Magnitude’s Investment from 3i
Supports International Acceleration
Magnitude Primed for Worldwide Data Revolution
March 19, 2019 / in Magnitude, News / by Karen McPhillips
Frequently Asked Questions
What’s the news?
Magnitude Software, Inc., the leader in unified application data management solutions, today announced significant investment from 3i Group plc. 3i is a leading international private equity and infrastructure investment management firm. The firm is investing behind Chris Ney, Founder, Chairman & CEO of Magnitude, who will maintain a significant stake in the business.
Why did Magnitude Software establish a financial and business partnership with 3i Group plc (3i)?
Magnitude, through solid organic growth and strategic acquisitions, more than tripled revenue, tripled profits and tripled global footprint in 3+ years. Primed for our next significant growth phase, we sought a strong financial sponsor with a global network, world-class company portfolio, and systematic approach to international expansion. Following an extensive search by Magnitude’s executive team, 3i was selected given its international capabilities and proven track record.
The partnership with 3i will enable Magnitude to further its record of success via organic growth and additional strategic acquisitions. It will accelerate our ability to execute on strategic expansion plans fueled by: market opportunity; our growing base of over 1,400 customers including 50% of the Fortune 100; the expertise of the Magnitude team across North America, Europe and India; and a portfolio of award-winning software solutions that empower enterprises to unify fragmented data and deliver actionable insights for critical business decisions.
What does this mean for Magnitude customers?
Magnitude’s highest priority is customer success. The relationship will enable us to continue to execute on our vision to significantly leverage our global acquisition strategy, technology innovation and scalable operational platform to profitably deliver even greater value to our growing blue-chip customer base. Our focus on global growth across the ERP ecosystem, where SAP and Oracle represent major market share, will also continue. With the investment, Magnitude furthers its ability to provide customers with better and new ways to harness the fragmented digital landscape for business benefit – and for partners to grow their share in the ecosystem.
Magnitude will continue to scale the business for:
Greater choice in solutions: Magnitude will continue to invest in organic growth, enhancing our existing solutions and expanding our portfolio by bringing new innovations to market. We will also grow inorganically, sourcing solutions and companies that complement our vision to enable customers to drive the vast operational efficiencies promised by modern enterprise applications.
Continued customer and partner success: Magnitude is committed to its customers and partners, applying our expert team, innovative solutions and technology-enabled support to ensure the best possible outcomes. We remain focused on helping customers and partners accelerate time-to-value, reduce costs and risks, and increase productivity – extending the value of infrastructure investments.
Accelerated growth: 3i brings to the table a global network, history of backing world-class companies, and systematic approach to international growth. This, combined with financial investment, will enable Magnitude to accelerate the pace of product innovation, expand our dominant position in the market, and scale customer success. This investment also enables our best-in-class network of partners more opportunities to grow their businesses alongside ours.
What does this mean for 3i?
For 3i, Magnitude provides a highly attractive market and business growth opportunity backed by a strong executive team, led by Chris Ney, Founder, Chairman & CEO of Magnitude. Magnitude executives have a track record of building great teams, delivering broad customer success and rapid growth. In addition, 3i finds the data opportunity compelling given it will only increase with the expanding amount of data companies generate and need to analyze.
The partnership with Magnitude allows 3i to further diversify its international portfolio with a technology platform play. In addition, Chris remains a significant shareholder and personal investor moving forward.
What about Audax, Magnitude’s PE firm since 2014?
Audax Group has been a tremendous partner, instrumental in our growth since 2014. Magnitude acquired six companies since we joined forces with Audax. The combination of our powerful team and Audax backing propelled us to this day where we are primed to harness the opportunity of the worldwide data revolution and accelerate our global growth.
How will this impact Magnitude leadership and team?
Chris, along with other senior executives, remain stakeholders in the business. Chris and the executive team remain committed not just to Magnitude’s customers and partners, but also to the employees who have made the company great.
Will there be any changes to the current service level or existing customer/ partner contacts?
No. All existing support and service arrangements continue without interruption. Customers and partners will work with their existing contacts.
Who should I contact if I have further questions on the news?
We will continue to be proactive in communicating to customers and partners any changes that directly affect them. Please refer to our announcement and the information below if you have questions regarding the news:
Every Angle, Innowera, Z Option customers & partners –
Agility Multichannel, Noetix, Magnitude MDM & DIW, Magnitude SourceConnect and RapidDecision customers & partners –
Simba connectivity customers & partners –
For additional information regarding the investment announcement, please refer to our press release.
If you would like to stay informed of the latest Magnitude Software news and developments, please visit www.magnitude.com.
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Meredith Wilshire, Scratch Marketing + Media