Alpine Investors earlier this week announced the sale of Mindful, an Akron, Ohio, provider of contact-center automation to Medallia, a provider of software for customer and employee experiences. PE Hub caught up with Haley Beck, a principal at the San Francisco PE firm, to find out more about the exit.
During the four years of ownership, Alpine more than doubled Mindful’s overall revenue and positioned the business as a key player in the space, Beck said.
“This was really a transformation story,” Beck said. “We converted the business from a traditional on-premise perpetual license model to an SaaS revenue and cloud deployment model.”
She said the combination of talent and product superiority was at the center of the success. Beck said Alpine helped bring in additional talent, and rallied the team to deliver value to customers. “That all fueled the success of this deal,” she said. Alpine added over 30 percent to Mindful’s employee population and total active clients.
“We were laser focused on having an incredible product offering and thinking ahead of what customers would need in the future in the form of SaaS transition,” Beck said.
Historically, Beck said the business sold on-premise software, and customers would sign up for maintenance. Alpine helped modernize the business and brought in the Software-as-a-Service model, a move that helped improve the subscription and customer base.
Although Mindful contact centers had begun converting to the SaaS model before covid, the pandemic sped up the process.
“The pandemic accelerated, probably by five years, the adoption of SaaS in this market, as contact centers needed cloud offerings during the work-from-home period, needed more advanced technology to forecast and manage their contact centers through this period of interruption,” Beck said.
The transformed business contributed to Alpine’s early exit. She said: “The team really outperformed our deal model and our expectations and was hitting their targets a couple years early.”
To bolster the company, the firm made two add-on acquisitions: Ten Digit Communications and Survey Dynamix. Ten Digit was integrated into Mindful, and Survey Dynamix was rebranded as Mindful Feedback.
Beck described Medallia, the Pleasanton, California-based new owner of Mindful, as unique and the perfect buyer because of its strength and footprint in the SaaS space.
“It was a natural fit for the Mindful product,” she said.