Updata Partners, a leading technology-focused growth equity firm, says the sale of portfolio company iContact to Vocus for $169 million marks Updata’s third portfolio exit in three months, following the sales of Jobs2Web to SuccessFactors in December for $110 million and Numara Software to BMC in January for $300 million.
The sale represents a 2.7x return on invested capital and a 31% IRR for Updata.“Updata’s contribution was instrumental in iContact’s rapid growth and successful exit. Their strong operational experience and deep understanding of the software-as-a-service model catalyzed our breakout performance.”
In a recent interview, a Novak Biddle venture capitalist told the TechJournal that many large firms are flush with cash and he expects to see increased merger and acquisition activity as firms use M&A to grow. That’s good for the entire entrepreneurial ecosystem.
Updata first invested in iContact in 2007
Carter Griffin, general partner at Updata Partners and iContact Board member said, “The outcome is the culmination of a lot of hard work by Ryan Allis and his team and the positive dynamics of their market. The transaction also serves to reinforce Updata’s strategy of backing high growth technology companies.”
Research Triangle, NC-based iContact provides email marketing and social media marketing software-as-a-service to small and medium businesses. Updata initially invested in iContact in 2007, providing the first institutional capital.
Since the investment, iContact has grown rapidly and is now the largest privately-held provider of SMB email marketing software. The combination of iContact and Vocus creates the clear leader in cross channel integrated marketing software.
iContact Chief Executive Officer, Ryan Allis, commented, “Updata’s contribution was instrumental in iContact’s rapid growth and successful exit. Their strong operational experience and deep understanding of the software-as-a-service model catalyzed our breakout performance.”
Allis himself has been a strong advocate of “social entrepreneurship” and giving back to the community. He has authored a book about how he made his dream of creating a million dollar company come true — and has exceeded that dream.
For more information, please visit www.updatapartners.com.