Press release: Bain Capital Double Impact Makes Flagship Community Building Investment in Rural Sourcing
Bain Capital Double Impact, the impact investing business of Bain Capital, today announced it has acquired a majority stake in Rural Sourcing, a leading provider of onshore outsourced digital technology and IT services that taps talent located in small and mid-size cities across America. The partnership will allow Rural Sourcing to further scale its national footprint and digital service offerings while creating high-quality jobs and new technology corridors across the country. Rural Sourcing will continue to operate under its current management team, who remain significant investors in the company. Financial terms of the private transaction were not disclosed.
Founded in 2004, Rural Sourcing provides software development services to a diversified portfolio of blue-chip clients from six onshore delivery centers located in Mobile, AL; Augusta, GA; Jonesboro, AR; Albuquerque, NM; Oklahoma City, OK; Fort Wayne, IN; with headquarters in Atlanta, GA. The company offers a growing suite of software development capabilities including application development, cloud migration, application security, web and mobile UX design and legacy modernization services. Rural Sourcing professionals deliver a closely-integrated, cost-efficient, and agile approach to remote IT execution that enterprises increasingly demand. By providing these services onshore, the company helps bridge the gap between businesses and the technology expertise they need to grow, with an attractive customer value proposition, while advancing its mission of bringing high quality technology jobs back to the U.S.
“We’ve been impressed by Bain Capital Double Impact’s commitment to bringing workforce development into the 21stcentury and their recognition that our business model nurtures the growth of new technology hubs across the country, ensuring that talented professionals shouldn’t have to choose location over vocation,” said Monty Hamilton, CEO of Rural Sourcing. “This partnership will help to drive our expansion into new geographies and add new high-value digital and cloud solutions as we continue to build Rural Sourcing into a leading provider of cost-efficient onshore IT services for Fortune 1000 companies.”
Bain Capital has deep investing experience across the technology and digital services sector, with a long track record of investing in and adding value to companies such as Bellsystem24, Brillio, Blue Coat, BMC Software, Central Square, Genpact, QuEST Global Services, SunGard Data Systems, Vertafore, Viewpoint, and Waystar.
“Monty and his team recognized that several industry trends reinforced the value proposition of onshore IT outsourcing, including the transition towards fast-paced, agile software development cycles and new workforce strategy models. Rural Sourcing has developed a powerful onshore business model to capitalize on this wave by leveraging a strong talent base in mid-size metro areas in the United States,” said Iain Ware, Principal at Bain Capital Double Impact. “Fostering high-quality employment opportunities is a bedrock of our community building thesis and we look forward to partnering with Rural Sourcing to grow the business, create jobs and catalyze growing technology communities in these cities.”
Committed debt financing for the transaction was provided by Bank of Montreal. Morris, Manning, & Martin LLP provided legal representation to Rural Sourcing and Goodwin Procter represented Bain Capital Double Impact.
Photo courtesy of Andrew Magill.