NetDocuments, the leading secure cloud-based content services platform for law firms and corporate legal and compliance departments, today announced the closing of a significant new equity investment from Cove Hill Partners, L.P. Cove Hill joins Clearlake Capital Group, L.P. as a strategic investment partner to support the company’s rapid growth and innovation and becomes a minority shareholder in the Company.
Terms of the transaction are not being disclosed.
For the last two decades, NetDocuments has delivered innovation through its world-class content services platform, which enables customers to manage, collaborate, share and govern documents, e-mails and other information securely in the cloud. NetDocuments is used by over 2,500 professional services firms and corporate legal departments in more than 140 countries.
“Each day, more than two organizations are making the switch to the NetDocuments platform from our competitors,” said Josh Baxter, NetDocuments CEO. “This market movement, coupled with Cove Hill’s investment, is a testament to the strength of our platform and its unlimited possibilities.”
Since Clearlake took ownership of NetDocuments in 2017, ARR has grown more than 65%. Over that time, NetDocuments has rapidly executed to expand its product portfolio through organic R&D investments and strategic acquisitions and expand its reach through investments in sales and marketing.
“When we initially invested in NetDocuments, we partnered with management to implement the Clearlake O.P.S.® framework with initiatives focused on augmenting the Company’s senior leadership team with world-class SaaS executive talent and investing heavily in the Company’s sales resources and go-to-market channels,” said Behdad Eghbali, Managing Partner and Co-Founder. “This transaction marks the positive recognition of the team’s achievements executing upon this vision and strong future runway as the legal and compliance industries continue to transition to true SaaS and cloud-based solutions,” continued Prashant Mehrotra, Partner of Clearlake.
“Cove Hill is excited to partner with the strong management team at NetDocuments and join Clearlake as investors in the company. As the premier secure cloud-based content services platform, NetDocuments represents a unique investment opportunity to drive growth over the long-term with a market leading business,” said Justin Roberts, Co-Founder and Partner of Cove Hill.
The NetDocuments management team will continue to lead the company, leveraging Cove Hill’s and Clearlake’s partnership to broaden its offerings to address the needs of its customers. The management team remains investors and owners of the company.
“As organizations face increased security and technology demands, only pure SaaS companies will have the agility to quickly and effectively address these needs,” said Alvin Tedjamulia, NetDocuments CTO. “With its highly secure, cloud-based platform, NetDocuments is uniquely positioned to serve its customers over the long-term.”
Cove Hill will become a minority shareholder upon completion of the transaction. William Blair acted as financial advisors to NetDocuments.
Founded in 1999, NetDocuments’ cloud-based service allows firms of all sizes to reduce costs and increase security, mobility, compliance, and disaster recovery for documents and email from anywhere and on any device. With offices and datacenters in the US, Australia, and the UK, and with over 2,000+ customers and hundreds of thousands of users, NetDocuments is able to effectively service its global community spread across 140 countries. With anytime, anywhere access, firms are able to increase productivity and improve the client experience through a comprehensive cloud-based service.
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