Supply Side: North American Rail Solutions/Condor, Railroad Software/Arcadea Group

North American Rail Solutions acquires Condor Signals and Communications (Condor) of Ontario, Canada. Also, Cummings, Ga.-based Railroad Software, Inc., is backed by Arcadea Group, a global software investor.

North American Rail Solutions / Universal Rail Systems / Condor

North American Rail Solutions, through its Edmonton, Alberta subsidiary, Universal Rail Systems, reported on April 9 its acquisition of Condor, a provider of rail signals and communications services across North America. Condor will operate as part of the signals group at Universal Rail Systems, which provides turnkey railroad construction, repair, maintenance, inspection, and terminal services at industrial, Class I railroad, government, and transit sites in Canada. It will maintain its offices in Oakville, Ontario, and continue to provide such manufactured products as rail switch heaters, bungalows, and racking systems under the “Condor” trade-name.

“Adding Condor to our Universal Rail Systems portfolio expands our signals capabilities not only in Canada, but into the U.S. markets as well,” said Thomas Lucario, CEO of North American Rail Solutions. “It is an example of our ongoing commitment to growth and support to our customers across North America.”

“When reflecting on the transition of Condor, I feel a deep sense of joy and pride,” said Condor’s outgoing owner, Maggie DiPede-Sullivan. “Entrusting the future of Condor to a distinguished member of the rail supply industry fills me with confidence. It’s not just about passing on the baton; it’s about ensuring a prosperous future for our dedicated employees and the business that has been a significant part of my and my late husband’s (Michael Sullivan) life.”

In 2021, DFW Capital Partners partnered with the management team of American Track through acquisition and established the parent company, North American Rail Solutions, which operates out of 25 offices in the U.S. and Canada, and serves a wide range of industries, including manufacturing, petrochemical, mining, agricultural products, food and beverage, basic raw materials, ports, transload facilities, transit, and Class I and short-line railroads.

Railroad Software / Arcadea Group

Railroad Software, a rail operations software and managed services provider, on April 9 announced a majority recapitalization with Arcadea Group. The transaction will see Railroad Software founder and former CEO Jeff Birmingham retaining “a significant stake in the business” and continuing as a Board Director, while Steve Yoder, who was appointed Railroad Software CEO in fall 2023, will remain in his role.

“The past 10 years have seen Railroad Software growth from an idea to an at-scale, high-growth provider of industry leading software,” Jeff Birmingham said. “While we’ve achieved so much on our own, I knew there would come a time when I would want a partner to help me scale and preserve the business over the long-term. Having been approached regularly by investment firms over the past few years, Arcadea stood out as the right partner due to their emphasis on brand and product identity, permanent holding profile, and their focus on customer and team success.”

“Over the past two years studying the global rail and transportation market, we found that most software providers fall into two buckets: the first includes outdated technology with low growth; the second consists of venture-backed entrants without industry experience nor sustainable cultures (high-cash-burn, risky, and short-term strategies),” said Paul Yancich, Managing Director and Co-founder of Arcadea Group. “In contrast, Jeff, Steve (CEO), Nathan Shirhall (CTO), and the team at Railroad Software have the unique mix of industry credibility and modern technical underpinnings….”

Daniel Eisen, Managing Director and Co-founder of Arcadea Group, added: “Jeff has built an incredible business, one that focuses first and foremost on customer value-add. His capital efficient approach to growth perfectly matches our ethos and we are honored to have been chosen to steward the business over the coming decades.”