Based in Oregon, Jama Software supports organisations spanning across multiple sectors to intelligently enhance their development process to mitigate defects, delays, cost overruns, and recalls
Jama Software to be acquired by Francisco Partners in $1.2bn deal. (Credit: Gerd Altmann from Pixabay)
US-based investment firm Francisco Partners has agreed to acquire requirements management and traceability solution provider Jama Software from Insight Partners, Madrona Ventures, and other shareholders for $1.2bn.
Under the terms of the definitive agreement, Jama Software CEO Marc Osofsky will personally make a reinvestment and continue to lead the technology company.
Osofsky said: “We are thrilled to work with Francisco Partners and leverage their expertise as we further accelerate our rapid expansion across enterprises, industries and continents.
“We thank Insight Partners, who have been tremendous supporters of Jama Software’s growth over the past six years.”
In 2018, Jama Software secured $200m in a growth equity investment round. It was led by Insight Venture Partners and had the participation from Madrona Venture Group.
According to Jama Software, the investment by Francisco Partners builds on an organic tripling of recurring revenue in five years to further strengthen the company’s leadership position in intelligent engineering management.
Francisco Partners partners Petri Oksanen and Mario Razzini said: “The engineering management market is in the early stages of a fundamental transformation which Jama Software is at the forefront of.
“We are ecstatic to be partnering with Marc and his team in continuing to execute on their industry-leading vision and strategy.”
Based in Oregon, US, Jama Software supports organisations to intelligently enhance their development process to mitigate defects, delays, cost overruns, and recalls.
The firm’s customer base is said to span across the automotive, life sciences, semiconductor, medical device, aerospace and defense, consumer electronics, industrial manufacturing, financial services, and insurance industries.
The transaction with Francisco Partners is contingent upon customary conditions.
Evercore is the exclusive financial adviser to Jama Software while Insight Partners and Willkie Farr & Gallagher served as legal advisers.
J.P. Morgan Securities and Paul Hastings were financial adviser and legal adviser to Francisco Partners respectively.