Private equity firm Vista Equity Partners has invested in BetterCloud, a cloud-based management platform for SaaS applications. Financial terms of the investment -- such as a dollar figure and a business valuation -- were not disclosed.
BetterCloud's existing investors -- including Accel, Bain Capital Ventures, Warburg Pincus and others -- remain minority investors in the business.
BetterCloud, founded in 2011, is based in New York. The company has 375 employees listed on LinkedIn. BetterCloud's cloud platform is designed to offer application insights, user lifecycle management and data protection, the company indicates.
The Vista Equity Partners investment comes as thousands of MSPs and MSSPs seek to discover and lock down SaaS applications for end-customers. Attune to the trend, Vista Equity rival Thoma Bravo recently invested in AppOmni, a SaaS security management platform. Moreover, upstarts such as Augmentt and SaaS Alerts are specifically designing their SaaS application security tools for MSPs.
Why Vista Equity Invested In BetterCloud: Executive Perspectives
Further describing the Vista Equity investment, BetterCloud CEO David Politis said:
"From day one, we've been laser focused on enabling companies to adopt best-in-breed SaaS applications in a secure and scalable way. This investment is a major milestone in that journey, and one that will allow us to continue to define and lead the SaaS Management category now and in the future. Vista is the perfect partner for BetterCloud given their tremendous experience and track record of investing in the best SaaS companies in the world, and their keen understanding of the value behind SaaS management. Together, we will continue to deliver on the promise of 'zero touch' SaaS management and elevate the role of IT in enterprises around the world."
Added Patrick Severson, co-head of Vista's Foundation Fund and senior managing director:
"As the suite of SaaS applications for the enterprise continues to grow and is further integrated into operations, application management has become mission-critical for businesses. David and the BetterCloud team have established the market leading SaaS management platform, empowering employees and creating a more secure SaaS ecosystem for all of their customers. We are thrilled to partner with them and look forward to a bright future together."
J.P. Morgan Securities LLC served as financial advisor and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP acted as legal counsel to BetterCloud. Kirkland & Ellis LLP served as legal advisor to Vista.
Vista Equity Partners: Private Equity Investor Background
Vista Equity Partners is a well-known private equity firm in-and-around the MSP software market. The firm is in the process of selling Datto to Kaseya; that $6.2 billion deal is expected to close in the Summer of 2022.
Additional Vista Equity investments have included:
- Desktop as a Service (DaaS) software provider Citrix Systems;
- Network security company Infoblox;
- Apple device management software company Jamf;
- IT monitoring software company LogicMonitor;
- Identity and access management (IAM) company Ping; and
- small business CRM software company Pipedrive,
Vista has more than $93 billion in assets under management as of December 31, 2021. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, permanent capital, credit, and public equity strategies.
Additional insights from Joe Panettieri.
