Houlihan Lokey Advises Piano Software
Houlihan Lokey is pleased to announce the successful placement of $120 million of committed capital for Piano Software, Inc., (Piano), a portfolio company of Updata Partners (Updata). The financing consisted of a $75 million senior term loan and a $45 million Series D equity financing. Proceeds from the transaction were used to refinance existing indebtedness and provide working capital for the company’s operations. The transaction closed in December 2024.
Headquartered in Philadelphia, Piano is a leading end-to-end customer experience, analytics, and subscriber management SaaS platform for managing millions of individualized direct-to-consumer relationships. The company has strong roots in the media industry and is aggressively expanding within financial services, travel, retail, and other verticals.
Updata is a leading technology-focused growth equity firm in Washington, D.C., with more than $1.5 billion in committed capital. Led by an investment team averaging more than 25 years of technology experience, Updata invests in high-growth B2B software and software-driven businesses where the combination of capital and operating experience will help accelerate success.
In 2018, Updata made its initial investment in Piano. Since making the investment, the company and sponsor have executed several strategic acquisitions to: (i) expand the company’s product offering, (ii) strengthen the company’s customer base outside the media sector, and (iii) improve Piano’s ability to cross-sell its products across the customer base. After achieving their acquisition goals, management and Updata made the decision to seek a new, long-term debt financing partner. The company engaged Houlihan Lokey to find a comprehensive refinancing solution with an ARR-based structure that would provide operational freedom to continue to focus on its growth-oriented business plan.
Houlihan Lokey ran a comprehensive financing process in which it approached technology and software-focused lenders to evaluate an ARR-based structure. In conjunction with a $45 million Series D equity financing led by Updata, Houlihan Lokey was able to leverage competitive tension among senior lenders to secure attractive financing terms. The key sponsor and company objectives that were met included: (i) achieving an ARR-based covenant structure, (ii) right-sizing the leverage profile of the business, and (iii) finding a new, long-term financing partner aligned with the sponsor’s and the company’s goals.
Houlihan Lokey’s Capital Markets Group served as the exclusive placement agent to Piano, assisting the company in arranging, structuring, and negotiating the debt financing. This is the fifth time Houlihan Lokey has advised Piano in connection with a financing or acquisition.
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