Appfire's owners explore sale of stake in collaboration software maker, sources say
By Milana Vinn
NEW YORK, Aug 16 (Reuters) -Investment firms TA Associates and Silversmith Capital Partners are exploring options including the sale of a stake in Appfire, in a deal that could value the collaboration software maker they own at more than $2 billion, according to people familiar with the matter.
TA and Silversmith have tapped investment bankers at JPMorgan Chase JPM.N and Lazard LAZ.N as they weigh selling up to a 60% stake in Appfire, the sources said, adding that the owners could roll over a portion of their stakes as part of a potential deal.
The sources, who requested anonymity as the discussions are confidential, said potential buyers of the stake include other private-equity firms.
Appfire is hoping to command a valuation equivalent to more than 20 times its earnings before interest, taxes, depreciation and amortization of roughly $100 million, the sources said. The company is expected to generate close to $300 million in revenue for 2024, the sources said, adding it is growing revenues by 30% annually.
Silversmith, JPMorgan, and Lazard declined to comment. TA Associates and Appfire did not respond to requests for comment.
Burlington, Massachusetts-based Appfire provides workflow collaboration software to customers, including German shoe and sports apparel giant Adidas ADSGn.DE, e-signature company Docusign DOCU.O, and NASA.
Its software applications are sold through platforms of large technology corporations including Microsoft MSFT.O, Salesforce CRM.N, Atlassian TEAM.O, and monday.com.
Smartsheet SMAR.N, a U.S. maker of workplace collaboration software with a market value of $6.6 billion, has tapped investment bankers after attracting acquisition interest from buyout firms, Reuters reported in July.
TA picked up a significant stake in Appfire in 2021, a year after Silversmith made a $49-million investment in the company.
Reporting by Milana Vinn in New York; Editing by Rod Nickel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.