Insight Venture Partners, a private equity firm focused on technology companies, has made an investment in OverDrive, a distributor of eBooks, audiobooks and digital content services to retailers, libraries and schools.
The investment, subject to regulatory approval, will provide additional resources and capital to help fuel the company’s growth.
OverDrive has long-term partnerships with publishers including Random House, HarperCollins, Penguin, Hachette, McGraw-Hill and John Wiley.
OverDrive operates a secure digital content repository and fulfillment platform for eBooks, audiobooks, music and video for a network of more than 11,000 retailers, libraries, schools and other digital channels.
"We are particularly excited about OverDrive’s strong growth, market leadership, and commitment to customers," says Larry Handen, managing director at Insight Venture Partners. "Our investment coincides with the 20th consecutive quarter of continuous profitability. This is a tribute to the company’s management team."
"Insight values OverDrive’s partnerships with leading librarians, educators, publishers, and authors, and how we help them benefit from new business models and technologies for their eBook and digital content offerings," says Steve Potash, OverDrive founder and chief executive. "The combination of Insight’s focus on technology, software, and Internet markets, along with their vast financial and human capital resources, makes them an extraordinary partner to help advance OverDrive’s mission of maximizing the value we provide to our publisher and channel partners."
Sagent Advisors served as financial adviser and Miller Goler Faeges served as legal adviser to OverDrive. O’Melveny & Myers served as legal adviser to Insight Venture Partners.
