KKR to Acquire Majority Ownership in Agiloft
KKR has announced an agreement to acquire a majority stake in Agiloft, a leader in data-first contract lifecycle management (CLM). Existing investor FTV Capital will also invest additional capital, and JMI Equity will join as a new investor. This investment aims to help Agiloft expand its market share, innovate new product solutions, and enhance customer success. Agiloft's platform supports various departments by providing a comprehensive view of contract phases and integrating with other software systems for increased efficiency. The transaction includes a broad-based employee ownership program to boost engagement and performance.
- KKR's acquisition of a majority stake shows strong confidence in Agiloft's growth and market potential.
- FTV Capital's additional investment and JMI Equity's new investment provide financial backing for expansion and innovation.
- Agiloft has demonstrated impressive growth with a unique no-code platform, attracting a growing global customer base.
- A broad-based employee ownership program indicates a strategy to increase employee engagement and company strength.
- Agiloft's integration capabilities with other software systems promote operational efficiency and improved outcomes.
- The announcement lacks specific financial details, making it difficult to assess the immediate impact on KKR's finances.
- No information on potential dilution of current shareholders' equity has been provided.
- There are inherent risks associated with integrating new investors and executing the broad-based employee ownership program.
Insights
The acquisition of a majority stake in Agiloft by KKR is a significant move in the private equity and technology sectors. This type of investment typically signals confidence in the company's growth trajectory and market potential. The additional investment from FTV Capital and the new involvement of JMI Equity further underscores this confidence.
From a financial perspective, this kind of backing can provide Agiloft with the capital needed to scale operations, innovate product lines and acquire new customers. For retail investors, it's important to understand that such investments often result in increased company valuation due to improved financial stability and potential for accelerated growth. However, the high expectations set by these heavyweights can also put pressure on Agiloft to deliver consistent performance.
With KKR's acquisition, Agiloft is poised to enhance its technological capabilities. Agiloft’s no-code platform is already a significant differentiator in the Contract Lifecycle Management (CLM) market, which is evolving rapidly with increasing demand for automation in legal and procurement sectors. The infusion of capital can be expected to drive further innovations in product solutions, making the platform even more competitive.
This move can provide a technical edge as Agiloft invests in new features and integrations, thereby potentially expanding their market share. For investors, this could translate to a stronger competitive position and higher customer retention, which are key drivers for long-term revenue growth.
The CLM market, as highlighted, is still young but represents a multi-billion-dollar opportunity. The growth potential in this sector is substantial, especially as companies increasingly seek solutions for regulatory compliance and workflow efficiencies. Agiloft's focus on customer satisfaction, as emphasized in the announcement, aligns with industry trends where customer experience is critical for long-term success.
This investment can increase Agiloft’s market penetration and visibility. The endorsement from KKR and FTV Capital will likely boost market confidence in the company’s capabilities, aiding in the acquisition of new clients globally. However, investors should also be aware of competitive pressures within this evolving market, which could impact Agiloft’s ability to maintain its growth momentum if not managed well.
Existing investor FTV Capital to invest additional capital in the Company
Agiloft is a leading provider of data-first CLM software, enabling legal, procurement, sales and other departments to streamline and leverage their contracting efforts. Agiloft acts as a system of record and provides its customers a global view of all their contracts across all phases, including contract approval, storage, and pre- and post-signature processes and performance. The Company’s flexible platform allows Agiloft to handle significant complexity, serve a wide range of business needs, and integrate with other software systems, resulting in increased efficiencies and improved operational outcomes.
“I am enormously proud and humbled by what we have been able to accomplish at Agiloft. While the business has grown significantly, we have always focused on and maintained our number one differentiator: customer satisfaction and retention, which is predicated on our uniquely agile solution, reliable implementation success, and human-centric approach to contracting,” said Eric Laughlin, CEO of Agiloft. “This new investment from KKR and JMI Equity and continued support from FTV Capital serve as a testament to the caliber of our team’s ability to provide and deliver differentiated world-class products and services to our customers.”
“As businesses increasingly look for efficient ways to ensure regulatory compliance, realize cost efficiencies and manage complex workflows, Agiloft has differentiated itself by providing a simple, one-stop solution to meet its customers’ needs,” said Jimmy Miele, Director, Tech Growth at KKR. “We are deeply impressed by Eric’s leadership and the rest of the Agiloft team, and we look forward to working together to capture additional opportunities in the market.”
“Since FTV’s initial investment in 2020, Agiloft has driven impressive growth by delivering a truly unique no-code platform to a quickly growing customer base globally,” said Alex Mason, Partner at FTV Capital. “The CLM market, while still young, represents a multi-billion dollar opportunity, and we look forward to working with KKR as we continue to support Agiloft in fueling expansion and sustaining its notable leadership in workflow automation.”
As part of the transaction, KKR, JMI Equity and FTV Capital will support Agiloft in implementing a broad-based employee ownership program to allow all of its employees to have the opportunity to participate in the benefits of ownership of the Company. This strategy is based on the belief that employee engagement is a key driver in building stronger companies. Since 2011, KKR portfolio companies have awarded billions of dollars in equity to over 100,000 non-senior management employees across more than 40 portfolio companies.
KKR is making the investment through its Next Generation Technology III Fund. Agiloft adds to KKR’s global portfolio of technology and software investments, which includes OneStream, o9, OutSystems, ReliaQuest (also an FTV Capital portfolio company), RainFocus and Restaurant365.
Moelis & Company LLC served as exclusive financial advisor to Agiloft. Baker McKenzie served as legal advisor to Agiloft. Gibson, Dunn & Crutcher LLP served as legal advisor to KKR.
About Agiloft
As the most trusted global leader in data-first contract lifecycle management (CLM) software, Agiloft connects contractual commitments to real business outcomes using its flexible Data-first Agreement Platform (DAP). With contract data as the foundation, customers quickly and collaboratively reach agreement and leverage contract visibility to thrive with competitive advantage. Employing powerful, pragmatic artificial intelligence as a legal force multiplier, and robust integration capabilities as a data liberator, organizations around the world trust Agiloft’s certified implementers to deliver connected, intelligent, and autonomous solutions across the entire contract lifecycle. With a
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About FTV Capital
FTV Capital is a sector-focused growth equity investment firm that has raised
About JMI Equity
JMI Equity is a growth equity firm focused on investing in leading software companies. For over three decades, JMI has partnered with exceptional founders, entrepreneurs, and management teams at high-growth software companies to provide flexible capital, industry expertise, and operational support to build businesses of enduring value. To date, JMI has invested in over 180 software businesses in
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Media
For Agiloft:
Jeffrey Miesbauer
650-459-5637 ext 4003
news@agiloft.com
For KKR:
Emily Cummings or Liidia Liuksila
212 230-9722
media@kkr.com
Source: KKR
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