IDERA provides infrastructure software tools for database monitoring and design, application development, DevOps and software testing.
From the very beginning of our strategic partnership, TA has been fully aligned with and supportive of our goals for growing the business. The valuable financial and operational guidance that Hythem El-Nazer, Ashu Agrawal and Mike Libert have provided has been instrumental to our success.
TA has helped IDERA:
- Execute, finance, and integrate nine complementary acquisitions, including five that TA sourced
- Recruit a CFO and three new independent directors
- Transition to a subscription revenue model with recurring revenue exceeding 80% of total revenues today, up from 60% at the time of investment
- Expand into three growth adjacencies: application development tools, developer operations (“DevOps”) tools and software testing tools
- Create new business opportunities via introduction to multiple prospective customers
- Redesign its brand architecture to integrate acquisitions better and have a cohesive go-to-market strategy
- Increase revenues and profitability substantially through organic and inorganic growth
IDERA provides a suite of software tools to technical users, comprising of database, development, DevOps and software testing tools. These include the Idera line of SQL management tools, integrated development environments under the Embarcadero brand, UI components through Sencha, and test management and automation through TestRail and Ranorex. Their tools help database and system administrators maintain the performance and functionality of their systems, software developers produce better products more efficiently, and quality assurance professionals improve collaboration and automation. IDERA serves more than 20,000 enterprise and SMB customers and millions of IT professionals worldwide.
The Investment Opportunity
TA’s industry-focused investment origination efforts identified IDERA as a high-quality company for our software and technology-enabled portfolio. We also viewed the investment as a strategic opportunity to partner with Randy Jacops, a dedicated and seasoned leader with a proven record of generating value in companies through both organic and inorganic growth initiatives. TA completed an investment in IDERA in September 2014.
Adding Value to Scale Growth
Over the course of TA’s partnership with IDERA, we have worked closely with the company’s management team to identify ways to scale the business. In particular, TA recognized IDERA’s ability to integrate and accelerate the growth of acquisitions through a high-velocity sales model. TA has sourced five accretive acquisitions for IDERA. One example is IDERA’s acquisition of Embarcadero Technologies, a provider of application and database development software solutions, which played a pivotal role in enhancing IDERA’s product offerings, market share and overall reach.
Since partnering with TA, IDERA has more than doubled its customer base and increased revenues and EBITDA multiple times over. Today, IDERA continues to expand via new and improved product lines, strategic acquisitions and key additions to its leadership team, with an ongoing goal to help companies monitor, develop and operate their technology in a more effective and efficient manner.
All statistical and financial metrics are as of September 30, 2018.
Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.