Houlihan Lokey Advises Mantis Innovation

Houlihan Lokey is pleased to announce that Mantis Innovation, a portfolio company of O2 Investment Partners, LLC, has been acquired by Gemspring Capital. The transaction closed on December 10, 2021.

Mantis is a tech-enabled service provider that works with customers to deliver better building performance and improved energy efficiency. The company relies on proprietary software tools to offer a full suite of services, including energy procurement and demand management; solar, roofing, building envelope, and pavement assessment and maintenance; and LED lighting, HVAC/mechanical, and building automation systems design and implementation. Mantis is headquartered in Houston, Texas, with 17 locations across the United States, from Massachusetts to Washington.

Led by CEO Dan Marzuola, Mantis’ success has been guided by its tangible value proposition to its customers by driving operating cost savings, providing comprehensive facility maintenance solutions, and helping customers meet their sustainability goals and corporate ESG initiatives. Dan commented, “We are excited to partner with Gemspring and believe that its operational expertise, network of advisors, and M&A support will help us strengthen our platform and sustain our growth trajectory. We look forward to continuing to expand our service offerings and customer base by reinvesting in our go-to-market and customer support organizations as well as the Mantis Perform technology platform.”

O2 Investment Partners is a Midwestern-based private equity firm that seeks to acquire majority interests in lower-middle-market B2B services, technology, and select industrial companies. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value. O2 invests with a view toward partnering with management to build and grow the business and take it to its next stage of development. This requires not only a clear vision and strategic plan to create shareholder value but also a close partnership and alignment of interest with management.

“We are incredibly proud and thankful for all of the Mantis team’s hard work, dedication, and innovation made since 2018. Together, we created an industry leader with a truly differentiated service offering, supported by the company’s collaborative mentality and strong culture. We are grateful to have had the opportunity to partner with the Mantis team and believe they are in good hands with Gemspring to take the business to the next level,” added Joe Vallee, Partner at O2 Investment Partners.

Gemspring Capital, a Westport, Connecticut–based private equity firm with $1.5 billion of capital under management, provides flexible capital solutions to lower-middle-market companies. Gemspring partners with talented management teams and takes a partnership approach to helping drive revenue growth and value creation. Target companies have up to $500 million in revenue and are in the aerospace and defense, business services, consumer services, financial and insurance services, healthcare services, industrial services, software and tech-enabled services, or specialty manufacturing sectors.

Don Gerne, Managing Director at Gemspring, said, “We see building owners seeking to shift from reactive to preventative and predictive asset management as well as a strong desire to reduce energy consumption. Mantis’ broad suite of value-added services and tech-enabled solutions position the company very well to support these building owners as the go-to provider of managed facility and energy services. We are delighted to partner with the Mantis team to build on their successes to date and accelerate the company’s growth.”

Houlihan Lokey served as the exclusive financial advisor to O2 and Mantis Innovation. The transaction further strengthens Houlihan Lokey's leadership and highlights its continued momentum in the business services field.