as "Yottamation", that combine to enable differentiated service offerings to its clients. Advocate was named Apptio's #1 Enterprise Partner for North America in 2019, confirming Advocate's "premier" positioning.
The company has register consistent growth since its inception with recurring revenue now accounting for nearly 70 percent of revenue. Advocate serves enterprise customers across the United States whose annual IT spend is between USD 50 million and USD 500 million across various market verticals.
"Tim Wise and Scott Fogle have built an incredible company and assembled a deeply talented management team that has grown to become the leader in managed services for TBM and TEM. Spire Capital bases its investment thesis on the conviction that IT services represent an ever-evolving area of opportunity. Advocate has positioned its platform and service offerings alongside its software partners to deliver tremendous value for its customers. We are proud to partner with the company to effectuate their next stage of growth," said David Schaible, Partner at Spire Capital.
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