Source: Insight Venture Partners
Insight Venture Partners, a leading private equity firm focused on software and technology investments, today announced the acquisition of, and investment in, eCommerce Industries, Inc. (ECI2).
ECI2, the leading developer of industry-specific business systems, will use the funds to support growth into new vertical markets through new product development and the acquisition of quality enterprise resource planning (ERP) companies with deep domain expertise. Deven Parekh, Ben Levin and Ryan Hinkle will join ECI2's Board of Directors. Terms of the transaction were not disclosed.
ECI2 is a premier provider of ERP business software to small and medium- sized enterprises (SME) that are dealers, distributors, or resellers in specific vertical industries - these include business products, IT consumables, jan/san products, office furniture, and machines and equipment. The Company was founded in 1999 and has become a market-leading vendor in the U.S.A. and the United Kingdom of integrated turnkey systems that cover a broad array of SME business functions such as back-office, e-commerce, supplier connectivity and mobile solutions.
"Insight Venture Partners has a proven track record of helping software and technology companies build on their success," said Dan Pritchard, chief executive officer of ECI2. "We look forward to taking advantage of Insight's software industry expertise and financial strength to fully execute on our next phase of growth and consolidation. The investment endorses management's vision and will strengthen our ability to meet the expectations of customers, partners and employees."
"ECI2 is the clear leader of industry-specific business solutions in their chosen markets - helping their customers to build profitable, data-driven businesses," said Deven Parekh, managing director of Insight Venture Partners. "We are excited by the subscription based, recurring revenue business model, which provides a platform for the Company to grow organically and through the acquisition of quality companies with domain expertise. The Company is building off its broad base of customers and great track record of sales growth and profitability."
In conjunction with the closing of the investment, Insight supported ECI2's acquisition of Britannia Inc., a leader in office product systems for dealers. This acquisition strengthens ECI2's position in the office product market and is consistent with the management's strategy of building market share in current verticals. Also as part of the transaction, existing investors including NEA and Accel Partners chose to roll-over a minority investment in the Company.
ECI2 received financial advice from Friedman, Billings, Ramsey & Co. and legal advice from Cooley Godward LLP. Insight was represented by Willkie Farr & Gallagher LLP.