N-able

Providing Flexible Capital to Address Diverse Shareholder and Company Funding Needs

Company Overview
N-able Technologies is a global leader in remote monitoring and management automation solutions for managed service providers (“MSPs”) and IT departments. N-able’s N-central® software and complementary toolsets are proven to reduce IT support costs, improve network performance and increase productivity through the proactive monitoring, management and optimization of IP-enabled devices and IT infrastructure. N-central features a hybrid licensing model that reduces the cost of remote management and accelerates the mass adoption of managed services. N-able was founded in 2000 and is headquartered in Ottawa, Canada.

Transaction Overview
Accel-KKR first met N-able in the summer of 2009, after which Accel-KKR fostered a two-plus year dialogue with the company prior to investing. Accel-KKR believed the company had a strong management team and its new monitoring product was well positioned to capitalize on ongoing outsourcing trends. Accel-KKR and N-able finalized the investment in September 2011, in large part, due to the flexible capital Accel-KKR was able to provide. Given the lifecycle of the company and requirements of existing shareholders, Accel-KKR made a minority investment with proceeds used for both shareholder liquidity and investment into the company for growth.

Value Creation
Accel-KKR and the management team believed there was an opportunity to invest in growth and effect strategic M&A through possible add-on acquisitions. Over the next two years, the team executed on:

  • Improving customer acquisition costs and, as a result, improving total customer life time value
  • Expanding the sales team 30%+ and doubling the number of deals closed per quarter
  • Bolstering account management function and increasing add-on module sales by over 100%
  • Expanding international sales efforts with a focus on Europe and Australia
  • Completing the company’s first add-on acquisition, WarrantyUpdate, a provider of automated warranty information — to build out N-able’s reporting function

The combination of both the organic and inorganic efforts led to meaningfully improved operating performance – the return of N-able to significant growth and profitability.

Results
As a result of the Accel-KKR investment and ability for the company to fund key organic growth initiatives, N-able grew bookings at a CAGR of over 80% during Accel-KKR’s investment period. The company also grew the number of devices on its software and the number of SMBs it managed by over 80% and 70%, respectively, during that same period. In May 2013, N-able was acquired by Solarwinds for $120 million.

This and other featured case studies represent a subset of Accel-KKR’s portfolio companies.  These case studies are selected as examples of software and technology enabled services companies, often founder owned, that desired a partner with a growth orientation (both organic and inorganic) and capital base to execute on targeted value creation opportunities.  The results attributable to these companies may not be indicative of results of all portfolio companies with which Accel-KKR has arrangements.  There can be no assurance that comparable results will be achieved in other and future investments.