SEG Sector Deals: Vista To Acquire Xactly

Private equity firm Vista Equity Partners announced their intention to acquire Xactly, provider of a cloud-based incentive compensation software. This comes just two years after Xactly’s IPO. The $530 million (5.6x TTM revenue) transaction is expected to close in Q3.

Vista has had prior experience in the talent management sector with the acquisition of SumTotal in 2009, which it subsequently sold to private equity-backed SkillSoft in 2012. The announcement follows closely behind Saba Software’s (owned by Vector Capital) recent acquisition of publicly traded talent management vendor, Halogen Software.

 

 

 

Brief Transaction Details:

Enterprise Value (m)$535.9
TTM Seller Revenue (m)$95.5
TTM Seller EBITDA (m)-$12.4
TTM Revenue Multiple 5.6x
TTM EBITDA Multiple
Seller Business Descriptions:

Xactly Corporation provides cloud-based incentive compensation solutions for employee and sales performance management. See press release.

Buyer Business Description:

Vista Equity Partners is a leading private equity firm focused on investments in software, data and technology-enabled businesses.