Cinven agrees to buy Boston software company Salsify

Cinven has agreed to acquire Salsify, a Boston-based provider of product experience management software, PE Hub reported. The companies did not disclose financial terms, leaving the transaction value, financing mix and other deal economics unavailable from the announcement.

Salsify sells software used in the product experience management category and has built a customer base of more than 2,000, according to the report. Its operations extend across North America, Europe and Australia, giving the company a presence in several major consumer and enterprise software markets.

The transaction places Salsify under the ownership of Cinven funds, according to comments from Cinven executives cited in the announcement. Private equity acquisitions of software companies typically focus on recurring revenue, customer retention and the scope to expand a platform across markets, although no specific operating plan for Salsify was disclosed.

Cinven cites market and platform attributes

Daniel Garin, a partner at Cinven, and John Cuyulis, a senior principal at the firm, said in a statement that the investment reflected characteristics Cinven looks for in software, including a sizeable addressable market, a differentiated platform and strong customer loyalty. They also pointed to Salsify’s cloud-native product and its work with well-known consumer brands.

The executives described Salsify as a notable company in its industry, citing its platform and customer relationships. Their statement did not provide revenue, profitability, growth rates or retention metrics.

Piyush Chaudhari serves as chief executive officer of Salsify, according to PE Hub. The company was founded in 2012.

Adviser named

Moelis & Company LLC acted as financial adviser to Salsify on the transaction, PE Hub reported. No other advisers were named in the announcement.

The absence of disclosed pricing means investors and competitors cannot compare the acquisition multiple with other recent software transactions from the information made public. The announcement also did not state an expected closing date or identify regulatory approvals associated with the deal.

For Cinven, the agreement adds a software asset with international operations and a customer base spanning more than 2,000 organizations. For Salsify, the deal brings backing from a private equity sponsor that, according to its executives, views the company’s market position and cloud-based platform as central features of the investment case.

This story draws on original reporting from PE Hub.