Francisco Partners

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Francisco Partners
Private
IndustryPrivate equity
Founded1999; 20 years ago (1999)
FoundersDipanjan Deb, Benjamin Ball, Neil Garfinkel, Sanford R. "Sandy" Robertson, David Stanton
Headquarters
Key people
Dipanjan Deb (CEO), David Golob (CIO), Ezra Perlman and Deep Shah (Co-Presidents), Tom Ludwig (COO)
AUM$11.9 billion [1]
Number of employees
74[1]
Websitewww.franciscopartners.com

Francisco Partners is an American private equity firm focused exclusively on investments in technology and technology-enabled services businesses.[2] Founded in August 1999 and based in San Francisco and London, Francisco Partners Management L.P.[3] has raised approximately USD $14 billion in committed capital.[4] The firm currently has five active funds[5][4] and roughly 50 current portfolio companies,[6] including Verifone,[7] Renaissance Learning, Bomgar, GoodRx, Quest, BluJay (formerly Kewill),[6] ClickSoftware Technologies,[8] SmartBear Software,[9] and SonicWall.[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. The firm primarily invests in maturing or mature[11] technology and technology-related companies[5] in areas such as software, internet,[8] healthcare, communications, hardware and technology services. The firm typically acquires a majority or controlling stake in its portfolio companies, but will occasionally acquire a minority interest in a company with board representation.[11] Specializing in technology buyouts, Francisco has acquired former venture capital-backed companies as well as many divisions of large conglomerates and IT companies worldwide.[12]

History[edit]

1999-2011[edit]

Francisco Partners was founded in August 1999[11] in Menlo Park, California, during the emergence of dedicated technology buyout firms.[13] Founders Sanford Robertson, Dipanjan Deb, David Stanton, Benjamin Ball, and Neil Garfinkel came from a variety of private equity firms. Robertson had been the founder of the technology-focused investment bank Robertson Stephens, while Deb[14] left TPG Capital in August 1999 to help found the firm.[13] Among its notable early investments, in 2000 the firm paid $375 million in cash to purchase 90% of Advanced Micro Devices' communications products division.[15] Francisco Partners then raised $800 million in 2002 to purchase 90% of Global eXchange Services, a unit of the General Electric Company[16][17] handling sales operations for about 30,000 multinational companies.[16]

The firm purchased NPTest in 2003, the semiconductor-testing unit of Schlumberger,[18] and by the following year Francisco Partners had more than 30 active portfolio companies.[12] Francisco Partners purchased Smart Modular from the Solectron Corporation in 2004, with Smart Modular going public two years later.[19] From 2005 until 2010 the firm owned the software company RedPrairie.[20] In 2006 the company led a leveraged buyout of Metrologic Instruments, which makes laser and holographic-based scanners,[21] and also purchased WatchGuard.[10] The firm purchased API Healthcare in 2008[20] and by 2010 Francisco Partners' other healthcare holdings included AdvancedMD, Healthland, QuadraMed, and T-System.[22]

2012-2015[edit]

By 2012, the Francisco Partners' funds had about $7 billion in capital and invested "exclusively in technology companies across sectors including semiconductors, capital equipment and electronics components."[23] That year the company acquired the software company Ichor from American Industrial Partners,[24] as well as Plex Systems[25] and Kewill.[26] The firm invested in Paymetric in 2013,[27] selling the company to Vantiv in Atlanta, Georgia four years later.[28] After acquiring the e-commerce services company Avangate in 2013,[29] in 2014 the firm invested in the software company Prosper, with Francisco Partners' executive David Golob becoming a Prosper director.[30] Also in 2014 Francisco Partners invested in the information technology company CoverMyMeds[2] and paid $120 million for a majority stake[31][32] in the controversial spy company NSO Group.[3] The firm completed raising about $2.9 billion for its fourth fund in 2015.[5] That year the firm also purchased the California-based analytics company Procera Networks for $240 million and the Israeli workplace management company ClickSoftware Technologies for $438 million.[8] The firm invested in GoodRx in 2015 as well.[33]

2016-2019[edit]

Francisco joined with Elliott Management in June 2016 to buy the SonicWall[10] and Quest Software[34] subsidiaries from Dell as part of the spinoff of Dell Software.[35][10] The SonicWall investment attracted some controversy in the press, as Francisco Partners had also invested in the competitor WatchGuard, going against norms in the private equity industry.[10] Also in 2016, the firm sold Aesynt to Omnicell for $275 million and took Ichor Holdings public with an initial public offering.[34][36] In late 2016, Francisco Partners launched its Agility fund, raising approximately $600 million of committed capital to focus on smaller technology deals.[37] Shortly afterwards, Francisco Partners invested in Dynamo Software,[38] Pet Circle,[39] Discovery Education,[40] and MyOn, the latter of which was sold in 2018.[41] Additional investments in 2016 and 2017 included companies such as SmartBear Software,[9] iconectiv,[42] Connecture Inc.,[43] Betterment,[44] and Sintec Media.[34]

In 2017, Francisco Partners sold CoverMyMeds to McKesson[45] and Paymetric to Vantiv,[46] and also sold PayLease[47] and Corsair.[48] Francisco Partners bought, and subsequently sold, James Allen.com in 2017.[49] In June 2017, Francisco Partners also acquired Sandvine, a Canadian public company that was combined with Procera.[50] Francisco Partners was named Private Equity Firm of the Year by Mergers & Acquisitions in 2017.[34] The firm's fifth fund, Francisco Partners V, was formed at the end of 2017 with approximately $4 billion of committed capital.[51] The year after Francisco Partners V's launch, the firm acquired Bomgar Corporation,[52] Renaissance Learning,[53] and LegalZoom.[54] In June 2018 Francisco Partners purchased VeriFone[7] for $3.4 billion. Also in 2018, Blackstone’s Strategic Capital Group and Goldman Sachs’ Petershill program acquired a minority stake in Francisco Partners.[51]

Offices and employees[edit]

The firm is based in San Francisco, California with an additional office in London, United Kingdom.[3][11] Francisco Partners is currently led by CEO Dipanjan Deb, one of the firm's founders,[5] along with Ezra Perlman and Deep Shah, co-presidents, and David Golob, chief investment officer.[14]

List of current investments[edit]

With around 50 current portfolio companies, Francisco Partners is an investor in or owner of the following companies:[6]

References[edit]

  1. ^ a b Form ADV filed with the SEC
  2. ^ a b Suttell, Scott (November 9, 2014), CoverMyMeds receives 'growth investment' from California-based FranciscoPartners, Crain's Cleveland Business
  3. ^ a b c d Thomas Fox-Brewster (August 25, 2016). "Everything We Know About NSO Group: The Professional Spies Who Hacked iPhones With A Single Text".
  4. ^ a b "Francisco Partners - About". www.franciscopartners.com. Retrieved 2017-07-10.
  5. ^ a b c d e Porter, Kiel (May 22, 2017), Francisco Said to Target More Than $3 Billion for Tech Buyouts, Bloomberg
  6. ^ 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 ar as "Investments". Francisco Partners. Retrieved November 15, 2018.
  7. ^ a b c "Francisco Partners to Take VeriFone Private for $3.4 Billion". Bloomberg.com. Retrieved 2018-06-25.
  8. ^ a b c d Chen, Angela (30 April 2015). "ClickSoftware to Be Bought by Francisco Partners for $438 Million". Wall Street Journal. Retrieved 6 September 2015.
  9. ^ a b c Martin, Dylan. "Boston Startups That Were Acquired or Shut Down in May". BostInno. BostInno. Retrieved 26 June 2017.
  10. ^ a b c d e f Gillian Tan (July 12, 2016). "How's This for a Private Equity Conflict?".
  11. ^ a b c d Company Overview of Francisco Partners Management LLC, Bloomberg
  12. ^ a b Rivlin, Gary (May 15, 2004). "Bring Us Your Small, Unloved Start-Ups". The New York Times. Retrieved November 15, 2018.
  13. ^ a b "You ain't seen nothing yet". EDN Network. January 1, 2000. Retrieved November 15, 2018.
  14. ^ a b Executive Team, FranciscoPartners.com
  15. ^ "Company News; Advanced Micro to Sell Most of Communications Unit". New York Times. May 23, 2000. Retrieved November 15, 2018.
  16. ^ a b Deutsch, Claudia (June 25, 2002). "G.E. Is Selling Off Most of Electronic Commerce Business". New York Times. Retrieved November 15, 2018.
  17. ^ "Citing a Tight Bond Market, G.E. Makes a Loan to a Buyer". New York Times. September 28, 2002. Retrieved November 15, 2018.
  18. ^ Company News; Schlumberger to Sell Semiconductor-Testing Unit, Bloomberg News, June 25, 2003
  19. ^ Smart Modular Technologies in $645 Million Buyout, The New York Times, April 26, 2011
  20. ^ a b Bolton, Guy (August 14, 2010), Firm's tracking software attracted new CEO, Journal Sentinel
  21. ^ Francisco Partners to Lead Metrologic Buyout, The New York Times, September 13, 2006
  22. ^ a b Xavier, Jon (October 25, 2010), PE firm buys Quantros majority, Silicon Valley Business Journal
  23. ^ UPDATE 1-PE firm Francisco Partners to buy Kewill for 89.5 mln stg, Reuters, May 2, 2012
  24. ^ Siemers, Erik (January 5, 2012), Francisco Partners acquires Tualatin's Ichor Systems, Portland Business Journal
  25. ^ a b Empson, Rip (December 18, 2012), Plex Systems Lands $30M From Accel To Help Global Manufacturing Transition To The Cloud, TechCrunch
  26. ^ a b Wembridge, Mark (May 2, 2012). "Kewill agrees to US private equity buyout". Financial Times. Retrieved November 15, 2018.
  27. ^ Karkaria, Urvaksh (August 28, 2013), San Francisco Partners Takes Majority, Atlanta Business Chronicle
  28. ^ Hudson, Phil W. (April 26, 2017), Francisco Partners backed Atlanta tech company Paymetric to be acquired by Vantiv, Atlanta Business Chronicle
  29. ^ a b Lara-Cinisomo, Vincent (October 7, 2013), Francisco Partners acquires Avangate, Silicon Valley Business Journal
  30. ^ a b J. de la Merced, Michael (May 4, 2014), Prosper, a Peer-to-Peer Lender, Raises $70 Million, The New York Times
  31. ^ a b "Secretive cyber warfare firm NSO Group explores sale: sources". Reuters. November 2, 2015.
  32. ^ Yadron, Danny (August 1, 2014). "Can This Israeli Startup Hack Your Phone?". The Wall Street Journal. Retrieved 2016-08-25.
  33. ^ Term Sheet -- Thursday, October 8, Fortune, October 8, 2015
  34. ^ a b c d e f g "Francisco Partners earns Private Equity Firm of the Year". Mergers & Acquisitions. Retrieved 2017-07-05.
  35. ^ "Francisco Partners and Elliott Management to Acquire the Dell Software Group". DELL. 20 June 2016. Retrieved August 23, 2016.
  36. ^ Francisco Partners to sell Aesynt for $275m. Pitchbook, November 2, 2015
  37. ^ Term Sheet -- Monday, October 24, Francisco Partners, October 24, 2016
  38. ^ Term Sheet -- Tuesday, October 3, Fortune, October 3, 2017
  39. ^ Term Sheet -- Tuesday, November 14, Fortune, November 14, 2017
  40. ^ Discovery to shed education business for $120M as it prepares to leave Silver Spring, Washington Business Journal, February 27, 2018
  41. ^ Renaissance Learning Turns the Page with Purchase of Minnesota Firm, Xconomy, March 22, 2018
  42. ^ a b UPDATE 1-Ericsson says Francisco Partners to invest $200 mln in iconectiv, Reuters, March 7, 2017
  43. ^ a b Kirchen, Rich (March 14, 2016), Connecture receives $52M investment from Francisco Partners-led group, Milwaukee Business Journal
  44. ^ a b Chparro, Frank (July 21, 2017), Betterment just landed an $800 million valuation, Business Insider
  45. ^ Columbus-based CoverMyMeds to be acquired by McKesson for $1.1 billion, Cleveland.com, March 1, 2018
  46. ^ Francisco Partners backed Atlanta tech company Paymetric to be acquired by Vantiv, Atlanta Business Chronicle, April 26, 2017
  47. ^ Vista Equity Partners Invests in Paylease, San Diego Business Journal, July 3, 2017
  48. ^ Term Sheet -- Wednesday, July 26, Fortune, July 26, 2017
  49. ^ Signet Buys James Allen; Comp Sales Rise, jckonline.com, August 24, 2017
  50. ^ a b Pender, Terry (2017-07-17). "Sandvine accepts $562M takeover bid". TheRecord.com. Retrieved 2018-02-02.
  51. ^ a b Goldman, Blackstone Buy Minority Stake in Francisco Partners, Bloomberg, July 13, 2018
  52. ^ Term Sheet -- Tuesday, April 3, Fortune, April 3, 2018
  53. ^ Renaissance Learning to Get New Private Equity Owner, Change CEOs, Xconomy, May 4, 2018
  54. ^ LegalZoom reaches $2 billion valuation, L.A. Biz
  55. ^ "Francisco Partners Announces Acquisition of Comodo’s Certificate Authority (SSL) Business". www.businesswire.com. Retrieved 2017-10-31.

External links[edit]