3i Group invests $179M in Magnitude Software

Deal Financials

Implied Enterprise Value: $340M
Recapitalization: $179M
Enterprise Value / Revenue: –

Transaction Overview

• On March 19, 2019, 3i Group invested $179M in Magnitude Software alongside Chairman and CEO of Magnitude Chris Ney and other senior executives.
• The UK based PE firm looks to help facilitate global expansion amid the worldwide data revolution.

Magnitude Software Overview

• Magnitude Software provides access to insights from application data through its reporting and analytics, master data management, product information management, SAP productivity, and data connectivity solutions.
• As an SAP focused software company, Magnitude Software has been able to create enterprise value through acquisition and careful integration behind its CEO Chris Ney.
• Over the last three years, Magnitude Software has tripled revenue, profits, and its overall global footprint due to its product expansion strategy that aimed to complete the end-to-end information management experience for its customers.

Global Acquisition Strategy

• 3i group being a leading international investor provides global access to effective bolt-on acquisitions that will allow Magnitude to enter its next growth stage.
• The $179M investment will be used to continue the exceptional revenue and profit growth through internal product innovation and executing strategic acquisitions, further expanding the company’s footprint globally as businesses continuously generate more data that needs to be analyzed.

Key Takeaways

• Ecosystem focused software companies can create value through M&A with niche and differentiating solution providers as Magnitude Software has done with deals like Innowera LLC, Every Angle Software Solutions BV, and Z Option, Inc.
• The recent consolidation in this space headlined by Salesforce’s acquisition of Tableau and SAP’s acquisition of Qualtrics highlights a need for convenient accessibility between applications that Magnitude Software aims to expand across ecosystems.

Magnitude Transaction History

TBP was NOT an advisor to this transaction.