General Atlantic Invests $66 Million in Market Leader ServiceSource
Global Private Equity Firm to Support ServiceSource in Advancing Its
Market Leadership Position & Expanding Its Global Presence
SAN FRANCISCO, CA -- (MARKET WIRE) -- January 30, 2007 --
ServiceSource, a global outsourcing provider focused exclusively on
increasing support and maintenance revenue for hardware, software and
healthcare companies, announced today that it has received $66
million in capital from General Atlantic LLC (GA) for a minority
stake in the company. ServiceSource assists companies such as Sun
Microsystems, AT&T, Hitachi Data Systems, and CA to dramatically
improve the financial performance of their worldwide services
business. The company is privately held, profitable and boasts a
blue-chip client list that includes more than 40 technology leaders.
ServiceSource will leverage this relationship to expand its worldwide
presence beyond its current U.S. and EMEA operations, to
significantly increase its market share in the hardware, software and
healthcare segments and to continue to advance its technology
solution.
The company also announced today that Marc McMorris, Managing
Director of General Atlantic, and James Madden, Founder and CEO of
leading HR outsourcer Exult until its sale to Hewitt Associates in
2004, will join the company's board of directors.
"We are partnering with General Atlantic because it is one of the
world's leading strategic investors, and it brings us a unique
combination of outsourcing experience and global expertise," said
Mike Smerklo, President & CEO of ServiceSource. "ServiceSource has
experienced tremendous growth, and we have aggressive plans for
scaling our worldwide business. General Atlantic has a long legacy of
backing successful high-growth companies, and it has extensive
experience in the global outsourcing industry. The addition of Marc
and Jim to our board gives me even greater confidence that we will
achieve our goals."
"We have more than a decade of experience investing in leading
outsourcing companies," said Mr. McMorris. "What makes ServiceSource
unique is that it created and is shaping the development of the
outsourced service sales market. We were attracted to the company's
proven track record of profitability and success in acquiring new
clients. We believe ServiceSource will continue to accelerate its
growth by increasing its global footprint, entering new markets and
expanding its service offerings to clients. This company has a
fantastic opportunity ahead of it."
General Atlantic, a pioneer in the outsourcing industry, has a
long-term investment horizon and an active value-added approach to
investing in both public and private companies. GA has deep
technology expertise and has been active in the outsourcing sector
since the mid-1990s, with investments in leading companies including
Genpact, Xchanging and Exult. At ServiceSource, General Atlantic
complements existing investor Benchmark Capital, which also brings a
strong reputation in technology. This combination -- outsourcing
expertise and technology knowledge -- reflects the vision of what
ServiceSource ultimately delivers to its clients.
About ServiceSource
ServiceSource is dedicated solely to maximizing support and
maintenance revenue for technology companies. Within the technology
industry, support and services revenue total over $135 billion
worldwide, and companies typically realize only 84% of their maximum
opportunity. By combining proprietary business analytics and
diagnostic tools, streamlined sales processes and reporting
technologies to create a complete outsource solution, ServiceSource
maximizes this maintenance opportunity on behalf of its clients. As
of December 2006, over 40 clients have benefited from improved
financial performance, a higher level of predictability in their
annuity stream and increased visibility over reported results. The
company is based in San Francisco and has additional Service Centers
in Denver, Houston and Dublin, Ireland. ServiceSource is profitable,
privately held and backed by institutional investors General
Atlantic, Benchmark Capital and Housatonic Partners. For more
information on ServiceSource, visit www.servicesource.com or call
415.901.6030.
About General Atlantic
General Atlantic LLC is a leading global private equity firm
providing capital for growth companies driven by information
technology or intellectual property. The firm was founded in 1980 and
has approximately $12 billion of capital under management. General
Atlantic has invested in over 150 companies, with current holdings in
50 portfolio companies of which about one-half are based outside the
United States. The firm is distinguished within the investment
community by its global strategy and worldwide presence, its
commitment to provide sustained value-added assistance for its
portfolio companies and its long-term approach. General Atlantic has
over 70 global investment professionals among its 150 employees
worldwide with offices in Greenwich, New York, Palo Alto, London,
Düsseldorf, Hong Kong and Mumbai. For further information and a
listing of GA's public and private portfolio companies see
www.generalatlantic.com.
Katy Keim
415.608.4251
kkeim@servicesource.com
General Atlantic Contact
Pat Hedley
203.629.8658
phedley@generalatlantic.com
