The Breakdown You Need to Know
Vista will buy the majority stake from Welsh Carson Anderson & Stowe, with the latter keeping a minority stake, according to the Wall Street Journal. Smith’s business was among the early private equity firms to focus on software-as-a-service (SaaS) companies and has since become one of the largest owners of enterprise software products in the world.
Quick Base claims to have more than 5,400 customers, and the publication reported its annual revenue as roughly $125 million. They’ve bagged A-list customers like Google, Sprint and even some high flying love from Southwest Airlines.
Back in 2016, Quick Base was one of three companies spun out of Intuit, best known for their TurboTax and QuickBooks software. CultureBanx reported as more people become interested in coding, platforms like Google’s App Maker program and Microsoft’s PowerApps have gained in popularity, which could stymie Quick Base’s growth long term.
The DIY coding company plans to use Vista’s investment to grow its products, enhance workflow automation and to invest in artificial intelligence along with machine learning tools. “Vista shares our vision and our passion, and we could not be more excited to partner with their team to further accelerate our growth,” said Rick Willett, CEO of Quick Base, in a statement.
Vista’s Vast Investment Thesis
Vista has been heavy into everything from SaaS and even advertising. Three years ago, the private equity company bought a majority stake in Mediaocean valuing it at $720M. The company is a leader in the advertising software and services space, enabling over $100B in ad spend and was early in working toward automating the process of buying TV ads.
They also acquired Marketo in 2017, which is a leader in the marketing automation sector. Companies use its platform for things like re-targeting display ads. Additionally the private equity giant bought a majority stake in Integral Ad Science last year at a valuation of $850 million, according to Axios. Since Vista is figuring out a couple back doors to upend the two advertising behemoths Google and Facebook, with Mediaocean and Marketo, imagine what they could do in the software development space through coding.
For Vista the sky seems to be the limit as they are currently raising capital for their new buyout fund, Vista Equity Partners Fund VII LP. Since last year they have collected more than $13 billion fund and it will be interesting to see what they invest in next.