SANTA MONICA, CA (February 12th, 2015) – Clearlake Capital Group today announced that it has reached a definitive agreement to acquire FrontRange Solutions, Inc. (“FrontRange”). Clearlake also announced that, upon closing, FrontRange and Clearlake portfolio company Lumension will merge to form HEAT Software, a global provider of hybrid service management and unified endpoint management solutions for organizations of all sizes. Terms were not disclosed.
HEAT Software will be led by CEO Jonathan Temple, FrontRange’s President and CEO, and it will also feature a management team that combines Lumension and FrontRange executives. The combined company, which will have more than 350 employees serving its combined 8,700 customers globally, will be headquartered Milpitas, CA, and will maintain significant operations in Scottsdale, Arizona. HEAT is the name of FrontRange’s industry-leading software suite; the new name was approved by both Lumension and FrontRange.
As a trusted vendor managing millions of service interactions and endpoints every day for organizations around the world, HEAT Software will have the scale and ability to serve enterprises across all geographies and verticals. The combination of the two strong companies offers customers the ability to deliver world-class service while maximizing operational efficiencies with reduced cost and complexity. Additionally, the platform offers enhanced capabilities in the management of endpoint operations, security and compliance.
“We are excited to sponsor a new and exciting business through the formation of HEAT Software. In bringing together FrontRange and Lumension, we are combining two organizations with outstanding people, products and high-quality customer bases,” said Behdad Eghbali and Prashant Mehrotra of Clearlake Capital Group. “HEAT Software will have a unique opportunity to provide enterprises with greater efficiency and effectiveness for their IT departments, as well as enhanced security across the entire organization. The combined company will have the scale, breadth of capabilities and resources to extend its initial leadership position and to offer robust solutions to grow with the needs of its clients.”
“Our customers are improving service quality every day by deploying HEAT, the industry’s leading hybrid service management platform with fully integrated client management capabilities. The existing HEAT platform is unique in that from a single code base, the solution can be deployed either on-premises, in the cloud, or a combination of both,” said Temple. “Thanks to the strong financial backing and operational expertise from Clearlake, we will now be able to add Lumension’s best-in-class endpoint management and protection solutions that greatly complement FrontRange’s existing HEAT platform. HEAT Software is now in the envious position of providing a product portfolio that is the most flexible, advanced, and complete, offering in the market.”
Eghbali and Mehrotra will join the new company’s Board of Directors, which also includes Temple. Clearlake Operating Advisor John Ferron will serve as Chairman of the HEAT Software Board of Directors.
Stifel acted as financial advisor to FrontRange. Wells Fargo Capital Finance, PNC Bank, Capital One and Consortium Finance provided financing to HEAT Software.
HEAT Software is a leading provider of hybrid service management and unified endpoint management software solutions for organizations of all sizes. With its suite of applications, HEAT Software is the only company in the world that provides, from a single platform, Service Management and Unified Endpoint Management software on-premise and in the cloud. HEAT manages millions of service interactions and millions of endpoints every day for more than 8,700 leading organizations across IT, HR, Facilities, Finance, Customer Service, Healthcare and other enterprise functions. Its customers deliver world-class service while maximizing operational efficiencies and maintaining security with reduced cost and complexity. HEAT Software is headquartered in Milpitas, CA and is wholly owned by Clearlake Capital Group. For more information, visit www.HEATSoftware.com.
Clearlake Capital Group, L.P. is a private investment firm focused on special situations and private equity investments such as corporate divestitures, recapitalizations, buyouts, reorganizations, and other equity investments. Clearlake seeks to partner with world-class management teams by providing patient, longterm capital and operational expertise to invest in dynamic businesses. Clearlake currently manages approximately $1.4 billion of assets under management, and Clearlake’s founding principals have led over 70 investments totaling more than $3 billion of capital in sectors including business services, communication, consumer products/retail, defense/public safety, energy/power, healthcare, industrials, media, and technology. For more information, please visit www.clearlakecapital.com.
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