Latest Funding to Drive Next Phase of
Innovation and Transformation of Sales Performance
Management
TORONTO, July 16,
2024 /CNW/ -- Varicent, the industry leader in
sales performance management (SPM) software, today announced a
strategic investment led by Warburg Pincus, a leading global growth
investor, alongside existing investors Great Hill Partners and
Spectrum Equity, with participation from company management.
Building on this investment, Varicent will continue to rapidly
advance its proprietary Revenue Performance Engine framework,
accelerate delivery of AI-driven capabilities, and reinforce its
position in key markets globally. It is expected the transaction
will close in the third calendar quarter of 2024 subject to
customary closing conditions.
In today's competitive landscape, coordinating and aligning
territories, quotas, incentive programs, and other sales plans is
critical to achieving sustainable revenue gains and operational
efficiencies. Revenue leaders seeking more profitable growth are
constrained by processes and tools that are not designed for
dynamic planning. Varicent's cloud-based platform optimizes sales
performance through advanced operational and analytical
capabilities, addressing critical challenges for sales, finance,
and HR teams. As a recognized leader in The Forrester Wave™: Sales
Performance Management Platforms, Q1 2023, Varicent's integrated
solution streamlines processes from sales territory design to quota
allocation and incentive compensation, providing powerful insights
that align sales behaviors with strategic objectives.
With less than 50% of sales representatives having achieved
quota since 20171, and nearly 70% continuing to miss
their targets in 20242, there is an urgent need for
solutions that optimize sales plans and drive peak
performance. Varicent is actively addressing this market
demand, with a 2024 Boston Consulting Group study revealing that
Varicent customers reported revenue increases of 4-10%, along with
enhanced labor efficiency and fewer errors.
"This strategic investment marks a pivotal moment for Varicent,"
said Marc Altshuller, CEO of
Varicent. "With Warburg Pincus joining our existing investors, we
solidify our foundation for further growth, strengthening our
ability to further enhance our platform, customer experience, and
partner ecosystem. Our Revenue Performance Engine has received an
enthusiastic reception from customers and partners, highlighting
its significant impact on optimizing sales plans and driving
revenue. We believe Varicent is well-positioned to lead the
industry forward in empowering organizations to optimize sales
plans and incentive strategies that drive peak performance and
revenue."
"Varicent's position as a category leader, coupled with its
experienced management team and strong customer advocacy, presents
significant opportunities for continued innovation and market
expansion. We're excited to support Varicent's next phase of
growth, including potential strategic acquisitions and partnerships
that will further solidify its leadership in the SPM space,"
commented Vishnu Menon, Managing Director, Lauren Zletz, Managing Director, and
Kevin White, Principal, at Warburg
Pincus. "In today's complex business environment, sales performance
management solutions are increasingly critical for organizations
driving growth. Varicent meets this demand through its integrated
platform, helping companies maximize results at every stage of the
revenue journey. We look forward to partnering with Marc and his
team, alongside Great Hill and Spectrum Equity, to bring Varicent
into its next phase of growth."
Drew Loucks, Managing Director at
Great Hill Partners, noted, "Since investing in Varicent nearly
five years ago, the company has continuously demonstrated its
ability to be at the forefront of the SPM sector by supporting its
customers with innovative and efficient solutions to enhance the
entire revenue process. Setting a revenue goal is important to
businesses across various sizes, industries and geographies, but
implementing the appropriate strategy to actually reach that goal
is critical, and our infusion of new capital into Varicent supports
our conviction and confidence in the entire Varicent team and its
strategy that the company is poised for continued growth and
expansion. In addition to continuing to collaborate with Marc and
the Spectrum Equity team, we are thrilled to welcome our friends at
Warburg Pincus into the investor group as we all strive to build
lasting value for Varicent and its key stakeholders."
"Varicent's success is a result of management's relentless focus
on helping customers meet their sales objectives," said
Chris Mitchell, Managing Director at
Spectrum Equity. "We are thrilled to continue to support the
company in further cementing its leadership position in this next
phase of growth."
William Blair and Guggenheim
Securities, LLC are serving as exclusive financial advisors to
Varicent, Great Hill Partners and Spectrum Equity; Moelis &
Company LLC is serving as advisor to Varicent's Board of Directors.
Paul Hastings LLP and Blakes are serving as legal counsel to
Varicent and Great Hill Partners. Harris
Williams is serving as financial advisor, Kirkland &
Ellis is serving as M&A counsel and Paul, Weiss, Rifkind,
Wharton & Garrison LLP is serving as financing counsel to
Warburg Pincus. Choate, Hall & Stewart LLP is serving as legal
counsel to Spectrum Equity.
About Varicent
Varicent is an award-winning SaaS company that helps businesses
fuel growth. Its suite of solutions supports a company's entire
revenue journey to help drive predictable growth, from
results-driven planning of territories and quotas to incentive
compensation. With Varicent, companies worldwide can set smarter
goals and territories to maximize revenue potential, create
incentive strategies that motivate the right behaviors to achieve
revenue goals, and leverage AI-driven insights to make better
decisions and outdo previous performance. To learn more about
Varicent, visit www.Varicent.com.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm
has more than $84 billion in assets
under management. The firm's active portfolio of more than 225
companies is highly diversified by stage, sector, and geography.
Warburg Pincus is an experienced partner to management teams
seeking to build durable companies with sustainable value. Warburg
Pincus has invested over $33 billion
in technology companies since inception and is one of the most
active growth investors in enterprise technology and cloud-based
platforms, with notable investments including Avalara, Clearwater
Analytics, CrowdStrike, Infoblox, Internet Brands, Modernizing
Medicine, Net Documents, and WebPT. Since its founding in 1966,
Warburg Pincus has invested more than $117
billion in over 1,000 companies globally across its private
equity, real estate, and capital solutions strategies. The firm is
headquartered in New York with
offices in Amsterdam, Beijing, Berlin, Hong
Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San
Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit
www.warburgpincus.com. Follow us on LinkedIn.
About Great Hill Partners
Founded in 1998, Great Hill Partners is a private equity firm
targeting investments of $100 million
to $500 million in high-growth
companies across the software, digital commerce, financial
technology, healthcare, and digital infrastructure sectors. With
offices in Boston and London, Great Hill has raised over
$12 billion of commitments and
invested in nearly 100 companies, establishing an extensive track
record of building long-term partnerships with entrepreneurs and
providing flexible resources to help middle-market companies scale.
Great Hill has been recognized for its industry leadership, being
ranked in the top of five of HEC Paris-Dow Jones' Mid-Market Buyout
and Performance Ranking lists from 2021-2023. For more information,
including a list of all Great Hill investments, visit
www.greathillpartners.com.
About Spectrum Equity
Spectrum Equity is a leading growth equity firm with offices in
Boston, San Francisco, and London. Founded in 1994, the firm has provided
capital and strategic support to over 175 innovative software and
data services companies spanning multiple industries, from finance
and healthcare to cybersecurity and education. For 30 years,
Spectrum's deep bench of experience, domain-specific expertise, and
track record of productive partnerships have set it apart as an
industry-focused growth equity firm. Representative investments
include Ancestry, Definitive Healthcare, GoodRx, Grubhub, Lucid
Software, Origami Risk, SurveyMonkey and Verafin. For more
information, visit www.spectrumequity.com
Contacts
For Varicent:
Bill
Hobbib, Chief Marketing Officer
bhobbib@varicent.com
For Warburg Pincus:
Sarah
McGrath Bloom
Sarah.bloom@warburgpincus.com
For Great Hill Partners:
FGS Global
GreatHill@fgsglobal.com
For Spectrum Equity:
Margaret
Jones
mjones@spectrumequity.com
1 Alexander Group – 2023 Sales Compensation
Trends Survey Executive Summary
2 ebsta and Pavilion – 2024 B2B Sales
Benchmarks
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SOURCE Varicent