Clearlake Capital Group Announces Sale of NetMotion to The Carlyle Group
Seattle, WA and Santa Monica, CA – August 15, 2016 – Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”) announced today that NetMotion Software, Inc. (“NetMotion” or the “Company”), a provider of mobile security software solutions, has entered into a definitive agreement to be acquired by The Carlyle Group (NASDAQ: CG; “Carlyle”). The transaction is expected to close in the third quarter of 2016, subject to normal closing conditions and regulatory approvals. Financial terms were not disclosed.
Since Clearlake’s acquisition of the Company in 2012, NetMotion has built on its leadership position in the mobile security market.
NetMotion mobile security solutions manage, optimize, accelerate and secure all traffic to mobile devices across any network, application or operating system. Under its ownership, Clearlake supported NetMotion and the management team across multiple growth initiatives. NetMotion launched new products for the iOS and the Android platforms, continued to invest in R&D to innovate, markedly increased investments in sales and marketing, successfully consummated and integrated acquisitions, and embarked on geographic expansion into the European and Asia Pacific markets. These initiatives resulted in record revenue and EBITDA growth of more than 500 percent during its partnership with Clearlake.
“We are pleased to have sponsored NetMotion and to have worked closely with the talented management team and employees to transform the business and establish the Company as a leading player in an attractive and high-growth segment of the mobile security software market. We identified operational efficiencies, worked closely with the team to implement best practices in key functional areas, heavily invested in product and in sales and marketing, and expanded the Company’s reach into new geographies. NetMotion grew substantially and has continued to deliver for its customers, partners, and shareholders. We are humbled to have contributed to the Company’s success, and look forward to seeing continued success and growth under Carlyle’s ownership.”
Founding Partner, Clearlake Capital
Partner, Clearlake Capital
“The success here is a testament to the acumen, dedication and leadership of NetMotion’s executive team, led by Christopher Kenessey and Joe Savarese, and the rest of the management and employees.”
Operating Advisor, Clearlake Capital
As the CEO of NetMotion through June 2016, John led the transformation of the business under Clearlake’s ownership.
“We are proud of our successful partnership with Clearlake, and appreciative of the resources and software industry insights the Clearlake team brought to our business as we looked to accelerate the Company’s growth trajectory. Our time with Clearlake has positioned the Company, our employees, and our customers for future success.”
CEO, NetMotion Software
Evercore Partners advised NetMotion in the sale to Carlyle. Atlas Technology Group served as financial advisor to the NetMotion Board of Directors in the transaction.
About NetMotion Software
NetMotion provides security solutions for millions of devices deployed around the world, including 7 of the 10 largest airlines, 85% of US public safety agencies, and a variety of other major organizations ranging from utilities and healthcare to logistics and legal sectors. Customers choose the NetMotion platform for its powerful software-defined perimeter (SDP / ZTNA), experience monitoring and mobile-first enterprise VPN functionality. These solutions stand out for their ability to actively improve the employee experience, validated by a satisfaction rating of 97% and an NPS of 91. NetMotion is headquartered in Seattle, with offices in Victoria, Chicago, London, Tokyo, Sydney and Frankfurt.
NetMotion®, NetMotion Mobility®, NetMotion Diagnostics® and NetMotion Mobile IQ® are registered trademarks of NetMotion Software, Inc. All other trade names, trademarks and registered trademarks are the property of their respective owners.
About Clearlake Capital Group
Clearlake Capital Group, L.P. is a private investment firm with a sector-focused approach. The firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational and strategic expertise. The firm’s core target sectors include technology, communications and business services; industrials, energy and power; and consumer products and services. Clearlake currently has over $3.5 billion of assets under management. More information is available at www.clearlake.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 127 funds and 164 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents.