Add-on acquisition
An add-on acquisition, also called a bolt-on, is a company bought by a platform company that a private equity firm or other sponsor already owns. Add-ons are usually smaller than the platform and are combined with it to add products, customers, locations or capabilities. Because small companies tend to sell at lower valuation multiples than the combined business can command, add-ons are central to buy-and-build strategies.
In DFX data
Add-on transactions are counted apart from platform deals, and in the DFX rankings an add-on counts toward the sponsor that owns the platform making it.