Houlihan Lokey Advises Sparq

Houlihan Lokey is pleased to announce that Sparq, the leading U.S.-based provider of outsourced digital engineering for technology-driven and Fortune 1000 companies, has received a majority investment from funds managed by Harvest Partners Ascend, LP. The partnership will allow Sparq to further scale its operations and digital service offerings and create high-quality technology career opportunities in places where they otherwise might not exist. Bain Capital Double Impact, Sparq’s current investment partner since 2019, will remain an investor in the company.

Founded in 2004 and based in Atlanta, Georgia, Sparq empowers agile and experienced software engineering teams across the country with a disciplined, product-oriented approach and the collaborative infrastructure to meet and exceed customer needs. The company offers a growing suite of software engineering capabilities, including product strategy and design, digital engineering, application modernization, artificial intelligence solutions, and data and analytics services. Sparq will continue to operate under the current management team, who remain significant investors in the business.

Sparq is a leading provider of outsourced digital engineering to build, deploy, and support digital applications, products, and experiences. Sparq’s unique U.S.-centric, 100% remote delivery model accesses untapped and underleveraged technology talent and eliminates the obstacles of distant time zones, language, and geopolitical risks. Scrum-as-a-Service®, Sparq’s unique engagement framework for agile software engineering, provides rapid and flexible deployment of multidisciplinary teams via an elastic consumption model and predictable monthly pricing. The company provides world-class solutions for technology-driven and Fortune 1000 clients across various industries, including logistics and transportation, healthcare, high tech, and financial services.

Harvest Partners Ascend was launched by Harvest Partners, LP, in 2022 to act on compelling platform investment opportunities at the lower end of the middle market. It focuses on investments in lower-middle-market companies in the business and technology services sectors. Founded in 1981, Harvest Partners, LP, is an established New York-based private equity investment firm that focuses on investments in middle-market companies in the business services, industrial services, consumer, healthcare, industrials, and software industries.

Bain Capital Double Impact is the impact investing strategy of Bain Capital, a leading global private investment firm. Bain Capital Double Impact leverages deep industry experience and an active, value-added approach to build great companies that deliver both competitive financial returns and meaningful, measurable social and environmental good. Bain Capital Double Impact partners with companies across three themes—health and wellness, education and workforce development, and sustainability to create long-term value and meaningful social impact at scale.

Houlihan Lokey served as the exclusive financial advisor to Sparq.

Houlihan Lokey’s Global IT Services team is among the most active M&A advisors in the market, having closed 14 transactions in the past 12 months. This most recent transaction further strengthens Houlihan Lokey’s leadership in the digital engineering universe and highlights continued momentum and leadership in the IT services sector, which includes digital transformation, cloud services, data analytics, and IT resourcing.