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TAMPA – The local software company ConnectWise announced Monday that it was being bought by a Silicon Valley private equity firm as part of an agreement that is expected to create 300 new jobs in the local market and bring back $ 270 million to about 1,000 employees – 70 of them will receive payments of $ 1 million or more.
"This will change the lives of hundreds of families in the Tampa Bay area," said ConnectWise co-founder Arnie Bellini. Tampa Bay Times. "Think of all that money invested in the Tampa Bay economy. How cool is that? "
The terms of the deal with Thoma Bravo, a buying and building company that has invested $ 30 billion in software and technology companies, have not been disclosed. The sale should be finalized on Thursday.
"We need a great success": Can ConnectWise Achieve National Success? Arnie Bellini hopes
ConnectWise is a private company, but has restricted stock to employees once a year. From now on, the employees, with the exception of those hired after the last issue, will share a total of $ 270 million for their shares. According to Bellini, seventy will receive at least a million dollars and almost "everyone will have something to gain". One will receive $ 40 million.
"This agreement is huge for the Tampa Bay area," said Stan Levy, ConnectWise Board Member. "If you look at Silicon Valley, many companies have been created by former employees of high-performing companies."
Bellini and his family own about 60% of ConnectWise, but he said he wanted society to be a meritocracy.
"If you work hard and are dedicated and passionate about our vision and mission, I want you to have a share in the business," he said.
"Wow," said Dennis Prescott Jr., 27, an analyst in Business Intelligence at ConnectWise, when he was informed of the total number of employees. (He had not been told yet what would be his share.) "That's pretty surprising."
Bellini, 60, launched ConnectWise with her brother David in 1982 in a room in their parents' home in Tampa. His father worked for IBM and the brothers saw a future in the computer.
Although the company began 37 years ago, it has experienced explosive growth over the last decade by acquiring, integrating or developing its own business management applications that customers access through the cloud. computing. Its turnover now stands at $ 240 million a year, with seven offices in the United States, India, the United Kingdom and Australia.
"Many of them are very young," Levy said of ConnectWise's workforce. "They are incredibly bright. They are self-initiated. They think and breathe technology. And they love Tampa Bay. … There was no question of leaving the company in Tampa Bay. This business is here to stay. "
A graduate of Tampa Catholic High School, the University of Florida, and the University of South Florida College of Business, Mr. Bellini is known for his commitment, motivation, and thirst for great challenges. Outside of his job, he swam in the Channel in his fifties and traveled 29 km around the island of Manhattan and 33 km between Los Angeles and Catalina.
"It gives you an idea of what was needed to develop ConnectWise," said Steve Raymund, former CEO of Tech Data, a ConnectWise board member until the sale is completed and the board administration be dissolved.
ConnectWise began to explore external investments that would accelerate growth and make strategic acquisitions five years ago. She first considered making an initial public offering for savings and then changed direction. She ended up talking to Cisco about a possible strategic investment, as well as eight different private equity firms.
Thoma Bravo was the "clear and obvious choice," said Bellini, because of his philosophy, his approach to management, and his dominance of so-called "software-as-a-service" or SaaS technology.
Together, Thoma Bravo and ConnectWise have defined a five-year plan that is expected to create approximately 300 additional jobs for ConnectWise's Tampa Bay operations. Upon completion of the transaction, Bellini will become a Corporate Advisor and Jason Magee, currently President and Chief Operating Officer of ConnectWise, will become the Chief Executive Officer.
Magee, 43, joined ConnectWise in 2011, after CA Technologies, and became director of operations in 2016. Since then, ConnectWise has seen cumulative growth of 21% per year. The same is true for earnings growth of more than 81% before interest, taxes, depreciation and amortization, a standard measure of a company's financial strength.
In the future, ConnectWise plans to focus on simplifying cybersecurity for its customers. It has already spent $ 8 million on the purchase of the Sienna group in Tampa and invested $ 7 million in Perch Security, also in Tampa.
In addition, a new stock plan has been established to continue to give ConnectWise employees, known internally as colleagues, the ownership of the company. It will be launched in 2020 assuming the company reaches its performance targets for 2019.
Finally, Bellini hopes this agreement will attract the attention of technology investors in the Tampa Bay area, which he says is ready for growth.
"We believe this transaction is the first of many," he said. "Tampa Bay can produce 20 additional ConnectWises. We must be busy and I will help you. "
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