December SMB Software News Recap

SMB Index

JAN 15, 2019 - Sara Defina

Each month we report on news and updates for the companies in the SurePath SMB Index — a basket of publicly traded software and technology companies that serve the SMB market.

Here is what made the news this past month:

Acquisitions and Divestitures

December was another quiet month for dealmaking among constituents of the SurePath SMB Index. However, one player made major headlines:

Vista Equity Partners to buy MINDBODY in a $1.9 billion deal — 3 years after going public, MINDBODY, the cloud-based business management software for the small and medium-sized businesses in the wellness services industry, has entered into an agreement to be acquired by private equity firm Vista Equity Partners for a total value of approximately $1.9 billion. The shareholders of MINDBODY will receive $36.50 in cash per share, representing a premium of approximately 68% to the December 21, 2018 closing price. The deal is expected to close in the first quarter of 2019.

New Product Launches and Partnerships

There were a few new product launches and partnerships announced by constituents of the SurePath SMB Index in December. Highlights include:

Intuit Launches Redesigned QuickBooks ProAdvisor Program — The redesigned QuickBooks ProAdvisor Program will be launched in the U.S., Canada and Australia. The latest development of the program incorporates, a new points structure and additional benefits which are designed to support accounting professionals’ success and growth.

Intuit TurboTax Launches a Free, Interactive Tax Reform Calculator to assist and educate taxpayers on how the new tax reform laws will impact them. The calculator allows taxpayers to easily understand whether they need to claim the standard deductions or itemized deductions under the new laws, as well as includes other free tax tools and resources.

HubSpot Announces a Collaboration with Amazon Web Services to Support the Startup Ecosystem — HubSpot, has entered into a three-year commitment with Amazon Web Services to assist its start-up ecosystem. HubSpot will use Amazon Web Services in order to expand its platform as well as provide additional benefits to members including preferred pricing on the HubSpot Growth Suite software, executive mentorship, educational content tailored to Startup’s, and more.

Other News:

HubSpot Announces the Launch of HubSpot Ventures — the $30 million fund will aim to support and expand the impact of start-ups that are focused not only on growing bigger but have a long-term view on success. The focus will be on early stage companies raising funding for a seed, Series A, or Series B round.

Activity in the SMB space outside of our SMB Index:

Non-SurePath Capital SMB Index companies also had some exciting deal activity in the month of December:

Autodesk announces its intention to buy construction software platform BuildingConnected for $275 million.

Pinterest is preparing itself for a 2019 IPO.

ShopKeep, a cloud-based, payments and point-of-sale platform raises $65 million to accelerate ongoing growth initiatives and expand into additional business segments.

Swiftpage, the provider of a CRM and digital marketing platform for small and mid-sized businesses announces its acquisition of Kuvana, Inc., a provider of email and marketing automation.

Sara Defina
Written By:
Sara Defina is an Analyst at SurePath Capital Partners responsible for supporting clients through the technical aspects of M&A and capital raise transactions. Sara leverages her prior experience as a manager in KPMG’s Valuations Deal Advisory group and assisting early-stage technology companies seeking financing through MaRS Innovation.

About SurePath Capital

Based in Toronto and San Francisco, SurePath Capital Partners is the only investment bank focused exclusively on the global SMB software market. We work with sellers in this market to ensure they are funded for growth and positioned for meaningful exits. In addition, we work with buyers in this market to help shape their strategy and execute acquisitions.

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