SOFTWARE LICENSING

Software Licensing: Teachers' Private Capital Buys Majority Stake in Flexera Software

By Tammy Wolf, TMCnet Web Editor

Following three years of significant revenue growth, Flexera Software is ready to enter the next stage of its expansion. Therefore, the software licensing solutions developer has agreed to allow a majority stake to be acquired by Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan.

According to a press release, Teachers’ Private Capital will purchase Flexera Software’s majority stake from private equity firm Thoma Bravo. Transaction terms were not revealed.

In addition to developing comprehensive software licensing solutions, Chicago-based Flexera Software also offers installation, entitlement management and delivery, software deployment, and license compliance and optimization. With a heavy hand in managing application usage at Global 2000 companies, Flexera Software’s success has been largely driven by its involvement in emerging market opportunities.

“Over the past few years, Flexera Software has created tremendous value for our customers and shareholders,” said Mark Bishof, president and chief executive officer of Flexera Software. “The investment by both Teachers' Private Capital and Thoma Bravo validates our past success and the future potential of our company. Having world-class investors coupled with one of the best teams in the industry enables us to focus on driving revenue and exceeding our customers' expectations.”

Upon completion of the acquisition, expected to close in late September, Flexera Software will continue to take advantage of strong market trends, including the need for enterprises to ensure continuous compliance for software licenses, migration to the cloud and virtualization, and increasing reliance on software as part of intelligent device manufacturers’ business models.

Under the same executive management team, Flexera Software will continue to work with its partners to offer value-added solutions to customers.

“The Flexera Software team has done an exceptional job of growing the business, defining a strategic vision and executing to become the market leader,” said Jane Rowe, senior vice-president, Teachers' Private Capital. “The company has established a strong position in an attractive market segment and Teachers' is committed to supporting Flexera Software's continued innovation and strategic vision as it moves to the next stage of its growth.”

According to the press release, Thoma Bravo will still retain a minority interest in the company. Said Seth Boro, a partner at Thoma Bravo, “Thoma Bravo has had a tremendously successful partnership with Flexera Software since we acquired the company three years ago. We believe the company is poised to realize the next stage in its growth and market leadership, and we are excited to be an ongoing partner in making that happen.”

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Tammy Wolf is a TMCnet web editor. She covers a wide range of topics, including IP communications and information technology. To read more of her articles, please visit her columnist page.

Edited by Jennifer Russell