Automic Software, a leader in business automation just ended its best ever year. Having doubled revenues and tripled its EBITDA since 2012, this investment is another testament to how EQT applies its entrepreneurial approach to help its portfolio companies accelerate growth.
An Austrian company called UC4, today renamed to Automic, caught EQT’s attention early in 2012. The market dynamics were attractive and the company produced recurring revenues from a diverse and stable customer base. “The obvious was a highly attractive growth company with an impressive customer line up and strong offering. But we also saw a greater potential, the idea was to support the company to take the next step on its development journey, drive expansion into the rapidly growing cloud and release automation market and establish Automic as a category leader in IT and business process automation," explains Per Franzén, Partner at EQT Partners, Investment Advisor to EQT VI.
Applying the industrial model
Since acquisition in August 2012, EQT has supported growth, operational improvements and strategic repositioning through a number of measures. The path has been clear from the start – the ambition is to transform Automic into the category leader in business automation.
In 2014, Automic acquired Orsyp, a French automation company that was integrated with substantial synergies. In addition, heavy investments were made in the US, with the latest plans being to open an innovation hub in Austin, Texas, focused on developing the next generation of products. Another example is boosting the company's sales and marketing functions further.
The management team of Automic has also been strengthened. A number of senior appointments, including the new CEO Todd DeLaughter, have been made. A top team is in place to steer Automic through the next stages of growth.
FY 2015/16 - A record year
The financial figures for FY April 2016 speak for themselves – a record Q4 and financial year was announced mid June showing that the measures are making its way. All product lines grew and growth in all regions accelerated, with Americas and APAC leading with more than 100% and 50% license growth respectively.
"EQT VI acquired a good Austrian company, completed a transformational French bolt-on acquisition, invested heavily in the US and recruited a new, mostly American management team. Revenues doubling and EBITDA tripling in less than four years, that’s quite an achievement. But the job isn’t finished yet, we look forward to continue working together with Todd and his team to reach even higher highs,” Per Franzén continues.
Automic is a perfect example of EQT’s model of building and developing companies using its global platform, sector experience and growth oriented approach. And Automic’s journey with EQT is far from over – EQT VI will continue to support the growth of the company. By driving further operational improvement, with a continued focus on sales and investment in innovation, the ambition is to take the company even further.