Dublin-based software company SoftCo has been acquired by private equity firm Keensight Capital in a deal that industry sources estimated to be worth more than €100 million.
The management team, led by CEO Anton Scott, is also investing.
The exact figure on the deal was not disclosed by either party but industry sources said the deal value was more than €100 million. That should mean a significant payout for cofounders Jim Coffey and Susan Spence, who before the deal owned 87.5 per cent of the company between them. Mr Scott and sales director Killian McCarthy held the remaining 12.5 per cent.
The company intends to accelerate its expansion into the North American market, and continue investment in the technology platform to support SoftCo’s growth plans, it said.
Mr Coffey said they had approaches from other potential acquirers. “Keensight Capital showed its ability to support the existing management team in achieving the next phase of growth,” he said. “This was a major factor in our decision to select them.”
Established in 1990 by Mr Coffey and Ms Spence, SoftCo’s procure-to-pay solution is a software platform that automates key financial processes from procurement, invoice automation, supplier management and reporting.
The software can make financial processes more efficient, give companies more control and visibility over spend and reduce the need for manual intervention. Its annual recurring revenues have grown at more than 25 per cent, a growth rate that is expected to increase in the coming years. Headquartered in Dublin and with offices in the UK, US and Finland, SoftCo has more than one million business users worldwide, including PwC, Volkswagen, Primark (owner of Penneys), Logitech and the Finnish government.
“We are proud of how SoftCo has grown and as we step back, the company has never been as strong. SoftCo has the best technology in the market and a growing global customer base,” Ms Spence said.
Keensight Capital has significant experience in the source-to-pay sector, which will benefit SoftCo in its next phase of growth.
“Over the years, we got to know the company and its team well, and have been continuously impressed by SoftCo’s unique know-how and leadership in the sector. This has allowed SoftCo to achieve strong profitable growth and remarkable expansion in North America,” said Yuri Mikhalev, partner at Keensight Capital. “Leveraging our deep sector expertise from successful investments in Onventis and e-Attestation, we understand SoftCo’s market and are well placed to contribute to the company’s strategic vision and growth.”
Keensight is one of the leading European growth buyout firms, the company said, and is committed to supporting entrepreneurs as they implement their growth strategies. The company tends to invest for the long term in profitable companies with revenues of between €10 million and €400 million. According to the firm, it draws on its expertise in the technology and healthcare sectors, to identify what it called the best investment opportunities in Europe and works closely with management teams to develop and achieve their vision.
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