Vector Capital Mergers and Acquisitions Summary

Private Equity Firm Profile

In the last 3 years, Vector Capital has acquired 7 companies. It has also invested in 2 others.

Vector Capital’s most common sectors for investment aresoftware (36%) and internet software and services (23%) . The Firm’s most common investment types include going private (34%) and secondary buyout (18%). In total, Vector Capital has invested in 15 US states and 6 different countries. Its largest (disclosed) acquisition occurred in 2021 when it acquired Cornerstone OnDemand for $5.2B.

In the last 3 years, Vector Capital has exited 7 companies. The Firm’s most common exit type is trade sale (59%). Vector Capital’s largest (disclosed) exit occurred in 2020 when it sold Saba Software for $1.4B.

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M&A Summary

  • M&A Total Activity73
    • M&A Buy Activity44
    • M&A Sell Activity29
  • Total Sectors Invested 10
  • Total Countries Invested 6
  • M&A Buy/Sell Connections 33
  • M&A Advisors 12

Vector Capital

One Market Street, Steuart Tower, 23rd Floor,
San Francisco, California 94105
United States
(415) 293-5000
www.vectorcapital.com

Vector Capital is a private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector targets both public and private company investments. Prospective businesses typically have strong customer bases, high gross margins, and at least $30 million in sales. Vector Capital was formed in 1997, after spinning out from Ziff Brothers Investments. The Firm is based in San Francisco, California.


Investment Criteria

Sectors of Interest: Business Services, Communications, Environmental, Healthcare Services, Information Technology, Internet Software and Services, Media, Safety/Security, Software, Technology Hardware

Target Transaction Types: Buyout (LBO, MBO, MBI), Divestiture, Going Private, Growth Capital, Recapitalization, Secondary Buyout, Stake Purchase, Venture, Merger

Geographic Preferences: East US, Midwest US, South US, West US, Canada

Transaction Criteria Min Max
Target Revenue 30 -
Target EBITDA - -
Investment Size - -
Enterprise Value - -
values in millions of USD

M&A Summary

Buy vs Sell

Year ≤ '17 '18 '19 '20 '21 '22 T
Buy (2.2/yr) # 33 3 2 3 2 1 44
vol $6.1B $100M $9.7B $15.9B
Sell (1.6/yr) # 21 1 4 2 - 1 29
vol $3.7B $185M $1.4B $5.3B
  73

Most Recent M&A

Company Date Value Type
Malwarebytes Corp. 2022-09-21 - Growth Capital
Santa Clara, California · www.malwarebytes.com
WatchGuard Technologies, Inc. 2022-04-27 - Secondary Buyout
Seattle, Washington · www.watchguard.com
Cornerstone OnDemand, Inc. 2021-08-05 5.2B USD Going Private
Santa Monica, California · www.cornerstoneondemand.com
McGraw-Hill Education, Inc. 2021-06-15 4.5B USD Secondary Buyout
New York, New York · www.mheducation.com
Mood Media Corp. 2020-12-01 - Buyout (LBO, MBO, MBI)
Austin, Texas · www.moodmedia.com
MarkLogic Corp. 2020-10-07 - Buyout (LBO, MBO, MBI)
San Carlos, California · www.marklogic.com
Emarsys eMarketing Systems AG 2020-10-01 - Add-on Acquisition
Vienna, Austria · www.emarsys.com
Patron Technology, Inc. 2020-09-24 - Secondary Buyout
Wexford, Pennsylvania · www.patrontechnology.com
Saba Software, Inc. 2020-02-24 1.4B USD Add-on Acquisition
Redwood Shores, California · www.saba.com
MoxiWorks 2019-09-12 - Growth Capital
Seattle, Washington · www.moxiworks.com
View All >>

Portfolio M&A

Company Acquired Add-On/Sale Date #
Alvaria, Inc. 2019-01-02 Cicero - Intelligent Analytics Platform 2022-07-19 1
Chelmsford, Massachusetts · www.aspect.com Cary, North Carolina
Cornerstone OnDemand, Inc. 2021-08-05 SumTotal Systems LLC 2022-06-13 2
Santa Monica, California · www.cornerstoneondemand.com Gainesville, Florida · www.sumtotalsystems.com
McGraw-Hill Education, Inc. 2021-06-15 Busuu Online SL 2021-11-29 1
New York, New York · www.mheducation.com Madrid, Spain · www.busuu.com
Mood Media Corp. 2020-12-01 PlayNetwork, Inc. 2021-09-21 1
Austin, Texas · www.moodmedia.com Redmond, Washington · www.playnetwork.com
IPVALUE Management, Inc. 2014-07-07 Longitude Licensing Ltd. 2016-07-18 1
Santa Clara, California · www.ipvalue.com Dublin, Ireland · www.longitudelicensing.ie
Vispero 2015-09-01 Optelec BV 2015-11-16 1
St. Petersburg, Florida · www.vispero.com Barendrecht, Netherlands · www.optelec.com

M&A by Sector

Sector Current # Value All-time # Value
Software 5 (28%) 100M (1%) 16 (36%) 2.3B (14%)
Internet Software and Services 4 (22%) 5.2B (52%) 10 (22%) 5.9B (37%)
Information Technology 4 (22%) 120M (1%) 9 (20%) 2.9B (19%)
Technology Hardware 1 (6%) - 3 (7%) 108M (1%)
Media 1 (6%) - 2 (4%) -
Education 1 (6%) 4.5B (45%) 1 (2%) 4.5B (28%)
Test/Measurement Equipment - - 1 (2%) 138M (1%)
Business Services 1 (6%) - 1 (2%) -
Consumer Products 1 (6%) - 1 (2%) -
Life Science - - 1 (2%) -
Total 18 $9.9B 45 $15.9B

Acquisitions By Geo

State/Country Current # Value All-time # Value
United States 15 (83%) 9.9B (100%) 37 (82%) 15.7B (99%)
  California 5 (28%) 5.2B (52%) 14 (31%) 6.0B (38%)
  Texas 1 (6%) - 4 (9%) 1.6B (10%)
  New York 2 (11%) 4.6B (47%) 3 (7%) 4.8B (30%)
  Washington 2 (11%) - 3 (7%) 151M (1%)
  Connecticut - - 3 (7%) 1.6B (10%)
  Massachusetts 1 (6%) 100M (1%) 1 (2%) 100M (1%)
  Pennsylvania 1 (6%) - 1 (2%) -
  Illinois 1 (6%) - 1 (2%) -
  Florida 1 (6%) - 1 (2%) -
  Arizona 1 (6%) - 1 (2%) -
  North Carolina - - 1 (2%) 780M (5%)
  Maryland - - 1 (2%) 634M (4%)
  Utah - - 1 (2%) -
  New Jersey - - 1 (2%) -
  Georgia - - 1 (2%) -
United Kingdom 2 (11%) - 2 (4%) -
Israel 1 (6%) - 2 (4%) 160M (1%)
Canada - - 2 (4%) 77M (< 1%)
  Quebec - - 1 (2%) 77M (< 1%)
  Ontario - - 1 (2%) -
France - - 1 (2%) -
Austria - - 1 (2%) -
Domestic 15 (83%) 9.9B (100%) 37 (82%) 15.7B (99%)
Cross-border 3 (17%) - 8 (18%) 237M (1%)
Total 18 $9.9B 45 $15.9B

Acquisitions by Deal Type

Type Current # Value All-time # Value
Going Private 2 (11%) 5.3B (54%) 15 (33%) 11.2B (70%)
Secondary Buyout 7 (39%) 4.6B (46%) 8 (18%) 4.6B (29%)
Buyout (LBO, MBO, MBI) 2 (11%) - 8 (18%) 138M (1%)
Growth Capital 5 (28%) - 6 (13%) -
Divestiture 2 (11%) - 4 (9%) -
Venture - - 2 (4%) -
Recapitalization - - 1 (2%) -
Stake Purchase - - 1 (2%) -
Total 18 $9.9B 45 $15.9B

Exits by Deal Type

Type Total # Value
Trade Sale - Public Company 11 (38%) 3.8B (73%)
Secondary Sale 8 (28%) -
Trade Sale 7 (24%) 1.4B (27%)
Bankruptcy 1 (3%) -
Merger 1 (3%) -
Stake Sale 1 (3%) -
Total 29 $5.3B

Top M&A Advisors

Financial Deals
William Blair & Co. LLC
1
Harris Williams & Co.
1
Citigroup Investment Banking
1
Legal Deals
Kirkland & Ellis LLP
4
Paul Hastings LLP
4
Sidley Austin LLP
3

Deal Values

buy # Total
> $1B 4 $12.6B
$100M to $1B 11 $3.1B
< $100M 2 $177M
TOTAL $15.9B
Largest Cornerstone OnDemand, Inc.
$5.2B (2021-08-05)
sell # Total
> $1B 2 $2.4B
$100M to $1B 7 $2.8B
TOTAL $5.3B
Largest Saba Software, Inc.
$1.4B (2020-02-24)

M&A Connections

Deals
Acquired from
Investor(s)
20%
9 (20%)
Strategic(s)
9%
4 (9%)
Exited to
Investor(s)
31%
9 (31%)
Strategic(s)
62%
18 (62%)

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