Growth Capital • Internet Software and Services

FTV Capital and EdgeStone Capital Partners Invest In Varicent

On October 27, 2009, growth capital firm FTV Capital and private equity firm EdgeStone Capital Partners invested in internet software and services company Varicent

Investment Context
  • This is FTV Capital’s 5th and EdgeStone Capital Partners’ 2nd transaction in the Internet Software and Services sector.
  • This is FTV Capital’s 1st and EdgeStone Capital Partners’ 17th transaction in Canada.
  • This is FTV Capital’s 1st and EdgeStone Capital Partners’ 14th transaction in Ontario.
Investment Fate
  • Varicent was sold to a publicly-traded strategic buyer in 2012.
  • Varicent was divested to a consortium of buyers in 2019.

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Investment Summary

Date October 27, 2009
Target Varicent
Sector Internet Software and Services
Investor(s) FTV Capital
EdgeStone Capital Partners
Deal Type Growth Capital

Target Company

Varicent

Toronto, Ontario, Canada
Varicent is a provider of Smart SPM (sales performance management) cloud-enabled software for mid-market and enterprise companies in any industry. Its augmented intelligence-powered platform enables customers to quickly and easily see and address sales trends, problem areas, and opportunities, by predicting outcomes and prescribing actions to optimize revenue. Varicent pioneered incentive compensation and sales performance software helps customers manage highly complex compensation plans, territories and revenue goals. Varicent was founded in 2003 and is based in Toronto, Ontario.
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Investors Overview 2

Investor

FTV Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1998
PE ASSETS 6.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

FTV Capital is a multi-stage private equity firm focused on providing capital to high-growth companies. FTV generally seeks to invest in software, business services, and financial services companies which enable financial institutions to expand and to operate more efficiently. Investment proceeds are typically used to fund rapid organic growth, provide shareholder liquidity, pursue add-on acquisitions, or acquire divestitures. FTV prefers to act as the lead or control investor and targets equity commitments of $10 to $85 million per transaction. FTV Capital was established in 1998 and was formerly known as FTVentures. FTV Capital is based in San Francisco with an additional office in New York City.


Deal Context for Investor #
Overall 50 of 133
Sector: Internet Software and Services 5 of 29
Type: Growth Capital 3 of 58
State: Ontario 1 of 2
Country: Canada 1 of 3
Year: 2009 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-07-08 VelocityShares

Darien, Connecticut, United States

VelocityShares LLC develops and distributes exchange traded products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-12-16 Castle Pines Capital

Englewood, Colorado, United States

Castle Pines Capital LLC, provides channel financing solutions to resellers in the technology industry.

Buy -
Investor

EdgeStone Capital Partners

Toronto, Ontario, Canada

Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 2.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

EdgeStone Capital Partners, Inc. is a private equity firm that targets middle market companies located in the Canada. The Firm targets to invest in companies with an EBITDA range $10 - $50 million and Enterprise value of $50 - $250 million. It seeks to invest in equity and equity related instruments and seeks to hold majority position and board seat in portfolio companies. Specific areas of interest include light manufacturing, business services, and consumer services. Type of transaction includes MBO, recapitalizations, growth capital, divestiture or non-core business and succession planning. EdgeStone Capital Partners, Inc. is based in Toronto, Ontario.


Deal Context for Investor #
Overall 21 of 24
Sector: Internet Software and Services 2 of 3
Type: Growth Capital 4 of 4
State: Ontario 14 of 15
Country: Canada 17 of 18
Year: 2009 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2009-08-19 RapidMind

Waterloo, Ontario, Canada

RapidMind provides a software development platform that allows software vendors to deliver high performance on multi-core and stream processors, including the GPU and the Cell BE. Without sacrificing development simplicity, RapidMind-enabled applications experience a dramatic leap in performance.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-04-12 Custom Direct

Joppa, Maryland, United States

Custom Direct is a provider of consumer checks, selling under multiple brands including the Check Gallery(R), Styles Checks(R) and Artistic Checks(R) names

Sell $98M