Cartesis
Advent Ventures invested in the spin-out of Cartesis from PWC in February 2004, investing alongside Apax, Partech International and CDP.
Cartesis offers a suite of software applications providing solutions for Business Performance Management for corporate groups. In May 2007, Cartesis was acquired by Business Objects, one of the world’s leading Business Intelligence software companies for $300m in an all cash transaction, delivering a significant return for Advent Ventures’ investors.
Our investment thesis was to transform the company from a locally focussed, service-led business into an international, product-led business by refocusing the business model and driving international growth. To achieve these objectives, the management team was strengthened through the recruitment of several top-class, experienced senior executives from the software industry.
Accelerating growth
Over the following two years, the business was refocused on the core software business and significant investments were made in broadening the product offering, accelerating growth and extending the company’s geographical reach. In 2005, two companies, INEA and AIS, were acquired to further strengthen the business and boost growth. As a result, the company became a global leader in its market.
During the investment, license revenues grew dramatically fuelling overall growth and profitability improvement. Over the three years that this investment was held the company became one of the biggest venture-backed software companies in Europe with sales of over $120 million. Peter Baines, Advent Ventures’ Technology General Partner, led this transaction for Advent and was on the Board throughout the period of the investment. Didier Benchimol, Cartesis’ Chief Executive Officer, commented, “Cartesis’ investors were value-added partners that provided Cartesis with not only financial resources, but also deep software expertise, as well as significant growth situation and M&A skills”.
This investment is a good example of Advent Ventures’ well established strategy to invest in growth equity and later stage venture companies.