Francisco Partners has inked a deal to buy FrontRange Solutions, a publicly held CRM and voice application services provider. The acquisition, valued at $200 million (€169 million), is expected to close in roughly 90 days.
FrontRange, founded in 1989 as GoldMine Software, targets the small-to-medium-enterprise market. The company offers CRM software for sales and costumer support and also provides consulting, implementation and training services. Its customers include Coca-Cola, Bechtel Corp. Bank of America, Campbell Soup and others.
The company is based in Colorado Springs, Colorado and is currently listed on South Africa’s JSE exchange. FrontRange also maintains offices in Australia, France, Germany, Italy, Singapore and the UK.
“FrontRange has a strong market position, great product franchises…over 140,000 customers, and a global partner channel that provides broad market coverage,” Francisco Partners managing director Neil Garfinkel said in a statement.
The company’s CEO, Michael McCloskey, expects the Francisco capital infusion to help spur continued growth for the company. “This investment…will enable FrontRange Solutions to continue to pursue our aggressive growth strategy,” he said, adding that the in the past two years the company has “invested heavily in both R&D and sales expansion, while continuing to increase [its] profitability”.
Calls to Francisco were not returned by press time.
The Menlo Park-based firm, which also has an office in London, is a technology specialist. The firm’s Web site identifies that it looks for companies facing a “critical inflection” point, such as management changes, strategic rationalisations, or growth opportunities, among others.
FrontRange was listed on the South African JSE exchange, even though the region only accounted for 4 percent of its sales. The company last year shifted its reporting from the rand to the dollar, and in FrontRange’s last annual report, the company said it had experienced 104 percent growth in earnings to $6.7 million, on revenues of $27.6 million, which had expanded by 25 percent in the 10 months ending April 30.