Host Analytics Inc., a leading provider of cloud-based enterprise performance management (EPM) solutions, has signed a definitive agreement to be acquired by Vector Capital, a leading private equity firm specializing in transformational investments in established technology businesses. As part of the transaction, Host Analytics’ largest shareholder, StarVest Partners, will remain a significant investor in the company.
“We are excited to partner with Vector Capital to accelerate our growth in the rapidly expanding EPM market. This is an exciting time for our company, our customers, and our employees,” said Dave Kellogg, chief executive officer at Host Analytics. “Vector Capital brings substantial financial and operational resources, an expert team that will help reinforce our culture of excellence, an impressive 20+ year track record, and an ambitious plan to drive our business forward.”
“Host Analytics’ combination of leading products, highly skilled workforce, and impressive roster of blue-chip customers provides an ideal platform for future growth,” said David Fishman, managing director at Vector Capital. “We are impressed by the company’s strong business, excited by the company’s product roadmap, and look forward to backing Host Analytics through the next stage of growth.”
“We believe Host Analytics is well positioned to capitalize on a tremendous opportunity in the growing cloud EPM space,” said Stephen Goodman, vice president at Vector Capital. “We are excited to invest in Host Analytics to execute on attractive market opportunities organically and through add-on acquisitions.”
Vector will finance the transaction from Vector Capital V, a $1.4 billion fund raised in 2017 to invest exclusively in established technology companies across software, internet and digital media, communications, and industrial technology. Host Analytics will maintain its corporate headquarters in Redwood City, California and continue to provide industry-leading EPM services to its global customer base.
“Customers expect leaders in the EPM market to fund rapid product innovation and growth,” said R ‘Ray’ Wang, principal analyst and founder, Constellation Research. “This acquisition gives Host Analytics the ability to acquire other vendors focused on the Office of the CFO and build out future capabilities for customers.”
The proposed transaction is expected to close within 30 days, subject to approval by regulatory authorities and the satisfaction of customary closing conditions. The agreement was unanimously approved by Host Analytics’ board of directors. Host Analytics was advised on the transaction by Centerview Partners.