Idera, a B2B software productivity business, has recapitalized with Partners Group becoming majority owner. Existing shareholders HGGC and TA Associates will remain significant equity investors alongside management. Jefferies is lead financing partner and M&A adviser for the transaction.
HOUSTON – January 22, 2021 – Idera, Inc. (“Idera” or “the Company”), parent company of global B2B software productivity brands, today announced an agreement to recapitalize the Company, with global private markets investment manager Partners Group becoming majority owner, on behalf of its clients. Current shareholders HGGC and TA Associates will continue as significant equity investors moving forward, along with Idera’s management team.
This recapitalization represents the fourth equity transaction for Idera since 2014 and reflects investor confidence in the Company’s innovative business model and M&A expertise. Since 2014, Idera has grown revenue, bookings, and earnings by more than 10X. Organic growth from market-leading assets and acquisitions of nearly 20 companies drive the growth and foretell continued investor success.
“Since partnering with TA in 2014, we devoted ourselves to achieving results beneficial to shareholders, customers, and employees,” said Randy Jacops, Idera’s CEO. “Our business model ensures we focus on customer priorities and attracts great investors who advise our innovations and support our belief that accepting and managing risk encourages creativity and confidence from our team. I am honored to lead such a great company and look forward to continuing our success with Partners Group and our other investors.”
“When we first met the Idera team, we discovered a company with a unique business model focused on efficiency, reliability and speed, and one that we believed to be an attractive investment opportunity,” stated Hythem El-Nazer, a Managing Director at TA Associates. “We became fans of Idera’s product mantra of making products easier to use, more scalable and with exceptional quality. This clear focus eliminated friction from the go-to-market process and enabled the Company to focus on the highest value ideas. We are thrilled to continue to partner with Randy Jacops and his management team on the next phase of growth.”
“When we heard the Idera story, we jumped at the chance to invest in the Company as we pride ourselves on partnering with winning management teams to drive success,” said Steve Young, HGGC Co-Founder and outgoing Idera Chairman.
“After we acquired a majority interest in 2017, we worked with Idera to ramp up the acquisition engine and closed over ten transactions in two years. This pace continues with a new deal announced this week and another pending. We look forward to more success as continuing investors in this great company,” added Neil White, Partner at HGGC.
Partners Group made an initial investment in Idera, on behalf of its clients, in 2019. As described by Hal Avidano, Managing Director at Partners Group, “We are excited to continue our relationship with Idera and expand its strong platform. Over the past 18 months, we became further convinced of Idera’s business model and the significant market opportunity in the sector. Partners Group is a transformational investor and we believe that our thematic and platform-building expertise is an excellent fit for Idera as it capitalizes on these secular trends and achieves further growth.”
Kirkland & Ellis and Horzepa, Spiegel & Associates acted as legal counsel for Idera. Ropes & Gray acted as legal counsel for Partners Group. Deloitte acted as accounting and tax advisor to Idera. Jefferies will act as lead financing partner and M&A advisor for the transaction.
About Partners Group
Partners Group is a leading global private markets investment manager. Since 1996, the firm has invested over USD 145 billion in private equity, private real estate, private debt and private infrastructure on behalf of its clients globally. Partners Group is a committed, responsible investor and aims to create broad stakeholder impact through its active ownership and development of growing businesses, attractive real estate and essential infrastructure. With over USD 109 billion in assets under management as of 31 December 2020, Partners Group serves a broad range of institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn or Twitter.
Partners Group’s private equity business has an established track record of investing in leading businesses with development potential to generate attractive returns for its clients. With entrepreneurial governance at the heart of its approach, Partners Group’s private equity business aims to build high-performing boards and works together with management teams on targeted value creation initiatives. These enable long-term, sustainable growth, to the benefit of all stakeholders. Partners Group’s private equity business has directly invested in over 240 businesses since inception and today has USD 45 billion in assets under management.
About Idera, Inc.
Idera, Inc. delivers B2B software productivity tools that enable technical users to do more with less, faster. Idera, Inc. brands span three divisions—Database Tools, Developer Tools, and Testing Tools—with products evangelized by millions of community members and more than 50,000 customers worldwide, including some of the world’s largest healthcare, financial services, retail, and technology companies. To learn more, visit: https://www.ideracorp.com/.
HGGC is a leading middle-market private equity firm with over $5.4 billion in cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its Advantaged Investing approach that enables the firm to source and acquire scalable businesses through partnerships with management teams, founders and sponsors who reinvest alongside HGGC, creating a strong alignment of interests. Since its inception in 2007, HGGC has completed more than 190 platform investments, add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value of over $27 billion. More information, including a complete list of current and former portfolio companies, is available at hggc.com.
About TA Associates
TA Associates is a leading global growth private equity firm. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high-quality growth companies. TA has raised $33.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $3 billion per year. The firm’s more than 100 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA Associates can be found at www.ta.com.