H.I.G. Growth Partners has completed the sale of ProsperOps to Flexera, marking an exit from the cloud cost optimisation specialist after just over three years of ownership.

ProsperOps, which is headquartered in Austin, Texas, provides autonomous FinOps software that helps enterprises optimise cloud spending across Amazon Web Services, Google Cloud Platform, and Microsoft Azure. The buyer, Flexera, is a portfolio company of Thoma Bravo.

H.I.G. Growth invested in ProsperOps in December 2022 and worked closely with management to scale the business and expand its product offering. During the holding period, ProsperOps increased annual recurring revenue more than six-fold and lifted EBITDA by more than nine-fold, according to the firm. The platform also broadened from a single-cloud solution into a multi-product offering supporting all three major cloud providers.

ProsperOps now manages approximately $6bn in annual cloud spend on behalf of its customers. Founded in 2018, the company focuses on automating cloud rate optimisation and workload optimisation, replacing manual, recommendation-based processes used by finance, engineering, and procurement teams.

Ross Hiatt, managing director and head of H.I.G. Growth, said: “Since our investment in ProsperOps, we have been proud to partner with Chris and the broader team to help build a clear leader in FinOps automation.” He added that the company’s “focus on product innovation, disciplined execution, and customer outcomes has driven exceptional growth and platform expansion”.

Albert Koh, managing director at H.I.G. Growth, added: “ProsperOps’ evolution over the past several years reflects the power of combining a world-class management team with a clear vision for product innovation.”

H.I.G. Capital manages about $74bn of capital across its strategies. The ProsperOps exit underscores continued private equity interest in cloud infrastructure software businesses with recurring revenues and exposure to enterprise digital transformation.

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