Arcadea Group Backs Railroad Software to Fuel Growth and Product Innovation

ORLANDO, Fla. & ATLANTA & TORONTO--(BUSINESS WIRE)--Railroad Software, a leading, high-growth provider of rail operations software & managed services, announces a majority recapitalization with Arcadea Group, a global, growth-oriented permanent-hold software investor.

The transaction will see Jeff Birmingham, founder and former CEO of Railroad Software, retain a significant stake in the business and continue guiding the business as a Board Director. Steve Yoder, who was appointed CEO in Fall of 2023, will continue in his role, leading the business through the next leg of the company’s journey.

“The past ten years have seen Railroad Software growth from an idea to an at-scale, high-growth provider of industry leading software. 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.,” said Jeff Birmingham, Founder and Past CEO. “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.”

Paul Yancich, Managing Director and Co-founder of Arcadea Group, said, “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global rail and transportation market, we found that most software providers fall into two buckets: the first includes outdated technology with low growth; the second consists of venture-backed entrants without industry experience nor sustainable cultures (high-cash-burn, risky, and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). 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, which in combination have led to incredible growth and enduring customer happiness.”

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.”

About Railroad Software

Railroad Software was founded in 2010 by Jeff Birmingham who recognized the need for digital solutions for FRA compliance and rail yard management in the industry. The company offers a suite software and hardware products for the rail industry including, TrackAsset (linear asset and inspection management), TrackHOS (Hours of Service), RTMS (rail terminal management), and, through its brand Automated Rail, industry leading AEI & related hardware readers and services.

www.railroadsoftware.com
www.automatedrail.com

About Arcadea Group

Arcadea Group invests in high-quality, strongly growing software companies over extremely long durations. Based in Toronto and investing globally, Arcadea leverages its significant permanent capital base to focus exclusively on businesses with long-term potential and ambitions.

www.arcadeagroup.com