Brian Ruder and Ryan Lamper talk about Permira V's Technology investment: Metalogix.
How does Metalogix fit into the broad investment themes the Technology in all instances group has been working on?
Perfectly! Metalogix is a market-leading technology company with a defensible business model and good continuing secular growth opportunities. As with TeamViewer, a Permira V investment, Metalogix focuses on the infrastructure software space. We see this space as an increasingly attractive market to invest in, as it offers enormous consolidation opportunities as well as organic growth.
What does Metalogix do?
Metalogix is an infrastructure software provider. It develops tools for a series of applications that are primarily in the Microsoft ecosystem today. This includes; Microsoft SharePoint, Office 365, and increasingly, platforms like Google Drive, DropBox and Box. The core focus of the business is data management. In a world where data is growing exponentially, Metalogix has a series of tools which help to simplify and manage this growing data set.
What is the value creation plan?
The plan is very much to support the growth of the company globally. Metalogix's products are truly global but the business needs to continue to expand its customer base outside of the US. International expansion is a key focus of the management team and a core area of expertise for the Permira funds.
As SharePoint continues to grow and the Office 365 adoption rate increases there will be additional capacity in the market and Metalogix is well placed to benefit from this trend. We also believe there is significant opportunity for the company to enhance its sales model and its maintenance renewal rates. We will be able to draw on our experience from investments, such as Genesys and TeamViewer, which focused on go-to-market strategy optimisation.
Also, the company will be increasing its investment in Research & Development to build out its long-term vision of creating a platform-agnostic cloud product suite which will enable customers to avoid vendor lock-in and maximize user's ability to collaborate efficiently and securely.