Clearlake Capital to Sell NetMotion Wireless to The Carlyle Group (CG)
- S&P, Dow rise on health stocks; Nasdaq weighed by Comcast
- Unusual 11 Mid-Day Movers 10/27: (PCMI) (OCN) (TTMI) Higher; (CYH) (RWLK) (AMFW) Lower
- Twitter (TWTR) Tops Q3 EPS by 4c; Announces Restructuring, Workforce Reduction
- Qualcomm (QCOM) to Acquire NXP Semi (NXPI) in $47B Deal
- Tesla (TSLA) Posts Q3 adj.-EPS of 71c
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”) announced today that NetMotion Wireless, 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). 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,” said Behdad Eghbali, a Managing Partner at Clearlake and Prashant Mehrotra, a Partner at Clearlake. “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.”
“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,” added John Ferron, a Clearlake Operating Advisor. 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,” said Christopher Kenessey, CEO of NetMotion.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rhône Enters Agreement o Acquire Zodiac from Carlyle Group (CG)
- Community Health Systems (CYH) Prelim. Q3 Results Fall Short of Consensus
- General Electric (GE) to Acquire Majority Stake in Concept Laser GmbH for $599M
Create E-mail Alert Related CategoriesCorporate News, Mergers and Acquisitions
Related EntitiesThe Carlyle Group, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!