NEW YORK & REDWOOD CITY, Calif. - KKR, a global investment firm, has acquired a majority stake in Agiloft, a leader in contract lifecycle management (CLM) software. With this transaction, existing investor FTV Capital will increase its investment, and JMI Equity will become a new investor in the company. This move aims to support Agiloft's growth and market share expansion, customer acquisition, and product innovation.
Agiloft is recognized for its data-first CLM software, which facilitates contract management for legal, procurement, and sales departments. Its platform allows for significant complexity, serving various business needs and integrating with other systems, enhancing operational efficiencies.
Eric Laughlin, CEO of Agiloft, expressed pride in the company's achievements, emphasizing customer satisfaction and retention as their primary differentiator. He views the investment from KKR and JMI Equity, along with continued support from FTV Capital, as an endorsement of the team's capability to deliver world-class products and services.
KKR's investment is part of its Next Generation Technology III Fund and adds to its global technology and software investment portfolio. The firm's strategy includes implementing an employee ownership program at Agiloft to engage all employees in the benefits of company ownership, a practice KKR believes builds stronger companies.
The CLM market is seen as a multi-billion dollar opportunity, and Agiloft has experienced significant growth since FTV Capital's initial investment in 2020. The company's no-code platform has attracted a growing global customer base.
Moelis (NYSE:MC) & Company LLC and Baker McKenzie served as financial and legal advisors to Agiloft, respectively, while Gibson, Dunn & Crutcher LLP advised KKR.
The information in this article is based on a press release statement.
InvestingPro Insights
KKR's strategic acquisition of a majority stake in Agiloft not only diversifies their portfolio but also aligns with their impressive track record in the Capital Markets industry. The investment firm's keen interest in technology and software investments is supported by their financial strength, as evidenced by KKR's substantial market capitalization of $92.13 billion.
The firm's financial health is further highlighted by a robust Price to Earnings (P/E) ratio of 22.46. This metric, which has remained stable at 22.78 when adjusted for the last twelve months as of Q1 2024, indicates investor confidence in KKR's earnings potential. Additionally, the company's significant revenue growth of 323.59% over the same period reflects its successful expansion strategies and operational efficiency.
Investors might also find KKR's commitment to shareholder returns compelling, with the company raising its dividend for 4 consecutive years and maintaining dividend payments for 15 consecutive years. This consistency is a testament to KKR's financial management and its ability to generate steady income streams for its investors. Moreover, with analysts predicting that the company will be profitable this year, and considering the high return over the last year, KKR's investment in Agiloft seems to be a strategic move to bolster its growth trajectory.
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