An affiliate of Warburg Pincus has entered into a definitive agreement to buy a stake in NetDocuments Software Inc. from Clearlake Capital Group LP. Cove Hill Partners LP, who invested in NetDocuments in 2019, will retain its interest in NetDocuments.
NetDocuments is software company that offers cloud-based content services and productivity software for law firms, corporate legal teams, and compliance departments. Clearlake invested in NetDocuments in 2017.
“Our original investment thesis was to partner with NetDocuments’ management team and implement our O.P.S. framework to aggressively grow the platform through focused product and go-to-market initiatives,” said Behdad Eghbali, managing partner and co-founder, Clearlake. “We are proud of this outcome, as the transaction represents the strong recognition of the Company’s success and our vision to scale the platform and generate significant value.”
“The NetDocuments’ team and I have had a powerful partnership with Clearlake, as we have built the Company into a leading SaaS platform for the legal industry,” said Josh Baxter, CEO, NetDocuments. “Clearlake and their software investment expertise have been instrumental in the tremendous growth of our Company, and we are proud of what we accomplished together. This new growth investment highlights NetDocuments’ success and provides a strong base to help drive our continued growth. We look forward to working with Warburg Pincus and continuing our partnership with Cove Hill as we execute our strategy and deliver the highest quality technology solutions to our customers worldwide.”
“Clearlake’s software investing approach includes partnering with and scaling vertical application SaaS leaders and the NetDocuments success story is a great example of that strategy at work,” added Prashant Mehrotra, partner, and Ben Kruger, vice president, Clearlake. “The Company’s leading product vision and technology combined with Clearlake’s software investment best practices and resources enabled accelerated growth and strategic acquisitions. We thank the Cove Hill team for a successful collaboration, and we wish the NetDocuments team every success for the future.”
William Blair & Co. LLC acted as the exclusive financial advisor to NetDocuments. Sidley Austin LLP acted as counsel to NetDocuments and Clearlake.