Vista Equity Partners

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Vista Equity Partners Management, LLC is an American private equity firm that invests in software, data, and technology-enabled businesses.[4][failed verification] With over $100 billion in assets under management (AUM), it is one of the largest private equity firms in the world.[5] Vista Equity Partners has invested in hundreds of technology companies, including Citrix, SentinelOne, and Marketo, and has achieved many accolades in the space, most recently being named as 2023's Global Technology Private Equity Firm of the Year by Private Equity International.[6]

Vista Equity Partners Management, LLC
Company typePrivate
IndustryPrivate equity
Founded2000; 24 years ago (2000)
FounderRobert F. Smith[1]
Headquarters,
US
Number of locations
5
Key people
David Breach (president)
AUMUS$100 billion (2023)[2]
Number of employees
503 (2022)[3]
Websitevistaequitypartners.com

In September 2019, Vista Equity Partners raised $16 billion for their flagship fund, which was the largest technology-focused fund ever raised by an independent private equity firm at the time. In June 2023, Vista Equity Partners was ranked 16th in Private Equity International's PEI 300 ranking of the largest private equity firms in the world.[7] The company has offices in several cities, including Austin, Chicago, New York, and San Francisco.[8][9][10]

History

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2000–2009

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Vista Equity Partners was founded in 2000 by American businessman and investor Robert F. Smith, who serves as chairman and CEO. Vista opened its first office in San Francisco in 2000.[11] In November 2008, the company closed a funding round for its first institutional fund with a total of $1.3 billion raised.[12]

Vista is known for applying detailed scrutiny in human resources when investing in firms, in a procedure it calls Vista Standard Operating Procedures.[13]

2010–2019

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In 2010, Brian N. Sheth was promoted to president and awarded the title of co-founder of the firm. He remained in this role until his departure in 2020.[14][15]

In 2011, the company opened an office in Austin, Texas.[11] Over the years, Vista has added several private equity funds and credit funds to its portfolio,[16][17][18] including its first fund, the Vista Credit Opportunities Fund, which raised $196 million.[18][19] During that time, Vista opened several funds that specifically targeted middle-market companies[20] and emerging technology companies.[21] The company also has a permanent capital investment fund, Vista Equity Partners Perennial, which focuses on growing vertical market software companies.[22][23]

2020–present

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As of May 2020, Vista had more than $57 billion in capital commitments.[24] In 2020, Vista joined Diligent Corporation's modern leadership initiative and pledged to create five new board roles among its portfolio companies for racially diverse candidates.[25][26]

As of June 2021, Vista had more than $81 billion in assets under management.[27] In August 2021, its chief operating officer David Breach was announced as president of Vista, the previous incumbent, Brian N. Sheth, a Vista co-founder, resigning in 2020 following the criminal tax investigation of CEO Smith.[28]

In January 2022, it was announced that Citrix Systems had been acquired in a $16.5 billion deal by affiliates of Vista and Evergreen Coast Capital. The all-cash acquisition will see Citrix merge with TIBCO, a Vista portfolio company.[29]

In August 2022, Vista agreed to acquire tax automation software platform maker Avalara, Inc. for $8.4 billion including debt.[30]

As of August 2023, Vista Equity Partners had over $100 billion in assets under management.[31]

In October 2023, Vista, along with Blackstone acquired Energy Exemplar, an Australian energy software company for approximately $1.6 billion.[32]

In October 2020, Vista's CEO Robert F. Smith and investor Robert T. Brockman were named in a tax evasion case.[33][34] That month, Smith signed a non-prosecution agreement with the IRS, agreeing to pay $139 million and testify against Brockman.[33]

Investments

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2000–2009

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In August 2000, Vista invested in SourceNet Solutions, a provider of finance and accounting business process outsourcing services.[35][36] Between 2001 and 2005, Vista invested in several software companies, including BigMachines, a provider of product configuration software,[37] and Aspect Communications, a contact center technology company,[38] among others.[11] In 2004, Vista acquired Applied Systems, Inc., an insurance software company.[39] In 2005, Vista invested in MDSI Mobile Data Solutions.[40]

In 2006, Vista invested in Reynolds and Reynolds, an auto technology company.[41] The following year, Vista acquired Indus International, which it later merged with MDSI Mobile Data Solutions to form Ventyx, Inc.[40] That year, the company also invested in SirsiDynix, a library software company.[42][43] In 2008, Vista acquired P2 Energy Solutions Inc, a software company that helps oil and gas producers keep track of drilling leases.[44] The following year, the company acquired SumTotal Systems from Accel Partners and Kohlberg Kravis Roberts,[45][46] as well as MicroEdge from Advent Software.[47]

2010–2019

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In 2011, the firm acquired multiple companies, including Sage Healthcare, an electronic health records company,[48] which it renamed Vitera Healthcare Solutions.[49]

Between 2012 and 2013, Vista acquired companies including Bullhorn, Inc. a CRM software provider;[50][51] Misys, a British software company;[52] Websense;[53][54][55] and Active Network, Inc, an online event registration service.[56][57] Between 2014 and 2015, Vista acquired Automated Insights, a software company specializing in natural-language generation;[50] Main Street Hub, a social-media company;[58] PowerSchool, a provider of educational technology, and TIBCO Software,[59] a company that specializes in big data and software integrations, among others.[60]

In 2016, Vista acquired Solera Holdings for $6.5 billion[61][62] and Cvent for $1.65 billion,[63] and announced agreements to acquire Marketo (marketing automation software),[64] Ping Identity (single sign-on digital security),[65] and GovDelivery (technology platform for government bodies).[66] The company invested in Granicus[67] and Vivid Seats that same year.[68] Vista subsequently merged GovDelivery and Granicus into one company.[69] In 2017, Vista acquired several software companies, including NAVEX Global.[70] That year, the company also invested in Upserve, a restaurant software provider, and Market Track.[71]

In 2018, Vista acquired Apptio, a cloud-based business management software,[72] Alegeus,[73] and entered into an agreement to acquire Mindbody for $1.9 billion.[74] That year, Vista invested in several other companies, including Wrike, a provider of project management software.[75] In 2019, Vista bought a majority stake in Acquia,[76] and completed its first IPO when it took Ping Identity public.[77] Also in 2019, Vista purchased Sonatype, a cybersecurity, open-source automation company who develops Sonatype Nexus[78] and Accelya, a technology provider for the airline industry.[22]

2020–present

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In 2020, Vista acquired Tripleseat, a web-based sales and event management company,[79] and purchased a 2.32% stake in Jio Platforms.[80] In November 2020, Vista acquired CRM-software provider Pipedrive for $1.5 billion.[81] In the same month, Vista also acquired customer success company Gainsight for $1.1 billion.[82]

In April 2021, Vista completed its acquisition of Pluralsight for $3.5 billion; Vista wrote down the entire equity value of the acquisition later in May 2024.[83][84] In September 2021, Vista acquired a majority stake in Drift, a sales and marketing software company, valued at over $1.0 billion in the deal.[85] Also in September, Vista announced it intended to acquire Blue Prism for £1.095 billion ($1.5 billion), and to merge it into Tibco[86] but Blue Prism was ultimately bought by SS&C Technologies in March 2022 for approximately $1.6 billion (£1.25 billion).[87][88]

In October 2023, EngageSmart, a provider of software and integrated payments solutions, announced that it would be taken private by Vista for $4 billion.[89]

Divestments

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In December 2004, Vista sold SourceNet Solutions to Mellon Financial.[36]

Between 2010 and 2013, Vista sold several companies, including Ventyx to ABB Group for over $1 billion,[40] BigMachines to Oracle for over $400 million,[90] and P2 Energy Solutions to Advent International.[91] In September 2014, Vista announced the sale of MicroEdge to Blackbaud for $160 million.[92] In 2015, the company sold Websense to Raytheon for $1.9 billion.[93]

Between 2015 and 2020, Vista divested other companies, including selling BullHorn, Inc to Insight Venture Partners,[94] selling parts of Active Network to Global Payments Inc.[95] and selling NAVEX Global to BC Partners.[96] During this time, Vista also sold SirsiDynix to ICV Partners,[43] and Main Street Hub to GoDaddy for $125 million.[97] In 2018, Vista sold Marketo to Adobe Systems for $4.75 billion.[98]

In 2020, Vista sold Vertafore to Roper Technologies for $5.35 billion[99] and Regulatory DataCorp to Moody's for $700 million.[100] In 2021, Vista divested from Aspira,[101] a software provider and Numerator, a market intelligence firm Vista had backed since 2017.[102] Also in 2021, Vista sold Allocate, which it acquired in 2018, to RLDatix for $1.3 billion.[103]

Philanthropy

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In September 2017, Vista and their companies pledged $1 million to assist the Akshaya Patra Foundation in delivering meals to Indian school children.[104]

References

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