Frisco-based Redwood Software, a global provider of automation fabric solutions, is being acquired by funds affiliated with Austin’s Vista Equity Partners, a global investment firm focused exclusively on enterprise software, data and technology-enabled businesses, and New York’s Warburg Pincus, a leading global growth investor. Redwood is being sold by San Francisco-based PE firm Turn/River Capital.
While terms of the deal were not disclosed, Reuters reported in August that Turn/River was exploring a sale of Redwood to other private equity firms in a deal that would value Redwood at $2.5 billion, including debt.
“We’re honored to join forces with Vista Equity Partners and Warburg Pincus,” Redwood Software CEO Kevin Greene said in a statement. “The wisdom, experience and operating expertise of these two leading global technology investors will accelerate our vision to unleash human potential through the transformative power of automation.”
Greene added that his company was excited to embark on “the next chapter of the Redwood Software story—where every IT and business process that can be automated, will be automated, and where automation fabrics will change everything about how and why people work.”
Helping customers create and manage business and IT business processes
Redwood said its automation fabric solutions help customers compose, orchestrate, and manage business and IT business processes “across any application, service, or server with confidence and control.”
In June, Redwood announced that it had added more than 1,000 new customers since mid-2023 while consistently delivering above “Rule of 60” financial performance. Redwood currently serves more than 7,500 customers globally, including 28% of the Fortune 500 and 40% of the Fortune 50.
“Redwood’s easy-to-use and highly integrated automation solutions help enterprises automate the critical workflows which power their core commercial and IT operations,” Steven White, managing director at Austin-based Vista Equity Partners, said in a statement. “We’re excited to partner with Redwood and Warburg Pincus to deliver even more customer value and efficiency as the demand for automation solutions capable of spanning multiple data, application and cloud environments continues to accelerate.”
‘One of the leading automation software companies in the world’
Managing Director Parag Gupta of New York-based Warburg Pincus sees strong potential in Redwood.
“As a leading next-generation enterprise automation platform, Redwood enables businesses to streamline and optimize their mission-critical business processes, an essential service as enterprise IT becomes increasingly complex,” Gupta said. “We believe that Redwood is well-positioned to capture the growth in the market given the company’s strong capabilities in business and IT automation and are excited to continue investing in Redwood’s innovative solutions both organically and through strategic M&A. We look forward to the partnership with Redwood and Vista in this next phase of growth.”
Turn/River Capital also sees a bright future for the company.
“It’s been our privilege to support Redwood on its remarkable journey as it continues to build one of the leading automation software companies in the world,” Turn/River Partner Matthew Amico said in a statement. “Throughout our partnership, Redwood has experienced significant growth, and with its strong set of automation products and exceptional team led by Kevin Greene, we believe strongly that the best is yet to come.”
San Francisco-based VC law firm Orrick is advising Turn/River and Redwood on the transaction. Orrick also advised Turn/River on its initial 2021 investment of around $347 million in Redwood and on Redwood’s subsequent acquisitions of Cerberus, Tidal Software, and other companies.
David Seeley contributed to this report.
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