News and Events
General Atlantic Invests $66 Million in Market Leader ServiceSource
Global Private Equity Firm to Support ServiceSource in Advancing Its Market Leadership Position & Expanding Its Global Presence
January 30th 2007, San Francisco, CA: ServiceSource, a global outsourcing provider focused exclusively on increasing support and maintenance revenue for hardware, software and healthcare companies, announced today that it has received $66 million in capital from General Atlantic LLC (GA) for a minority stake in the company. ServiceSource assists companies such as Sun Microsystems, AT&T, Hitachi Data Systems, and CA to dramatically improve the financial performance of their worldwide services business. The company is privately held, profitable and boasts a blue-chip client list that includes more than 40 technology leaders.
ServiceSource will leverage this relationship to expand its worldwide presence beyond its current U.S. and EMEA operations, to significantly increase its market share in the hardware, software and healthcare segments and to continue to advance its technology solution.
The company also announced today that Marc McMorris, Managing Director of General Atlantic, and James Madden, Founder and CEO of leading HR outsourcer Exult until its sale to Hewitt Associates in 2004, will join the company’s board of directors.
We are partnering with General Atlantic because it is one of the world's leading strategic investors, and it brings us a unique combination of outsourcing experience and global expertise, said Mike Smerklo, President & CEO of ServiceSource. ServiceSource has experienced tremendous growth, and we have aggressive plans for scaling our worldwide business. General Atlantic has a long legacy of backing successful high-growth companies, and it has extensive experience in the global outsourcing industry. The addition of Marc and Jim to our board gives me even greater confidence that we will achieve our goals.
We have more than a decade of experience investing in leading outsourcing companies, said Mr. McMorris. What makes ServiceSource unique is that it created and is shaping the development of the outsourced service sales market. We were attracted to the company's proven track record of profitability and success in acquiring new clients. We believe ServiceSource will continue to accelerate its growth by increasing its global footprint, entering new markets and expanding its service offerings to clients. This company has a fantastic opportunity ahead of it.
General Atlantic, a pioneer in the outsourcing industry, has a long-term investment horizon and an active value-added approach to investing in both public and private companies. GA has deep technology expertise and has been active in the outsourcing sector since the mid-1990s, with investments in leading companies including Genpact, Xchanging and Exult. At ServiceSource, General Atlantic complements existing investor Benchmark Capital, which also brings a strong reputation in technology. This combination of outsourcing expertise and technology knowledge reflects the vision of what ServiceSource ultimately delivers to its clients.
ServiceSource clients experience predictable success worldwide, often exceeding client’s expectations by driving incremental revenue within one quarter. Profitable since inception in 1999, ServiceSource was founded with one mission: to maximize support and maintenance revenue for technology companies. Internationally, ServiceSource counts the technology industry’s leading companies as clients, serving over 40 hardware, software and telecom equipment providers. ServiceSource’s global efforts are currently growing at an unparalleled rate, and the company boasts an international client list including BEA Systems, Blue Coat Systems, Borland Software Corporation and Novell. It currently manages seven regions throughout Europe for Sun Microsystems.
About ServiceSource
ServiceSource is the service revenue performance company. We partner with technology, healthcare, and life sciences companies to maximize maintenance, support, and subscription revenue while optimizing customer loyalty. We increase contract renewal rates for clients on average by 10–25 percentage points — and in some cases by up to 40 points. These dramatic results are achieved via a purpose-built service revenue solution, including a suite of cloud applications and managed services built on a proprietary technology platform, which combines the industry's most robust data management engine and a unique service revenue master, leveraging our deep knowledgebase of benchmarks and best practices. Our solution delivers proven results through a 100% pay-for-performance business model that enables a success–driven, shared–risk partnership. Headquartered in San Francisco, ServiceSource has $5 billion in service revenue under management.
For more information on ServiceSource, visit www.servicesource.com or call: 415.901.6030.