Customer-centric commerce software specialist Avangate has been bought by technology-focused venture capital firm Francisco Partners in a bid to ramp up its growth plans.
The acquisition sets up Avangate – which rebooted its EMEA operation earlier this year in a bid to give e-commerce rivals such as Netsuite a run for their money – for expansion outside its domestic, US, market, particularly in Europe, where CEO Carl Theobald said he saw strong growth potential, particularly through channels.
Francisco Partners, which has around $7bn worth of assets under management, picked on Avangate due to its position at “the convergence of digital goods commerce and subscription billing” according to principal My Le Nguyen.
Speaking to MicroScope, Theobald said the purchase opened up a variety of options for the firm, a future IPO being one, although he emphasised that would be a long term option.
“Our focus will be on running the company as effectively as possible with the emphasis on growth,” he said. “Francisco is investing in a high-growth company whose strategy, vision and team they believe in. Nobody is in any hurry to find an exit.”
Financial terms of the deal were not disclosed.