Private equity firm Clearlake Capital has acquired software company FrontRange, which it will combine with portfolio company Lumension to create Heat Software, a new company.
FrontRange, headquartered in Milpitas, California, provides service-management software. Scottsdale, Arizona-based Lumension provided endpoint-management software.
Heat will be headquartered in Milpitas, California, and have operations in Scottsdale. The combined business will provide service-management and endpoint-management software to information technology, human resources, facilities, finance, customer services and other businesses. The business has cloud-based operations.
Los Angeles-based Clearlake manages about $1.4 billion in equity capital. In October, the firm acquired Sage Automotive Interiors, a provider of automotive textiles. In May, Clearlake picked up ConvergeOne, which provides communications services.
As software has transitioned to the cloud, private equity firms have been showing more interest in investing. On Feb. 11, private equity firm Vector Capital agreed to take Saba Software private in a $390 million deal. In January, TA Associates bought a majority stake in Access Technology Group, which develops business-management software. For more, see Plugging Into Software.