Private equity firm Great Hill Partners has invested $250 million in Auvik and acquired a majority stake in the cloud-based network management software provider for MSPs and IT departments.
This is technology M&A deal number 421 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Auvik's overall company valuation was not disclosed, but CEO Marc Morin confirmed to ChannelE2E that the investment represents a majority stake in the software business.
Auvik, founded by Morin, Alex Hoff, and David Yach, develops cloud-centric software that allows MSPs and IT professionals to manage third-party networking hardware from Cisco Systems, Hewlett Packard Enterprise (HPE) and numerous other companies.
Auvik originally positioned its software for MSPs, but the company has expanded its base to all types of IT teams -- including corporate IT departments. The company previously raised $15.6 million in Series C funding in May 2018.
Auvik Receives Private Equity Investment: Executive Perspectives
In a prepared statement about the Great Hill investment, Auvik's Morin said:
“Network management should be easier. That has been Auvik’s rallying cry since 2011 when we set out on a quest to give IT professionals, and the organizations they support, something better - something faster and easier. By partnering with Great Hill Partners, a growth investor with deep domain experience and expertise, and our continuing investor Celtic House Venture Partners, we are confident that we will be able to accelerate our impact and bring reliable IT solutions to IT professionals everywhere.”
Added Drew Loucks, a managing director at Great Hill Partners:
“Auvik has a truly innovative approach to ITOps and has developed powerful software that IT teams not only enjoy using, but is essential to their operations. We have been very impressed with the company’s customer satisfaction rating and reputation and we believe the team is well positioned to capture a significant portion of the evolving market moving forward.”
Great Hill's Investment Experience
Neither Auvilk nor Great Hill specifically mentioned an MSP partner strategy in the investment announcement. But in a follow-up email interview about the deal, Morin emphasized Auvik's continued commitment to MSPs.
Also, Great Hill has experience investing in and around the MSP technology market. The private equity firm's noteworthy investments have included:
Multiple advisor companies were involved in the Auvik-Great Hill deal. For instance:
- AQ Technology Partners served as financial advisor and Dentons Canada LLP served as legal counsel to Auvik.
- Choate, Hall & Stewart LLP and Blake, Cassels & Graydon LLP served as legal counsel to Great Hill Partners.
Ahead of the coronavirus pandemic, there were rumors that an MSP software company may acquire Auvik. But the rumors quieted down when the pandemic began to trigger business lockdowns in North America.
