Today Box announced that it had acquired Dutch eSignature firm SignRequest. This deal is of significant market interest for two reasons.
If we were to believe the industry hype, a firm like Gimmal would not be in growth mode. Instead, it would be weathering a storm of big brands like Microsoft, Box, Dropbox & Amazon essentially commoditizing their markets. In reality, though, as we have loudly proclaimed regularly in our research, information management is complicated and hard to do well, indeed in a world of more and more information and increased regulation, the challenges grow more significant by the day.
The price has not been disclosed, but off the record, estimates tell me that TH Lee has made a tidy profit on their investment and that Hyland has not overpaid. However, as always, it is essential to note that no M&A transaction is without tears. Alfresco ran a long and steady race as an independent championing open source ECM
Deep Analysis is not an M&A Brokerage, but we do network widely and actively advise senior executives, both buyers, and sellers. So I would like to think we have a good idea of what is going on behind the scenes in the Information and Process Management world. I can tell you for sure that there are personal anguish and difficulties to resolve during the pandemic. Still, the business itself is thriving, for most.
Though one can speculate that these deals may not have gone through had they been delayed a week or two, the fact is they did, and the industry continues to move forward. Recently Hyland acquired Learning Machine, OpenText bought xMedius, and Alfresco closed their first significant deal by catching TSG (Technology Services Group. Each is interesting and significant deals that may well herald more similar deals in the future.
Experience has taught us never to read too much into senior executive changes at prominent software companies. For sure, when a CEO is replaced, you can expect some change, but legacy software firms are difficult animals to tether. Companies that have come to rely on maintenance revenues can have some great new ideas, a change …