CLEARLAKE CAPITAL GROUP ANNOUNCES SALE OF NETMOTION WIRELESS TO THE CARLYLE GROUP
Seattle, WA & Santa Monica, CA – August 15, 2016 – Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”) announced today that NetMotion Wireless, Inc. (“NetMotion” or the “Company”), a provider of mobile security software solutions, has entered into a definitive agreement to be acquired by The Carlyle Group (NASDAQ: CG; “Carlyle”). The transaction is expected to close in the third quarter of 2016, subject to normal closing conditions and regulatory approvals. Financial terms were not disclosed.
Since Clearlake’s acquisition of the Company in 2012, NetMotion has built on its leadership position in the mobile security market. NetMotion mobile security solutions manage, optimize, accelerate, and secure all traffic to mobile devices across any network, application or operating system. Under its ownership, Clearlake supported NetMotion and the management team across multiple growth initiatives. NetMotion launched new products for the iOS and the Android platforms, continued to invest in R&D to innovate, markedly increased investments in sales and marketing, successfully consummated and integrated acquisitions, and embarked on geographic expansion into the European and Asia Pacific markets. These initiatives resulted in record revenue and EBITDA growth of more than 500 percent during its partnership with Clearlake.
“We are pleased to have sponsored NetMotion and to have worked closely with the talented management team and employees to transform the business and establish the Company as a leading player in an attractive and high-growth segment of the mobile security software market. We identified operational efficiencies, worked closely with the team to implement best practices in key functional areas, heavily invested in product and in sales and marketing, and expanded the Company’s reach into new geographies,” said Behdad Eghbali, a Managing Partner at Clearlake and Prashant Mehrotra, a Partner at Clearlake. “NetMotion grew substantially and has continued to deliver for its customers, partners, and shareholders. We are humbled to have contributed to the Company’s success, and look forward to seeing continued success and growth under Carlyle’s ownership.”
“The success here is a testament to the acumen, dedication and leadership of NetMotion’s executive team, led by Christopher Kenessey and Joe Savarese, and the rest of the management and employees,” added John Ferron, a Clearlake Operating Advisor. As the CEO of NetMotion through June 2016, John led the transformation of the business under Clearlake’s ownership.
“We are proud of our successful partnership with Clearlake, and appreciative of the resources and software industry insights the Clearlake team brought to our business as we looked to accelerate the Company’s growth trajectory. Our time with Clearlake has positioned the Company, our employees, and our customers for future success,” said Christopher Kenessey, CEO of NetMotion.
Evercore Partners advised NetMotion in the sale to Carlyle. Atlas Technology Group served as financial advisor to the NetMotion Board of Directors in the transaction.
ABOUT NETMOTION WIRELESS
NetMotion Wireless mobile security and performance management software accelerates business-critical applications, hybrid networks and mobile devices. Thousands of enterprises around the world depend on the company’s solutions to deliver network traffic optimization, adaptive policy control, mobile user experience management and secure access for their mobile workforces. NetMotion gives IT decision-makers robust intelligence and control over devices, applications and networks to increase operational efficiencies and end-user productivity. NetMotion has received numerous awards for its technology and customer support. The company consistently receives an impressive customer satisfaction Net Promoter Score (NPS) of 91, significantly exceeding NPS averages in the technology and telecom industries. The company is headquartered in Seattle, Washington. Visit www.netmotionwireless.com.
NetMotion and NetMotion Mobility are registered trademarks of NetMotion Wireless, Inc. All other trade names, trademarks and registered trademarks are the property of their respective owners.
ABOUT CLEARLAKE CAPITAL GROUP
Clearlake Capital Group, L.P. is a private investment firm with a sector-focused approach. The firm seeks to partner with world-class management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational and strategic expertise. The firm’s core target sectors include technology, communications and business services; industrials, energy and power; and consumer products and services. Clearlake currently has approximately $3.5 billion of assets under management. More information is available at www.clearlakedev.wpengine.com.
ABOUT THE CARLYLE GROUP
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 127 funds and 164 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents.
MEDIA CONTACT
For NetMotion Wireless North America
Jaci Hendricks-Scott, Voxus PR
Direct: 253-444-5955
[email protected]
UK and Europe
Holly Malthouse, LEWIS
Direct: +44 (0) 207 802 2626
[email protected]
FOR CLEARLAKE CAPITAL GROUP
Owen Blicksilver Public Relations, Inc.
Kristin Celauro
(732) 264-1131
[email protected]
Jennifer Hurson
(845) 507-0571
[email protected]
