KKR to Invest $172 Million in Cherwell Software
Landmark Investment for Colorado Company in State’s Growing Tech Arena
April 04, 2018 - Colorado Springs, CO.
Cherwell Software, LLC, (“Cherwell”) a global leader in enterprise service management, announced today that leading global investment firm KKR will take a larger stake in the company through its Next Generation Technology Fund, which focuses on investments in software, security, Internet, digital media, and information services. This latest investment of $172 million will be in addition to KKR’s initial $50 million investment made in Cherwell in February 2017.
Cherwell offers software that has enabled thousands of organizations to modernize their business operations by automating services digitally. After establishing itself as a leader in the IT Service Management (ITSM) space, Cherwell is poised to expand into the service management market, which is estimated to top $30 billion by 2020 (including ITSM, “Low code” and PPM, according to MarketsandMarkets). As organizations of all sizes seek to connect disparate digital services and data silos in order to gain more insight, efficiency and productivity, Cherwell’s platform unifies the tools that ensure their businesses are as efficient as possible. Companies, schools, hospitals, and government agencies all over the world depend on Cherwell’s solutions to manage their IT operations and, increasingly, achieve digital transformation across their organizations.
“Since founding this company in 2004, we have committed to serving customers with intuitive technology that helps not only drive business but transform organizations,” said Vance Brown, Cherwell Co-Founder and Chairman of the Board. “The demand for our platform has continued to expand globally and the leadership at KKR is aligned with the company’s vision for growth.”
“Cherwell is a leader in its industry known for its highly-adaptable, high-quality solutions, which enable customers to transform their service management capabilities. We are thrilled to further invest in the company, which we believe has enormous potential for growth,” said Vini Letteri, a Managing Director on KKR’s Private Equity and TMT Growth team.
Cherwell’s business is expanding rapidly across the globe. The company has experienced dramatic growth in new customers in the EMEA and APAC regions as well as in collaboration with leading industry partners through its Technical Alliance Partnership program. In addition, nearly 70% of Cherwell’s enterprise customers have expanded their use of service management beyond IT, deploying the platform to satisfy a number of needs such as HR, Project Management, Facilities, and Security. Cherwell has a growing and engaged customer base including a wide range of active user groups worldwide, which increased in number by 218% and in customer attendance by 250% in 2017.
“Cherwell has enabled us to do much more than we initially anticipated in terms of driving centralized intelligence and optimized service for our business. We have seen an increase in service application across our organization with more than 50% of service tickets coming in through Cherwell now outside of IT. The Cherwell platform was not only able to be customized for our particular needs in healthcare, but it can grow with our needs, which is vital as we look to drive innovation and continuous improvement,” said William J. Weyrick, Director, Information Systems Division, Dartmouth-Hitchcock.
“Cherwell Software’s evolution into a global technology company in a little more than 10 years is one of the state's high-tech success stories," Colorado Governor John Hickenlooper said. "The innovation and highly skilled jobs this company has produced demonstrates some of the best of what Colorado Springs and Colorado has to offer. I’m proud to see Cherwell continue to attract investment to Colorado and lay the groundwork for even more growth in the years ahead.”
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.
Ann Boyd, 719-494-3572
Kristi Huller or Cara Kleiman Major, +1-212-750-8300
About Cherwell Software
Cherwell (@Cherwell) empowers organizations to transform their business through the rapid adoption and easy management of digital services. Cherwell’s adaptable platform has enabled thousands of organizations to modernize their business operations with customizable service management, automation, and reporting across the enterprise. For more information, visit: https://www.cherwell.com.