- TA Associates and Silversmith Capital Partners consider selling part of their ownership in Appfire, which could be worth over $2 billion.
- JPMorgan Chase and Lazard have been engaged to advise on the potential sale of up to a 60% stake, with the possibility of the current owners retaining a portion of their investment.
OUR TAKE
Recent news that two leading investment firms, TA Associates and Silversmith Capital Partners, may sell their shares in collaboration software maker Appfire has reignited the industry buzz. The deal, which could be valued at more than $2 billion, is said to not only reflect Appfire’s market value, but could also herald a new investment move in the tech sector.
–Elodie Qian, BTW reporter
What happened
Investment firms TA Associates and Silversmith Capital Partners are reportedly considering the sale of their stakes in Appfire, a collaboration software company that could be valued at over $2 billion in the deal.
TA Associates is a leading global growth private equity firm that has been dedicated to investing in growing businesses for over 50 years. With a long-standing commitment to the technology and healthcare sectors, the firm has a deep understanding of the industries it serves and a proven track record of helping companies achieve their growth objectives.
Silversmith Capital Partners is a private equity firm that focuses on investing in growing technology and healthcare companies. Founded in 2015, the firm has quickly established itself as a partner of choice for founders and management teams looking to scale their businesses.
Sources close to the matter have indicated that JPMorgan Chase and Lazard have been engaged to advise on the potential sale of up to a 60% stake, with the possibility of the current owners retaining a portion of their investment.
The potential sale has piqued the interest of other private-equity firms, according to the anonymous sources who are privy to the confidential discussions. Appfire is aiming for a valuation that exceeds 20 times its earnings before interest, taxes, depreciation, and amortization, which are estimated to be around $100 million.
The company is also projected to generate nearly $300 million in revenue for 2024, with a consistent annual growth of 30%.
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Why it’s important
Appfire, based in Burlington, Massachusetts, provides workflow collaboration software to a range of clients, including Adidas, Docusign, and NASA. Its applications are marketed through platforms operated by major tech corporations such as Microsoft, Salesforce, Atlassian, and monday.com.
In a similar vein, Smartsheet, a U.S.-based workplace collaboration software company with a market value of $6.6 billion, has also sought the advice of investment bankers following acquisition interest from buyout firms, as reported by Reuters in July.
Smartsheet is a leading cloud-based platform for work management that automates business processes and enhances collaboration across teams. Headquartered in Bellevue, Washington, the company was founded in 2005 and has since become a prominent player in the SaaS (Software as a Service) industry.
Smartsheet’s intuitive platform allows users to manage, automate, and report on work at scale, providing a flexible and powerful solution for project management, workflow automation, and automated reporting.
TA Associates acquired a significant share in Appfire in 2021, following Silversmith’s $49 million investment in the company the previous year. Silversmith, JPMorgan, Lazard, TA Associates, and Appfire have all declined to comment on the matter.
