Francisco Partners

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Francisco Partners
Private
IndustryPrivate equity
Founded1999; 19 years ago (1999)
FoundersDavid Stanton, Dipanjan Deb, Benjamin Ball, Neil Garfinkel, Sanford R. "Sandy" Robertson
Headquarters
Key people
Dipanjan Deb, CEO
Ezra Perlman, Co-President
Deep Shah, Co-President
AUM$14 billion
Number of employees
35 investment professionals
Websitewww.franciscopartners.com

Francisco Partners is an American private equity firm focused exclusively on investments in technology and technology-enabled services businesses. Francisco Partners Management LLC was founded in August 1999. As of 2016, it was based in San Francisco and London.[1] From its inception until 2017, the firm raised over $14 billion in committed capital across four funds and built an investment portfolio including over 85 companies.[2]

History[edit]

Francisco was founded in 1999 as the emergence of dedicated technology buyout firms began.[3] The founders of the firm came from a group of private equity firms including TPG Capital, together with the founder of technology-focused investment bank Robertson Stephens.

In 2000 the firm paid $375 million in cash to purchase 90% of Advanced Micro Devices' communications products division.[4]

Francisco Partners then raised $800 million in 2002 to purchase 90% of Global eXchange Services, a unit of the General Electric Company.[5][6]

In 2016, Francisco Partners' portfolio company NSO Group was accused of helping governments hack smartphones and persecute human rights activists.[1] It was also criticized for investing in direct competitors, WatchGuard and SonicWall, a practice frowned upon in the private equity industry.[7]

In 2016 it purchased subsidiaries from Dell as part of the spinoff of Dell Software.[8] Also in 2016, the firm sold Aesynt for $275 million.[9]

In 2017, Francisco Partners was named Private Equity Firm of the Year by Mergers & Acquisitions magazine.[10]

Business model[edit]

Francisco Partners specializes in financing divisional buyouts, "take privates" of public companies, sponsored mergers and acquisitions, growth equity financing, recapitalizations, and restructurings. It prefers to invest in mature or maturing technology and technology-related companies. The firm invests in software, internet, healthcare technology, communications, hardware and technology services. It prefers to invest in companies with enterprise values ranging from $25 million to $2 billion. The firm makes equity investments ranging from less than $25 million to over $500 million. It typically acquires a majority or controlling stake in its portfolio companies, but will be a minority investor with board of director representation.

Francisco Partners has more than 30 active portfolio companies. Francisco has acquired former venture capital-backed companies as well as many divisions of large conglomerates and IT companies worldwide.[11]

List of current investments[edit]

Francisco Partners currently is invested in the following companies:[12]

References[edit]

  1. ^ a b c Thomas Fox-Brewster (August 25, 2016). "Everything We Know About NSO Group: The Professional Spies Who Hacked iPhones With A Single Text".
  2. ^ "Francisco Partners - About". www.franciscopartners.com. Retrieved 2017-07-10.
  3. ^ "You ain't seen nothing yet". EDN Network. January 1, 2000. Retrieved November 15, 2018.
  4. ^ "Company News; Advanced Micro to Sell Most of Communications Unit". New York Times. May 23, 2000. Retrieved November 15, 2018.
  5. ^ Deutsch, Claudia (June 25, 2002). "G.E. Is Selling Off Most of Electronic Commerce Business". New York Times. Retrieved November 15, 2018.
  6. ^ "Citing a Tight Bond Market, G.E. Makes a Loan to a Buyer". New York Times. September 28, 2002. Retrieved November 15, 2018.
  7. ^ Gillian Tan (July 12, 2016). "How's This for a Private Equity Conflict?".
  8. ^ "Francisco Partners and Elliott Management to Acquire the Dell Software Group". DELL. 20 June 2016. Retrieved August 23, 2016.
  9. ^ Francisco Partners to sell Aesynt for $275m. Pitchbook, November 2, 2015
  10. ^ "Francisco Partners earns Private Equity Firm of the Year". Mergers & Acquisitions. Retrieved 2017-07-05.
  11. ^ Rivlin, Gary (May 15, 2004). "Bring Us Your Small, Unloved Start-Ups". The New York Times. Retrieved November 15, 2018.
  12. ^ a b c d e f g h i j k l m n o p q r s t u v w x y z aa ab ac ad ae af ag ah ai aj ak al am an ao ap aq "Investments". Francisco Partners. Retrieved November 15, 2018.
  13. ^ Chen, Angela (30 April 2015). "ClickSoftware to Be Bought by Francisco Partners for $438 Million". Wall Street Journal. Retrieved 6 September 2015.
  14. ^ "Francisco Partners Announces Acquisition of Comodo’s Certificate Authority (SSL) Business". www.businesswire.com. Retrieved 2017-10-31.
  15. ^ Wembridge, Mark (May 2, 2012). "Kewill agrees to US private equity buyout". Financial Times. Retrieved November 15, 2018.
  16. ^ "Secretive cyber warfare firm NSO Group explores sale: sources". Reuters. November 2, 2015.
  17. ^ Pender, Terry (2017-07-17). "Sandvine accepts $562M takeover bid". TheRecord.com. Retrieved 2018-02-02.
  18. ^ Martin, Dylan. "Boston Startups That Were Acquired or Shut Down in May". BostInno. BostInno. Retrieved 26 June 2017.
  19. ^ "Francisco Partners to Take VeriFone Private for $3.4 Billion". Bloomberg.com. Retrieved 2018-06-25.

External links[edit]