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09/2018

OPTIMIZELY (EX EPISERVER) acquired by INSIGHT VENTURE PARTNERS

UNITED STATES Software / MarTech EV 1b - 4b USD

Context

In a significant move within the marketing technology landscape, Insight Venture Partners has entered into a definitive agreement to acquire Optimizely from Accel-KKR. This transaction represents a major milestone for Optimizely, following a period of "hyper-growth" characterized by the successful transition to a SaaS-led model and the expansion of its Digital Experience Cloud™ platform. The deal is structured as a strategic leveraged buyout (LBO) aimed at accelerating Optimizely's global product roadmap and enhancing its go-to-market initiatives. Under the previous ownership of Accel-KKR, the target successfully integrated several strategic acquisitions and built a robust channel ecosystem, resulting in a leadership position within the Digital Experience Platform (DXP) market. Insight Venture Partners intends to leverage its deep operational expertise in the software sector to further scale Optimizely’s presence in the global digital transformation market, which is projected to reach institutional scales.

In the past, the company had already been the subject of several LBOs, notably led by Ik Partners in 2010 and Accel-Kkr in 2014. These multiple LBO cycles illustrate the strong appeal for this type of asset.

OPTIMIZELY (EX EPISERVER), which reported an EBITDA margin of in 2018, 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

Optimizely is a global provider of digital experience solutions, offering a comprehensive platform that integrates intelligent content management, digital commerce, and omnichannel marketing automation. Headquartered in the United States, the company serves a diverse portfolio of mid-to-large scale enterprises, enabling them to streamline the end-to-end customer journey through its flagship "Digital Experience Cloud." By leveraging artificial intelligence and machine learning, Optimizely provides organizations with the tools necessary to deliver highly personalized and data-driven interactions across multiple digital touchpoints. From a market positioning perspective, Optimizely is widely recognized by industry analysts as a Leader in the Digital Experience Platform (DXP) and Web Content Management (WCM) segments. It competes effectively against legacy enterprise suites by offering a more agile, cloud-native architecture that facilitates faster time-to-market. The company's business model is primarily driven by a high-margin Software-as-a-Service (SaaS) revenue stream, supplemented by a robust global partner ecosystem that handles large-scale implementations.

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Historical Financials (USD)

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Other operations with OPTIMIZELY (EX EPISERVER)

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
12/2014ACCEL-KKROPTIMIZELY (EX EPISERVER)UNITED STATESMarTech
11/2010IK PARTNERSOPTIMIZELY (EX EPISERVER)UNITED STATESMarTech

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 OPTIMIZELY (EX EPISERVER) by INSIGHT VENTURE 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: optimizely (ex episerver)

Acquirer: insight venture partners