ESW Capital, LLC

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ESW Capital, LLC

Type	Private equity
ISIN	🆔
Industry	Business Services
Founded 📆	1988
Founder 👔	Joe Liemandt
Headquarters 🏙️	Austin, Texas, United States
Area served 🗺️
Members
Number of employees
🌐 Website	[ ]
📇 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. . 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, 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

Texas, USA

History

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.. 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

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

Purpose

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. 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

• 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.

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. It shares their operating models and make companies more profitable.

Transactions

• 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

• 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

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

▪ 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.

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

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

▪ the prime program - free Enterprise Software

▪ the ability to quickly training world-class talent

List of ESW Capital companies

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 

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.

ESW Capital

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