Clearlake Capital to Sell NetMotion Wireless to The Carlyle Group (CG)
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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.
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Create E-mail Alert Related CategoriesCorporate News, Mergers and Acquisitions
Related EntitiesThe Carlyle Group, Definitive Agreement
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