- Vista Equity Partners has bought a majority stake of customer success company Gainsight in a deal that values the company at $1.1 billion. These are the details.
Vista Equity Partners has bought a majority stake of customer success company Gainsight in a deal that values the company at $1.1 billion, according to Forbes. Vista has a solid track record at buying companies and either selling them to another company at higher values or taking the companies public. Some companies that Vista took public include Datto, Ping Identity, and JAMF.
Gainsight CEO Nick Mehta told Forbes in an interview that it is on track for meeting a 2020 end-of-year target of achieving $100 million in annualized recurring revenue (ARR). The company was originally launched in 2009 by Jim Eberlin and Sreedhar Peddineni as “JBara Software.” But the company name was changed in 2013. Mehta had previously sold LiveOffice to Symantec.
Gainsight is known for empowering hundreds of customer-focused businesses to deliver positive outcomes and exceptional experiences to their customers every day by enabling enterprises to successfully on-board, retain, and expand their customer base.
With Vista, Gainsight is planning to continue to provide its customers with best-in-class software solutions, customer service, and Customer Success thought leadership while expanding its product portfolio, its customer base, and its geographic footprint.
KEY QUOTES:
“We learned about Vista because many of their portfolio companies are Gainsight customers and we saw how they partner with leading enterprise software businesses to accelerate success. Reaching unicorn status and working with Vista is validation of how far the Customer Success community has come over the last seven years and how important our work is to the growth and financial strength of some of the world’s leading businesses. I couldn’t be more excited to partner with the Vista team to drive more innovation, more impact and continued success for the community as a whole.”
— Nick Mehta, CEO of Gainsight
“As an enabler of both customer and business success, we see tremendous opportunity for Gainsight to further expand its footprint and customer base. We are excited to partner with the Gainsight team in its next phase of growth, helping the company to expand the category it has created and deliver even more solutions that drive retention and growth to businesses across the globe.”
— Monti Saroya, co-head of the Vista Flagship Fund and Senior Managing Director
“Across our portfolio of over 65 software companies, Vista has witnessed firsthand the outsized impact that a commitment to customer success can have on a company’s performance. Together with Nick and the excellent leadership team at Gainsight, we look forward to accelerating the adoption of Gainsight products and business models that prioritize customer experience and satisfaction.”
— John Stalder, Managing Director at Vista Equity Partners
