Customer-relations technology company Gainsight Inc. is slated to have a new majority owner: private-equity firm Vista Equity Partners.
Gainsight agreed to a majority investment by Vista, which focuses on backing technology companies, according to a news release. The new investment is expected to help the San Francisco company expand its offerings, including products used for customer orientation and retention as well as to grow client lists.
The deal values the business at $1.1 billion, according to a person familiar with the matter.
Gainsight has completed multiple financing rounds since 2013, collecting $159 million in capital over that time. The company, which describes itself as the market leader in the customer-success segment, says its cloud-based software helps users prevent client churn by identifying at-risk customers, creating processes to mitigate their concerns and increasing client engagement.
Previous investors include: Insight Partners, Battery Ventures, Bain Capital Ventures, Bessemer Venture Partners, Salesforce Ventures, Summit Partners and Lightspeed Venture Partners.
In 2017 Gainsight held its most recent financing round, a $52 million Series E led by Lightspeed and with participation from previous investors with the addition of Cisco Investments, according to a news release at that time.
Insight Partners, Lightspeed and Bessemer are all rolling over stakes in the company, the person said about the latest transaction.
Vista’s investment in Gainsight is being made out of the firm’s roughly $17 billion flagship fund, whichclosed last year and included a significant contribution from the Austin, Texas, firm. Vista manages more than $73 billion and invests in software and technology companies.
Vista made headlines last week when it announced that co-founder Brian Sheth had resigned as president and left the firm. He had joined Vista founder Robert Smith in 2000 and was named president in 2010.
There was no reason specified for Mr. Sheth’s departure in a Thanksgiving Day news release. The exit came about a month after Mr. Smith reached a $140 million settlement with the Justice Department over a criminal tax investigation.
Source: Wall Street Journal
