Hansen begins buying spree

Software company acquires Spear and is preparing to buy two other tech firms.

By Clint Swett -- Bee Staff Writer
Published 2:15 am PDT Thursday, April 20, 2006

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Flush with financial backing from its new majority owner, Hansen Information Technologies has purchased a San Francisco software company and expects to acquire two more firms within the next few months.

Hansen Chief Executive Chuck Hansen said Wednesday his Rancho Cordova-based company bought privately held Spear Technologies Inc., a $10 million firm that makes software for managing large public transportation maintenance operations. Terms of the deal were not disclosed.

Hansen itself was purchased in February by Golden Gate Capital, a $2.6 billion San Francisco equity fund that paid more than $50 million for a majority stake.

The Spear deal appears to be the first indication that acquisitions such as the Hansen-Golden Gate deal could end up helping to bolster tech firms in the Sacramento region.

"By getting an infusion of cash (from Golden Gate) companies like Hansen can acquire other companies," said Oleg Kaganovich, chief executive of the Sacramento Area Regional Technology Alliance. "That feeds on itself. And as they grow the can acquire even more companies."

Like Hansen, Spear focuses on software to manage public infrastructure, but their expertise doesn't overlap. While Hansen focuses on managing municipal systems such as sewer and water systems and streamlining the building permit process, Spear goes after transportation.

Among its customers are Amtrak, New York City Transit, the San Francisco Municipal Railway and the Stockton-based San Joaquin Regional Transit District.

Those organizations use Spear technology for such tasks as scheduling track and equipment maintenance and keeping up with parts.

Bob Kuhn, director of maintenance for the San Joaquin RT, described Spear's system as a vital part of his organization's efforts to keep its buses out of the shop and on the street.

Chuck Hansen said Spear first came to his attention in 1997 when his company was considering branching out into the public transportation business.

"We decided not to enter the transportation sector because they were such a substantial player," he said.

About 45 Spear employees will remain in San Francisco, and 10 will transfer to Rancho Cordova, Hansen said.

He said he expects to announce another acquisition before the end of the month, and said his company already is set to open negotiations to acquire yet another firm.

He wouldn't describe the companies other than to say each employed between 75 and 90 workers. He said that adding three companies plus its own expected growth could bring Hansen's revenue to more than $80 million in 2006.

Much of Hansen's acquisition spree can be credited to Golden Gate Capital. "They've definitely broadened our horizons by recapitalizing us and financing our growth," he said.

About the writer:

• The Bee's Clint Swett can be reached at (916) 321-1976 or cswett@sacbee.com.

THE COMPANIES at a glance

HANSEN INFORMATION TECHNOLOGIES

Chief executive: Chuck Hansen

Founded: 1983

Headquarters: Rancho Cordova

Business: Software for managing public infrastructure such as sewer, water and electrical systems

Revenue in 2005: $30 million

Number of employees: 260

SPEAR TECHNOLOGIES INC.

Founder and chairman: Mike Thomas

Founded: 1997

Headquarters: San Francisco

Business: Software for managing public bus, subway and rail systems

Revenue in 2005: $10 million

Number of employees: 55