A New York based private equity group, Bedford Funding, has acquired PeopleClick, a Raleigh software firm, for $100 million. Not bad.
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While this is a private equity buyer, it is also a strategic deal. Bedford also owns Authoria Inc., a competitor of PeopleClick in the human resources software space. Authoria makes talent management software, whereas PeopleClick makes talent acquisition software.
No indication of what EBITDA multiple was involved, but PeopleClick had raised just over $30 million in venture capital, the most recent round being in 2001. Without accounting for stock options, founder shares, and differences between VC rounds, that’s an aggregate 3.3x return in 9 years. Certainly not the worst VC deal ever, but not a huge home run either by historical VC standards.
We hope to see some of the proceeds recycled into new, local entrepreneurial ventures.