Neuberger Berman is buying a minority stake in tax advisory and software provider Ryan LLC.
The firm is making the investment through its Neuberger Berman Capital Solutions and Neuberger Berman Private Markets units, according to a statement Wednesday that confirmed a Bloomberg News
Neuberger is investing up to $1.2 billion in Ryan, valuing the company at about $7 billion, people familiar with the matter said, asking not to be identified discussing confidential information.
Neuberger will become a shareholder in Ryan alongside Onex Corp. and Ares Management Corp. It will receive two board seats, the people said. Ryan will continue to be led by
The CEO said in the statement that the company was "deliberate" in selecting a partner that shared its long-term vision.
Based in Plano, Texas, Ryan specializes in tax services and technology for multinational corporations and large enterprises. In particular, the firm offers tax recovery, which involves helping companies reassess taxes in different jurisdictions. It has benefited from rising demand for technology-enabled tax compliance, recovery and consulting services, as tax regimes become more complex globally.
"We believe the company is exceptionally well positioned to benefit from long-term secular trends in tax regulation, compliance, and digital transformation," David Lyon, head of Neuberger Berman Capital Solutions, said in Wednesday's statement.
The Neuberger deal will allow Ryan to stay private, while giving Onex and Ares a chance to cash out part of their investments and still benefit from future growth. The transaction is expected to close in the first half of this year.
Neuberger Berman Capital Solutions manages $12 billion in assets and has invested in large private companies, such as financial services firm Mariner.
Bank of America Corp. and JPMorgan Chase & Co. advised Ryan, while Royal Bank of Canada and Goldman Sachs Group Inc. worked with Neuberger.
