Partners Group boosts stake in Idera, pushing valuation to ~$3bn

As part of the deal, TA and HGGC will roll equity to retain minority stakes in the business.

Partners Group has taken a controlling stake in Idera in a transaction that values the business-to-business software company at close to $3 billion, sources familiar with the deal’s terms told PE Hub.

Partners Group, previously a minority investor, purchased shares from existing investors TA Associates and HGGC – assuming 60 percent ownership of Idera, the people familiar said.

As part of the deal, TA and HGGC will roll over equity to retain minority stakes in the business.

TA, which invested in the company in 2014, is set to return over 10x on its initial investment, sources said. HGGC, which invested in the company in 2017, is expected to make more than 3x its money, they said.

Idera, based in Houston, is a developer of software that enables database professionals to design, monitor and manage data systems and provides application development tools to help software engineers build, test, deploy and manage applications more quickly and efficiently.

Idera generates over $300 million in revenue and has a 50 percent profit margin, the sources said.

The business has also grown significantly in value over the last several years.

In May 2017, HGGC completed its $1.13 billion recapitalization of Idera, becoming its control investor. The recap was done in partnership with management and TA, which had owned Idera since 2014.

Two years later, Partners Group acquired a 25 percent stake in Idera, valuing the company at $2 billion, sources told PE Hub at that time.

Now, with Partners Group reupping its stake, the company is valued at nearly $3 billion.

The deal came together after TA began exploring a path to liquidity for its original investment in Idera – leading Partners to express an interest in buying out a portion of its investment partners’ shares, the sources said.

Partners Group and HGGC declined to comment. TA Associates and Idera did not return PE Hub’s request for comment.