OSF Digital Secures $100M in Series C Financing

OSF Digital Secures $100M in Series C Financing

Deal Financials :

Implied Enterprise Value (EV): Undisclosed

Transaction Overview

  • On April 13, 2022, OSF Global Services Inc., d/b/a OSF Digital, announced it received $100m growth equity investment
  • OSF Digital operates as an independent Salesforce Platinum consulting partner specializing in global multi-cloud and B2B and B2C commerce and digital transformation capabilities
  • The round was led by Sunstone Partners and included existing investors: Salesforce Ventures and Delta-v Capital
  • The funding is intending to evolve the company’s service offerings and enable future M&A undertakings
  • This investment follows a series of acquisitions with the aim to bolster OSF’s standing as a leader in the digital commerce market

OSF Digital’s Activity in M&A

  • As Salesforce ecosystem has seen 25+ M&A transactions annually for last three years, the number of independent Salesforce consulting partners with size keeps dwindling despite the massive growth of the platform and ecosystem.
  • While other independent salesforce consulting companies have gotten acquired, OSF Digital has singularly expanded its footprint through organic and inorganic growth executing on a vision to create a global consulting partner as part of its original institutional financing organized by TBP.
  • OSF accelerated its growth as the premier consulting partner for Demandware after Salesforce acquired Demandware in 2016
  • As Salesforce looks to expand from $25B ARR to $50B in the next five years the annual revenue opportunity for both Global consulting partners and boutiques is many-fold that
  • Less than three weeks ago, OSF converted Netnomics into a subsidiary. Netnomics is a Germany-based Salesforce consultant focusing on implementation, customization, and marketing automation and services
  • In mid-January 2022, OSF Digital acquired Datarati, an Australia-based Salesforce partner, in order to expand to more verticals and improve commerce capabilities
  • Earlier in January, OSF also acquired FitForCommerce, an eCommerce consultant for retailers and providers, with the aim of establishing an end-to-end digital transformation service
  • In December 2021, OSF Digital acquired a stake of Teia Labs, a Brazilian developer of AI-based solutions for analysis of non-structured data. OSF invested with the intention of employing Teia’s AI-powered productivity tools to assist code developers in completing projects in shorter time periods
  • OSF Digital acted as a buyer in five other M&A transactions throughout 2021, acquiring various international companies that offer digital transformation and Salesforce marketing services

TBP’s Analysis of Salesforce Cloud

  • Salesforce has posted strong growth numbers as the digital transformation market has continued to grow
  • The most recent results announcement has indicated strong demand across industries and geographies: Q4 2021 featured growth of 23% in the Americas, 38% in EMEA and 20% in APAC
  • To keep up with the demand of implementing the $100M+ services engagements for its direct customer relationships, Salesforce recently acquired Traction on Demand
  • Just like OSF leveraged the growth from Salesforce’s $2.8Bn acquisition of Demandware in 2016, there is opportunity to build consulting partners specialized in Slack ($25Bn 2020) Tableau ($16B 2020) Mulesoft ($6.5B, 2018)
About True Blue Partners
True Blue Partners is a boutique M&A advisory firm that serves lower mid-market enterprise software, service and solutions companies. It brings the rigorous strategic and financial perspective of bulge bracket firms with a company building approach and a steadfast partnership that only an independent boutique firm can deliver. For more information please visit www.truebluepartners.com or email us at info@truebluepartners.com.

TBP is an investor in OSF