The top middle market private equity firm, HGGC just announced that it would be increasing its investment in FPX, a top global enterprise Configure Price Quote (CPQ) solutions. This middle market private equity firm acquired FPX in April 2016. The undisclosed investment is meant to help the global CPQ solutions firm to implement its global expansion strategy. In addition to that, this funding is also expected to help FPX accelerate its product development and enhance its strategic partnerships.
A good track record
The global fame that HGGC currently enjoys can easily be attributed to the success of its investments. Some of this firm’s most successful ventures are in the e-commerce market and related fields. These investments which include Selligent, MyWebGrocer and Hybris all sum up to an astonishing amount of more than $15 billion in aggregate transaction values.
A promising future
Making the investment announcement, the Co-Founder and Chief Executive Officer of HGGC, Richard Lawson stated that this was an excellent opportunity for FPX. An opportunity that will enable the enterprise CPQ solutions provider to dominate its market. He went ahead to mention that his firm’s investment will help place the FPX in a prime position in its market. Lawson also said that this enterprise CPQ solutions provider’s vision coupled with its talent and product capability means that the future is very promising for it.
Entering the patent management market
The top global middle market private equity firm, HGGC has also just completed its acquisition of patent risk management services provider, RPX. RPX seems to be an excellent investment choice for this middle market private equity firm as it had invested over $2.5 billion in the purchase of a whopping 23,000 patents. This patent management services provider founded in 2008 was acquired in a $555 million deal.
This top global middle market firm boasts of an unmatched cumulative capital commitment worth over $4.3 billion. The firm is based in Palo Alto, California and has made waves in the business sector which is unique “Advantage Investing” approach. This unique model is what has enabled the company to grow to the global leader it is now.
FPX is a independent SaaS vendor and a leader in global Configure Price Quote enterprise solutions. In April of 2016 they were acquired by middle-market frim HGGC, a private equity firm that focuses on e-commerce companies. After the successful acquisition, HGGC has infused FPX with a second investment of an undisclosed amount to help facilitate their already-underway global expansion efforts.
HGGC uses an “Advantaged Investing” model, where they find companies that are doing well, with a solid business model and good leadership already in place, and invest in their expansion efforts. With FPX already being a facilitator of Business to Business transactions, simplifying and streamlining their clients’ transactional infrastructure in the ever-changing digital marketplace, their acquisition and investment from HGGC makes perfect sense.
As an investing firm, HGGC has conducted over $15 billion in aggregate business transactions, and currently have over $4.3 billion in cumulative capital commitments. These numbers have helped establish their reputation as a global leader in e-commerce investing, a fast growing marketplace in the digital era. Their success stories include companies such as Selligent, MyWebGrocer and Hybris alongside FPX. They are based in Palo Alto, CA and have recently opened offices in Munich, Germany and London, England.
Rich Lawson, the Chief Executive Officer and a co-founder of HGGC, said that their confidence in FPX is very high and that his company was excited to help FPX continue its expansion under its current leadership. FPX Chief Executive Officer Dave Batt says he appreciates the vote of confidence and shares it with his investors.
Together, these companies are situated to continue to expand into the global digital marketplace as leaders of Business to Business transactions, CPQ solutions and e-commerce sales. FPX has formed partnerships with such companies as Microsoft and SAP, further strengthening their standings in the field. FPX has been engaged in a period of substantial growth already, so this undisclosed investment should help them capitalize on their existing momentum and push forward as a global leader. It is possible, according to Lawson, for FPX to dominate the CPQ market with the new investment and the current leadership.