Permira Funds to Acquire Metalogix

Permira, an international private equity firm, announced that a company owned by the Permira funds has entered into a definitive agreement to acquire Metalogix Software Corp., a provider of trusted management tools for mission-critical collaboration platforms, including SharePoint, Exchange and Office 365.

Members of Metalogix’s senior management team, including CEO Steven Murphy, will maintain a significant equity stake in the company going forward.

Terms of the transaction were not disclosed.

For over a decade, Metalogix has developed management software tools for SharePoint, Exchange, and Office 365.

It is a Microsoft Gold Partner, an EMC Select Partner, and a GSA provider, and its products are backed by its 24×7 support.

With its recent acquisitions of Axceler and Idera’s SharePoint tools, Metalogix has built a suite of tools to manage increasingly complex and exponentially growing metadata and content across collaboration platforms.

Over 14,000 clients in 86 countries rely on Metalogix tools every minute of every day to monitor, migrate, store, synchronize, archive, secure, and backup their collaboration platforms.

Metalogix was founded in 2008, and has its operational HQs in Washington, D.C., with offices around the world.

“Metalogix is an exciting investment opportunity for the Permira funds and another example of our technology strategy of backing platform software companies in secular growth markets,” said Brian Ruder, a Permira partner and co-head of its technology, media and telecom sector Team. “We look forward to partnering with Steve Murphy and the rest of the company’s strong management team as Metalogix grows into attractive new markets organically and through select M&A opportunities.”

“Metalogix delivers significant value to its customers by offering a suite of products that helps to better manage critical data on premise and in the cloud. We believe Metalogix is uniquely positioned to help its customers tackle the challenges of collaborating in a world with exponential data growth and device proliferation,” said Ryan Lanpher, an investment professional based in Permira’s Menlo Park office.

“We are excited to welcome the Permira funds as a partner in accelerating the growth of our business,” said Murphy. “There are tremendous opportunities to drive innovation and further growth through accelerated global channel expansion and cloud and mobile infrastructure management. With the added financial backing, operational support and investment track record of the Permira funds, we fully expect to continue delivering impressive growth in the coming years. Importantly, the Permira funds recognize the key role we play in providing critical and seamless tools to our expanding roster of clients and support our next phase of development. We could not be more excited to hit the ground running with Permira.”

According to Forrester, the collaboration services market will grow rapidly to reach $67 billion by 2018. Collaboration platforms represent a significant portion of this large and growing market.

The transaction is subject to regulatory approval and customary closing conditions, and is expected to close in 2014.

Upon closing, Permira’s Brian Ruder and Ryan Lanpher will join Metalogix’s operating committee. Following the completion of the transaction, Insight Venture Partners and Bessemer Venture Partners will fully exit their stakes in Metalogix.

Michael Triplett, MD, Insight Venture Partners, said: “We are pleased with this transaction and that Metalogix is finding a strong growth-oriented partner in Permira. Metalogix delivers critical solutions and the highest level of service to its customers and we are confident that it will continue to do so under the Permira funds’ stewardship.”

Jeremy Levine, partner, Bessemer Venture Partners, said: “The executive team at Metalogix has built the market-leading SharePoint infrastructure software company over the last several years, and we’re proud of our association with them through that period of extraordinary growth. Backed by the Permira funds’ resources, we believe Metalogix will continue to flourish in the years ahead.”

Evercore Group LLC served as the exclusive financial advisor to Metalogix and Willkie Farr & Gallagher LLP served as its legal advisor. Union Square Advisors LLC served as the exclusive financial advisor to the Permira funds and Fried, Frank, Harris, Shriver & Jacobson LLP served as its legal advisor.