3i buys into Magnitude Software at $340m enterprise value

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Private equity investor 3i Group has revealed it will invest about in app data management business Magnitude Software to give the business a $340m enterprise value.

3i will invest about $179m in the Texas-headquartered company, which offers software products that aim to enable business users to access, extract and analyse data efficiently.

Magnitude has more than 1,400 customers across sectors including manufacturing, retail and financial services companies, and its customer base includes 50 per cent of the Fortune 100.

The company said it “turned to 3i and its international capabilities to further its global expansion and accelerate its strategy”.

3i North America co-head Andrew Olinick said, “Magnitude provides a highly attractive market and business growth opportunity backed by a strong executive team, led by Chris Ney.

“Management has a track record of building great teams, delivering broad customer success and rapid growth. The data opportunity, and challenge, is only getting larger with the increasing amount of data that companies generate and need to analyse.”

Last November 3i revealed its private equity investments had secured a gross return of £667m for the firm in its most recent six-monthly results, amid it pulling back from new investment to focus on bolt-ons and its existing portfolio.

The firm sealed an 11 per cent return for the six months to 30th September, which it attributed to a strongly performing portfolio, particularly regarding growth at its bigger portfolio companies.

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