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ESW Capital

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ESW Capital, LLC
Type
Private equity
IndustryBusiness Services
Founded 📆1988
Founder 👔Joe Liemandt
Headquarters 🏙️Austin, Texas, United States
Area served 🗺️
Members
Number of employees
Website[Lua error in Module:WikidataIB at line 665: attempt to index field 'wikibase' (a nil value). ] 
address
telephone

ESW Capital, LLC is an investment company based in Austin, Texas, which has concentrated on purchasing (100% acquisition model), strengthening, and then enlarging mature business software companies since 1988.[1] . ESW Capital group is a well- funded private equity firm that is immersed in the business and enterprise software space. Because of its special operating platforms, ESW enlivens its acquired companies to achieve sustainable success and at the same time making their customer satisfied. ESW Capital group exactly concentrates on targeting, changing and operating mature business software companies, which owns over 60 software companies of the world[2], including well-known brand such as Trilogy, Ignite Technologies, Aurea, etc. ESW Capital does not buy companies in purpose of selling its assets, the company buy them to enhance and grow business in the long-term. ESW Capital is an active acquirer of business software companies, including the companies which have divestiture and distressed situations[2]

Texas, USA

History[edit]

The ESW Capital was founded in 1988 by Joe Liemandt , which is an investment firm that purchases software companies. In 2006, he wanted to build an enterprise software empire where innovation and creation are the main method to make sheer profit. Then ESW Capital started to buy dozens of business-software firms which the value of them ranges between $10 million to $250 million. ESW targets the founders and shareholders of middle-aged firms, as Liemandt can offer quick cash within 45days, which is necessary for them.[3]. As the company develops,  the mode is gradually clear-out:the whole company is a relatively free mode of operation. Most of the contractors need to prepare their own paperwork and regulations, report and pay their taxes according to their local jurisdictions' law as ESW capital's contractors are from different areas. Contractors also use their own hardware, as ESW would not offer any office equipments. ESW's contractors do not have paid leave, health care benefits or bonuses, which are not within the jurisdiction of the company's headquarters[3]

So far, ESW capital is still acquiring companies to grow and develop.

Purpose[edit]

ESW Capital's purpose is acquiring companies to help them achieve a sustainable success and at the same time making its customer satisfied . Alex Western, managing director of ESW Capital describes why ESW choose to purchase companies and how they operate it. One of its purpose is running a technology company in a sustainable way.[4] ESW Capital finds companies which are healthy and potentially sustainable, especially focusing on software firms and IT services firms. It helps these companies sale their products to other enterprise customers. It chooses to buy companies with certain infrastructure and operational capabilities to make acquisitions. It is more concerned about its long-term development capabilities than the profits that companies can now create. After acquiring these companies, ESW will use its existing resources, such as partners or other acquired companies to help newly acquired companies operate. It generally does not change the company's original business scope or sell its assets, the main goal of ESW is helping the company find a bigger development market and make profit. It hopes to establish its own business empire in this way.

Model[edit]

  • Buy, strengthen, and grow business software companies

When choosing the right company, ESW will help it strengthen the company's operational capabilities, it controls costs and outputs to achieve revenue. After increasing the company's value, ESW began to prepare for sustainable development. It hopes for long-term benefits and development, not only the short-term rescue.

  • The bigger a company gets, the more efficient and more sustainable it gets and the more career advancement opportunities it can provide.

As stated, ESW Capital does not sell the assets of the acquired company to make a profit. It will carefully recognise these software companies and make detailed and effective plans to strengthen the existing projects of these companies, making these companies a better competitive position in the market. ESW Capital will run these acquired companies for a long time, as its goal is to build a strong software company empire, not just the immediate interests.[2]

Over 30 years, it has done 70 acquisitions and what it built behind the scenes is an integrated shared services operating model, which it is like economies of scale on steroids.[4] It shares their operating models and make companies more profitable.

Transactions[2][edit]

  • A complete (100%) acquisition, its target company's EV(Enterprise value) is $10million-$250million+
  • The operation speed is fast: Valuation within one week and issue a letter of intent (LOI)within 45 days
  • Easy-simple cooperation: Friendly attitude; using cash settlement,;no matter whether the profit or loss is closed after the acquisition is confirmed, there will be no dispute with the seller,no contingencies;no unexpected events
  • Certainty : After the letter of intent, the closing rate is as high as 98%
  • Extensive prospect: own technology independent; determine and bid on u-turn situations

Acquisition appetite[2][edit]

  • ESW is keen on acquiring all types of commercial software and IT service companies, including spectrum from SMB (Server Message Block) to the enterprise.
  • ESW's portfolio includes SaaS, on-premise software, technology-enabled hosting service, and pure IT consultant in Europe and North America.
  • ESW is especially interested in companies who have long tenured customers

Focus on[edit]

  1. Companies with established enterprise software in US or Europe
  2. Companies with Server Message Block Technology all around the world
  3. Companies with profitable($1million-$5million EBITDA, no required growth rate) Niche software
  4. Companies with Technical support hosting service, opening to all industries or sectors, especially in USA or Western Europe
  5. Companies with enterprise IT consulting, staff located in United States
  6. Companies in distressed situations or bankruptcy with software of high-technology.

Competitive advantages[edit]

▪ the special business model:Different from the business model of other acquisition companies, it can retain the original business model to the greatest extent. So it have a unique position in the market.[citation needed]

▪ the unique operating platform: Its platform allows more software companies and IT companies to find the right place in the market.[citation needed]

▪ the wide footprint and offerings: It has acquired diversified companies, so it can provide industry support.[citation needed]

▪ the prime program - free Enterprise Software[citation needed]

▪ the ability to quickly training world-class talent[citation needed]

List of ESW Capital companies[edit]

ESW Capital companies(1998-2018)
company name country date affiliation
Trilogy USA 1998 Enterprise Sales and Marketing Solutions
Versta USA Jan-06 Application Development Platform
Artemis Europe Jul-06 Enterprise Portfolio Management
Gensym USA Sep-07 Expert System Development Platform
Nextance USA Sep-07 Document Management
Clear USA Mar-08 Application Development Platform versta
Nuvo Cananda Mar-08 Network Monitoring Service versta
ETI USA May-08 Data Transformation versta
TenFold USA Jun-08 Application Development Platform versta
eCora USA Sep-08 System Management
Alterpoint USA Mar-09 Network Device Management
Everest USA Jun-09 SMB Retail ERP
PurchasingNet USA Dec-09 Supply Chain Management
Triactive USA Jul-10 System Management
Meratomix USA Sep-10 Semantic Middleware
Think3 Europe Sep-10 CAD and PLM versta
Infopia USA Oct-10 eCommerce Software/Service versta
Corizon Europe Oct-10 App Dev/ Composite Apps
Auto-Trol USA Nov-10 Enterprise Data Management
Right90 USA Dec-10 Sales Forecasting
GeoVue USA Feb-11 Dynamic Location Optimization
RavenFlow USA Mar-11 Requirements Definition System
Agentek USA Oct-11 Field Service/ Workforce Optimization
Prologic Europe May-12 Retail Vertical Software
Accept USA Oct-12 Project and Portfolio Management
ObjectStore USA Dec-12 Object Oriented Database
Aurea USA Dec-12 Infrastructure and BPM
Ignite USA Jul-13 Content Delivery SaaS
Still Secure USA Sep-13 NAC & Managed Security
GCE Europe Jun-14 Retail ERP Aurea
Nuview USA Jul-14 Payroll Processing
Acorn USA Jul-14 Profit Analytics System
Aurea Energy Solutions USA Aug-14 Energy billing/ management Aurea
Update Europe Sep-14 Industry Specific CRM
Spiral Europe Sep-14 Multichannel Retail ERP
MessageOne USA May-15 Email Archiving and Recovery
Hipcricket USA May-15 Mobile Messaging and Advertising
GFI Europe Jun-15 SMB Email and Fax
Nextdocs USA Jul-15 Document Management for Life Sciences
Lyris USA Jul-15 Email and Messaging Management
Quantum Retail USA Oct-15 Retail profit Analytics
Compressus USA Dec-15 Medical/ Radiology Workflow System
EPM Live USA Mar-16 Enterprise Productivity Management
Conarc USA Mar-16 Enterprise Content Management
SenSage AP USA Apr-16 Security Data Analytics Ignite
@Hand USA May-16 Enterprise Mobile Data Platform
Wave Systems USA Aug-16 Data Security and Encryption
ThinkVine USA Oct-16 Marketing Attribution and Optimization
CyberlinkASP USA Dec-16 Desktop Hosting Services
Kerio Technologies USA Jan-17 SMB Communications and Security
Infobright IEE Canada Mar-17 Scalable Big Data Storage and Analytics
Rose ASP USA Apr-17 Microsoft Dynamic and Application Hosting
Engine Yard USA Apr-17 Ruby Technology, Consulting and Hosting
Exinda USA Apr-17 Application and Network Performance Tools
Placeable USA Apr-17 Location Data Management and Marketing
Jive SoftWare USA Jun-17 Enterprise Collaboration and Communities
FirstRain USA Jul-17 Data Analytics for sales and Marketing Enablement
DNN Corp USa Aug-17 Dynamic Content Management
PeerApp USA Sep-17 Carrier-grade Content Delivery Solutions
Sitrion Business Solutions USA Sep-17 Workforce Productivity for SharePoint and SAP
Infer USA Oct-17 Predictive Analytics for Sales and Marketing
Apps2U USA Nov-17 Desktop and Application Hosting
Knowledge Marketing USA Jan-18 Audience and Customer Management for Publishers
ScaleArc USA Jan-18 Database Load Balancing Software
Kayako Asia Mar-18 SMB Customer Service Software
Mobilogy Asia Mar-18 Mobile Device Lifecycle Solutions
RMSA Retail Solutions USA Mar-18 Retail Planning and Forecasting Platform
Firm58 USA Apr-18 Capital Markets Firms Platform
Symphony Commerce USA May-18 Retail Commerce, Inventory , Logistics
ResponseTek Canada May-18 Enterprise Customer Experience Management Solutions
Bizness Apps USA May-18 Mobile App Development
Olive Softare USA Jun-18 E-Publishing and Digital Archiving Solutions
My Alerts USA Jun-18 Personalized e-Commerce Marketing Platform
MBI Solutions USA Jun-18 Software Application Management
Chute USA Jun-18 Enterprise User-Generated Content (UGC)
VoltDelta USA Jun-18 Contact Centre Software and Services
Bonzai Intranet Canada Jul-18 Intranet Platform for SharePoint and Office365
TAKE Supply Chain USA Sep-18 Supply Chain Management Solutions
Vasona Networks USA Sep-18 Network Performance and Edge Computing Software
Avolin USA Oct-18 Enterprise Software Solutions

Acquired firm’s attitude: FirstRain[5] [edit]

On August 1, 2017, ESW Capital, LLC completed the acquisition of FirstRain, which is a pioneer in marketing and sales intelligence applications in Silicon Valley. FirstRain is now belong to Ignite Technologies, Inc, which is subsidiary of ESW Capital .

FirstRain’s CEO indicates that there are records showing Ignite has achieved great success in terms of stability, profit growth and customer satisfaction, further confirming that FirstRain has been placed in the right place. He is looking forward to seeing the performance of the company after the acquisition.

FirstRain immediately offers the Prime program to all Ignite customers , which is a breakthrough program providing free enterprise software licenses and the standard technical assistance to all existent customers.

References[edit]

  1. "ESW Capital". Crunchbase. Retrieved 2019-04-09.
  2. 2.0 2.1 2.2 2.3 2.4 "ESW Capital, LLC" (PDF).
  3. 3.0 3.1 Vardi, Nathan. "How A Mysterious Tech Billionaire Created Two Fortunes—And A Global Software Sweatshop". Forbes. Retrieved 2019-04-09.
  4. 4.0 4.1 South Pod (2018-05-15), ESW Capital: The Secret Sauce to Running Better Tech Companies with Alex Western, retrieved 2019-05-12
  5. "ESW Capital LLC Completes Acquisition of FirstRain Inc". FirstRain. 2017-08-01. Retrieved 2019-04-09.

ESW Capital[edit]

This article "ESW Capital" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:ESW Capital. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.


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