Francisco Partners acquired a majority interest in Avangate, which provides ecommerce services related to software, cloud and software as a service. Using Avangate, companies can increase their sales online, manage subscription billing and grow reseller and affiliate channels.
Based in Amsterdam, Avangate has more than 3,000 customers in 100 countries, with offices in Redwood Shores, CA, Bucharest, RO, and a sales support office in APAC.
With the acquisition, Avangate plans to expand development of its ecommerce product.
“The explosion of customer touch points has shifted buyer behavior at both traditional B2C and B2B companies and is driving the need for organizations to rethink their commerce solutions,” Avangate CEO Carl Theobald said. “We’re calling this shift in the market ‘Business-to-individual’ or ‘B2i’, which requires new customer-centric commerce solutions that can support rapid experimentation of product promotions, purchase paths, payment methods and new business models. With Francisco Partners we have found an investment partner that shares our customer-centric vision. Their investment and support further accelerates Avangate’s vision to be a high growth public company, as well as opens a variety of additional market options.”
With ecommerce expansion set to explode in the US and Asia over the next few years, there is an opportunity for Avangate to not only add to its product portfolio, but to expand geographically as well. It is unclear if this acquisition will help it achieve a greater footprint.
“We are excited about Avangate’s leadership position at the convergence of digital goods commerce and subscription billing and look forward to working with the Avangate team to continue its rapid growth,” My Le Nguyen, principal at Francisco Partners said. “Speed is the new competitive differentiation and by giving companies a commerce platform to quickly introduce, test and optimize new business models across customer touch points, Avangate is leading the way in providing solutions for the next generation of commerce.