Contact: Scott Denne
Idera’s bid to roll up companies in the IT performance management space gets a boost as TA Associates acquires the company. Idera launched beyond the database management business with a pair of acquisitions last summer – CopperEgg and Precise Software – with plans to ink more, but has been quiet since.
Idera is one of several vendors primed to consolidate the performance management category, fueled by the expansion of cloud deployments and mobile software and, in part, by private equity (PE) money in the sector, such as Thoma Bravo’s $2.5bn purchase of Compuware and earlier pickup of Keynote Systems, as well as Insight Venture Partners’ investments in SmartBear and Kaseya.
With trailing revenue of about $40m and little growth, the transaction is likely on the small end of a TA acquisition (the PE firm’s median deal size is $150m, according to The 451 M&A KnowledgeBase ), suggesting that TA has set aside more capital for add-on purchases. The PE firm’s move delivers an exit to longtime investor Austin Ventures, which first backed Idera more than a decade ago, as well as Vector Capital, Silverton Partners and Greylock Israel, which became backers though the acquisitions of Precise Software and CopperEgg.
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