Private equity firm Vista Equity Partners has made an agreement to purchase web management and digital experience company Acquia in a deal valued at $1 billion.
This news comes after two strategic acquisitions this year by Acquia – Mautic and Cohesion – which are expected to help expand the company’s digital experience offerings.
Acquia has worked to expand its portfolio through product development and acquisitions, while Vista Equity Partners takes over the company’s operations.
The equity firm is known for acquiring undervalued technology companies and turning them around for a large profit.
Principal analyst at Digital Clarity Group, Scott Liewhehr, says that Vista buys companies and centralizes their operations to allow the companyies to focus on growth. “Vista, as a PE firm, tends to make money on companies by standardizing their operations to cut costs. It runs the portfolio companies more like divisions of a larger company than independent entities,” Liewehr said.
Once the deal is finalized, Acquia will continue to operate independently.
So far, Acquia has raised $173.5 million in funding.
Vista Equity Partners current portfolio consists of 60 companies with over 70,000 employees.