Key Takeaways
- • Vista Equity Partners has entered into a definitive agreement to acquire Applause, the Boston-based digital experience quality company, announced August 23, 2017.
- • Applause will continue to operate independently with no changes in executive leadership, with Doron Reuveni remaining President and CEO.
- • The transaction is expected to close in the coming weeks, subject to customary closing conditions and regulatory approvals.
- • Vista, which has more than $30 billion in cumulative capital commitments, positions the deal as a platform to accelerate Applause's growth in digital testing, user feedback and market insights.
- • Goldman Sachs & Co. LLC advised Applause as lead financial advisor, while Jefferies LLC advised Vista; Latham & Watkins and Kirkland & Ellis served as legal advisors.
Summary
Applause, described by the company as the global leader in digital experience quality, has agreed to be acquired by Vista Equity Partners, the U.S.-based investment firm focused on software, data and technology-enabled businesses. The announcement was made on August 23, 2017, from Boston, Massachusetts. According to the companies, the deal combines Applause's Digital Experience solutions and broad customer adoption with Vista's strategic and operational expertise in scaling high-growth technology companies.
Applause operates a SaaS platform that connects clients' software development processes with what it describes as the largest global community of on-demand digital experience experts. The company says its approach reduces the time and cost of delivering digital experiences across mobile apps, websites and IoT devices. Doron Reuveni, President and CEO of Applause, said the transaction validates the company's mission to deliver flawless digital experiences and that the firm looks forward to partnering with Vista's talent and expertise as it enters its next stage of growth.
Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners, said the market demand for Applause "has never been stronger," citing businesses that treat digital customer experiences as the primary means of competition. Vista stated it aims to spur innovation, accelerate growth and extend Applause's market leadership in community-driven digital experiences.
The transaction is expected to close in the coming weeks and remains subject to customary closing conditions and regulatory approvals. Financial terms were not disclosed in the announcement. Goldman Sachs & Co. LLC served as lead financial advisor to Applause, Jefferies LLC as financial advisor to Vista, Latham & Watkins LLP as legal advisor to Applause, and Kirkland & Ellis LLP as legal advisor to Vista.
Applause operates a SaaS platform that connects clients' software development processes with what it describes as the largest global community of on-demand digital experience experts. The company says its approach reduces the time and cost of delivering digital experiences across mobile apps, websites and IoT devices. Doron Reuveni, President and CEO of Applause, said the transaction validates the company's mission to deliver flawless digital experiences and that the firm looks forward to partnering with Vista's talent and expertise as it enters its next stage of growth.
Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners, said the market demand for Applause "has never been stronger," citing businesses that treat digital customer experiences as the primary means of competition. Vista stated it aims to spur innovation, accelerate growth and extend Applause's market leadership in community-driven digital experiences.
The transaction is expected to close in the coming weeks and remains subject to customary closing conditions and regulatory approvals. Financial terms were not disclosed in the announcement. Goldman Sachs & Co. LLC served as lead financial advisor to Applause, Jefferies LLC as financial advisor to Vista, Latham & Watkins LLP as legal advisor to Applause, and Kirkland & Ellis LLP as legal advisor to Vista.
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