mynth
03/2024

JAMA SOFTWARE acquired by FRANCISCO PARTNERS

UNITED STATES Software / Engineering & Design Software EV 1b - 4b USD

Context

Francisco Partners has entered into a definitive agreement to acquire 100% of the share capital of Jama Software from funds managed by Insight Partners and Madrona Ventures. The transaction results in a full ownership transfer, with existing CEO Marc Osofsky reinvesting in the company to maintain leadership and continuity. The acquisition is a high-conviction bet on the "intelligent engineering management" sector. Having observed an organic tripling of recurring revenue over a five-year period, Francisco Partners aims to leverage its specific software sector expertise to accelerate Jama’s expansion across new industrial verticals and international markets. The thesis centers on Jama's ability to capitalize on the fundamental transformation occurring within the engineering management market. This deal underscores the continued institutional appetite for vertical SaaS platforms that solve mission-critical problems for highly regulated engineering industries.

JAMA SOFTWARE, which reported an EBITDA margin of in 2024, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (15.3x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Jama Software provides a critical software platform for multidisciplinary engineering organizations, specializing in requirements management and product traceability. Its core product, Jama Connect, serves as a centralized hub for engineering teams to manage complex development lifecycles, effectively reducing risks such as defects, rework, and costly delays. The company’s value proposition is centered on "Live Traceability," which bridges the gap between disconnected engineering processes, allowing for streamlined collaboration and compliance in highly regulated sectors. The firm’s client base is diverse, spanning industries with rigorous standards such as automotive, medical devices, aerospace, and semiconductor manufacturing. Jama Software differentiates itself through deep vertical integration and a SaaS-native approach, positioning itself as a vital component in the digital transformation of product development.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2024
2023

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REFERENCES

Valuation range: EV 1b - 4b USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of JAMA SOFTWARE by FRANCISCO PARTNERS are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: jama software

Acquirer: francisco partners