Colorado Springs-based tech firm Cherwell Software announced this week that the company has received a $50-million investment that will be used to bolster its operations and service offerings.
The investment came via the “Next Generation Technology Fund” of New York-based private equity firm KKR (Kohlberg Kravis Roberts) & Co. LP, which specializes in leveraged buyouts and invests heavily in the tech industry.
Since 2012, a major investor in Cherwell (10125 Federal Dr #100) has been New York-based private equity and venture capital firm Insight Venture Partners.
According to a news release announcing the investment, the company will use the $50 million to “accelerate research and development and make strategic investments aimed at broadening and deepening its portfolio of IT and enterprise service management offerings.”
As a consequence of the investment, Vini Letteri of KKR will join the Cherwell board of directors, according to the release. Letteri’s title at KKR is Director of Private Equity & TMT (technology, media and telecommunications) Growth.
“With IT teams’ increasing importance within organizations, ensuring there is no interruption to IT services and that customer satisfaction is high are paramount to any business,” Letteri said in the announcement. “Since its founding, Cherwell has been entirely customer-centric in its focus and is led by a seasoned, passionate, and industry-leading management team. Its platform provides unparalleled value and the ultimate flexibility to its customers to operate in any industry and in any environment—on premises, cloud, or hybrid. We are really pleased to partner with them to help accelerate Cherwell’s future growth and leadership in this dynamic industry.”
According to Cherwell, 2016 was a record-breaking year for the company. Among other accomplishments, the firm saw its highest number of bookings and new customers last year. The company also acquired IT consulting firm Advanced Marketplace and formed strategic partnerships with Microsoft, Azure and Amazon Web Services.
“KKR’s investment in Cherwell is validation that our core principles and areas of focus will continue to drive phenomenal growth and fulfill our goal of being the best service management solution on the planet,” said Cherwell CEO Craig Harper.
Harper, who replaced founder Vance Brown as CEO last year, explained exactly what Cherwell does in the world of IT: “The Cherwell Service Management platform offers extensive customization coupled with low total cost of ownership. Our codeless platform enables IT teams to configure and extend the platform in virtually limitless ways under a single, all-inclusive concurrent licensing model. We also offer a broad range of deployment and licensing options that empower customers to do business in a manner that suits their needs both from a business and technology perspective.”
The International Data Corporation (a market research firm) named Cherwell as one of the fastest growing vendors in the 2015 edition of its “Worldwide Problem Management Software Market Shares” report.
“Cherwell is the fastest growing company in the very dynamic service management marketspace,” Harper said. “We have grown 341 percent over the past three years in our core market. We currently have around 450 employees around the world, about 280 of which are based here in Colorado. I anticipate that we could double the size of our employee base in the next year or two. With the support of KKR’s investment, we will be able to accelerate Cherwell’s R&D efforts and our increase our rate of innovation. We will also consider investments aimed at broadening and deepening our portfolio of IT and enterprise service management offerings through strategic acquisition. This positions us to continue advancing our global leadership position, and fulfill our goal of delivering the best service management tools on the planet.”