Private equity firm Great Hill Partners agreed to acquire a majority stake in software provider Fusion Risk Management Inc. from buyout firm Vista Equity Partners
(Bloomberg) — Private equity firm Great Hill Partners agreed to acquire a majority stake in software provider Fusion Risk Management Inc. from buyout firm Vista Equity Partners
As part of the deal, Vista will remain a minority shareholder alongside existing backers Catalyst Investors and Level Equity Management, the companies said in a statement, confirming an earlier report by Blooomberg News. Financial terms of the deal weren’t disclosed.
The agreement values the software provider for IT risk and incident management services at more than $500 million, according to a person familiar with matter, who asked not to be identified because the information is private.
Great Hill Managing Director Chris Busby said Fusion “fits the exact profile of the type of business we aim to invest in.” The company “has tremendous potential to capitalize on opportunities ahead amid significant compliance and regulatory tailwinds and to continue deepening its strong, longstanding customer relationships,” he said.
Fusion was started in 2006 by a team of founders including David Nolan, Bob Sibik, John Jackson and Victor Fricas. With a client base of more than 400 customers, the company offers a range of risk-management tools such as emergency notification systems, critical data integration and disaster recovery. In 2017, the company raised $41 million in a Series C funding round led by Catalyst Investors.
Vista in 2019 bought Fusion through its Endeavor Fund with a goal of growing its operational resilience services. According to data provider PitchBook, Fusion raised $9.2 million in debt last August.
Austin, Texas-based Vista has remained active across the growth-tech sector, recently disclosing an investment in environmental, social and governance software developer Benchmark Gensuite also from its Endeavor Fund.
Boston-based Great Hill announced last month that it was expanding the firm’s presence internationally with a new London office. The firm’s portfolio has included assets such as home goods distributor Wayfair Inc., luxury consignment retailer RealReal Inc., identity verification software maker Jumio and custom apparel manufacturer Custom Ink.
“We’re confident that Great Hill will be an invaluable partner,” Fusion Chief Executive Officer Michael Campbell said in a statement.
(Updates throughout with official announcement, commentary)
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