Boston-based private equity and buyout firm TA Associates has completed a $200 million buyout of Global 360, a software and services company that helps businesses with compliance and organization.
TA led the investment along with Technology Crossover Ventures, which specializes in providing capital to technology companies, and JMI Equity, a private equity firm exclusively focused on software and business services.
Global 360’s flagship product is the Business Process Management Suite (BPMS), which helps companies manage their business processes by automating and monitoring daily functions. Companies have been increasingly turning to such software in order to conduct business more efficiently as well as to make sure they are in compliance with all applicable rules and regulations.
The acquisition follows a number of recent investments in the business software sector. Last week TA announced it will buy securities software-maker eSecLending, and in December the firm bought Numara Software, a maker of IT and asset management programs, for $200 million.
“This is one of the fastest-growing and unfortunately [one of the] few successful sectors within software right now,” said Vivian Wu, a vice president at TA Associates who will join the company’s board of directors. “It’s becoming increasingly a top CIO priority, whether because of compliance or because large corporations are seeing how important it is to manage their processes.”
Industry analysts estimate that worldwide license revenues for the business process management market was at $700 million in 2005, up from $600 million in 2004. Fourteen percent annual growth is expected over the next five years, according to TA.
Wu said Global 360 is expected to grow at 20 percent to 25 percent year over year, making its rate of growth higher than that of the market itself. Global 360 clients include seven of the world’s top ten insurance companies, 16 of the world’s top 20 banks and numerous US government agencies.