- TPG Capital has announced it signed a definitive agreement to buy CollabNet VersionOne from Vector Capital. These are the details behind the deal.
TPG Capital — a private equity platform of global alternative asset firm TPG — announced it has signed a definitive agreement to buy CollabNet VersionOne from Vector Capital. CollabNet VersionOne is considered a leading platform provider for Agile planning, DevOps, and Value Stream Management (VSM). This transaction is subject to customary closing conditions. And the terms of the acquisition were not disclosed.
This investment is marking the first step in a broader strategy where TPG Capital will commit up to $500 million of equity capital to build a leading, integrated, and enterprise-focused DevOps platform company. And TPG Capital and CollabNet management will work together to accelerate the growth of the company’s existing portfolio as well as aggressively pursue acquisitions in strategic adjacencies that complement Agile planning and delivery (as well as testing), release management, and the emerging market for VSM.
“We have studied the software delivery and DevOps space for several years. The space is highly fragmented with several smaller vendors addressing the low end of the market,” said Nehal Raj and Art Heidrich of TPG. “As large companies across industries continue to prioritize in-house software development and digital transformation initiatives, we see a compelling opportunity to build an integrated DevOps company focused on larger enterprises. CollabNet’s strong product footprint and commitment to enterprise customers make the company the right starting point from which to build and consolidate. We look forward to working together with management to create a leading, enterprise-focused DevOps platform.”
CollabNet is a recognized leader in enterprise Agile planning and VSM by leading analyst firms Gartner and Forrester that focuses on enabling enterprises to develop and deliver high-quality software that drives business outcomes. And CollabNet’s core products include VersionOne for enterprise Agile planning and management, VS for connected workflows and visibility throughout the entire delivery value stream, and TeamForge for enterprise-scale source code management and application lifecycle management.
“We are grateful for Vector’s partnership over the past five years and look forward to continuing to expand the CollabNet platform with the resources and growth vision of TPG. This commitment will rapidly build on our success through organic innovation and outside acquisition,” added CollabNet CEO Flint Brenton. “We have served large global customers with an integrated, enterprise-scale software planning and delivery offering since our inception, along with some of the largest government accounts in the industry. Together with TPG we will continue to lead in Agile, DevOps, and VSM.”
CollabNet had also recently introduced Ossum — which is a SaaS DevOps offering that integrates and streamlines software development from idea to release.
“Under Vector’s ownership, through a combination of accelerated organic development and strategic M&A, we successfully transformed CollabNet from a point provider of developer tools to a leading enterprise-grade DevOps platform,” explained Vector Capital managing director Rob Amen. “We are proud of the outcome we achieved for our investors and wish the management team and TPG continued success during the company’s next chapter.”
Barclays and RBC Capital Markets acted as financial advisors to TPG Capital, and Ropes & Gray LLP served as legal counsel. And KeyBank Capital Markets served as financial advisor to CollabNet. Plus Sidley Austin LLP served as legal counsel to CollabNet and Vector Capital.
