Private Equity Track record
  • Magnitude Logo 500X367
    Magnitude
    North America / Private Equity

    Software

    Overview

    Magnitude is a leading provider of data management software solutions that helps companies turn their core business data into continuous intelligence, providing actionable insights to shorten the path from data to decision. It enables its customers to connect data across enterprise applications and business processes including supply chain, finance, manufacturing and distribution, and to leverage insights from that data to make critical business decisions.

    The company has offices in the US, the Netherlands, UK, Canada and India with more than 1/3rd of sales from outside the US.  Under its prior owner, Magnitude had completed a series of acquisitions, aggregating best-in-class point solutions within the SAP and Oracle ecosystems, and other broad data-oriented solutions.

    3i invested c.$182m in Magnitude Software in 2019 to accelerate its global growth ambitions through new product development and investments in sales & marketing, and to build a more integrated enterprise software business.  Magnitude had strong IP and a portfolio of best-in-class products, but had not yet been fully integrated and was underperforming against market growth.

    During our two and a half year ownership, we invested significantly in the company’s R&D and product portfolio, recruited an executive team with experience at lead public technology organisations such as Amazon, Google, SS&C, Salesforce.com and Cyxtera, and transformed the commercial organisation.  In July 2020, we recruited CEO Jeff Shoreman where he focused on accelerating recurring revenue growth and driving long-term strategy. 

    Under 3i’s ownership, Magnitude transitioned its leading operational analytics product to the cloud and developed new partnerships, such as its co-selling relationship with SAP for Magnitude’s SourceConnect product.  The company developed new functional capabilities such as a customer success organisation to drive retention and cross-sell, built a marketing organisation to drive greater awareness and lead generation, and transitioned to a centralised sales model under new commercial leadership.

    3i continues to believe strongly in the trajectory and potential for Magnitude and has reinvested a portion of its proceeds into Insightsoftware.

    Highlights

    • Double-digit revenue, ARR, bookings & EBITDA growth from 2019 onward
    • Recruited a new senior-leadership team from several leading, public software companies
    • Transitioned its Angles analytics platform from on-premises to cloud
    • Refreshed its brand identity and digital presence
    • Enhanced its go-to-market capabilities with new lead generation tactics, a centralised sales model and new indirect sales channels
    • Launched a partnership with SAP focused on data integration for SAP’s core Central Finance application
    Key facts
    10+% organic revenue, EBITDA, ARR and bookings growth
    100+% / 90+% net retention and gross retention
    +1,300 of the world’s largest enterprises served
    “We have greatly enjoyed working with 3i and they supported our ambition to create a highly differentiated, global enterprise software company in a dynamic market. 3i’s knowledge and expertise helped us capitalise on growth tailwinds in data analytics and the need for enterprises to become “data-driven” to speed insights and decision-making. We are well-positioned for the next stage of our growth.” Jeffrey D. Shoreman CEO, Magnitude
    Deal team
    Alec Rubenstein
    Director
    North America / Private Equity
    View bio

    Regulatory information 
    This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.

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