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KKR to invest USD172m in Cherwell Software

Leading global investment firm KKR is to take a larger stake in Cherwell Software through its Next Generation Technology Fund, which focuses on investments in software, security, Internet, digital media, and information services.

This latest investment of USD172 million will be in addition to KKR’s initial USD50 million investment made in Cherwell in February 2017.
 
Cherwell offers software that has enabled thousands of organisations to modernise their business operations by automating services digitally. After establishing itself as a leader in the IT Service Management (ITSM) space, Cherwell is poised to expand into the service management market, which is estimated to top USD30 billion by 2020 (including ITSM, “Low code” and PPM, according to MarketsandMarkets). As organisations of all sizes seek to connect disparate digital services and data silos in order to gain more insight, efficiency and productivity, Cherwell’s platform unifies the tools that ensure their businesses are as efficient as possible. Companies, schools, hospitals, and government agencies all over the world depend on Cherwell’s solutions to manage their IT operations and, increasingly, achieve digital transformation across their organisations.
 
“Since founding this company in 2004, we have committed to serving customers with intuitive technology that helps not only drive business but transform organisations,” says Vance Brown, Cherwell Co-Founder and Chairman of the Board. “The demand for our platform has continued to expand globally and the leadership at KKR is aligned with the company’s vision for growth.”
 
“Cherwell is a leader in its industry known for its highly-adaptable, high-quality solutions, which enable customers to transform their service management capabilities. We are thrilled to further invest in the company, which we believe has enormous potential for growth,” says Vini Letteri, a Managing Director on KKR’s Private Equity and TMT Growth team.
 
Cherwell’s business is expanding rapidly across the globe. The company has experienced dramatic growth in new customers in the EMEA and APAC regions as well as in collaboration with leading industry partners through its Technical Alliance Partnership program. In addition, nearly 70 per cent of Cherwell’s enterprise customers have expanded their use of service management beyond IT, deploying the platform to satisfy a number of needs such as HR, Project Management, Facilities, and Security. Cherwell has a growing and engaged customer base including a wide range of active user groups worldwide, which increased in number by 218 per cent and in customer attendance by 250 per cent in 2017.
 
“Cherwell has enabled us to do much more than we initially anticipated in terms of driving centralised intelligence and optimised service for our business. We have seen an increase in service application across our organisation with more than 50 per cent of service tickets coming in through Cherwell now outside of IT. The Cherwell platform was not only able to be customised for our particular needs in healthcare, but it can grow with our needs, which is vital as we look to drive innovation and continuous improvement,” says William J Weyrick, Director, Information Systems Division, Dartmouth-Hitchcock.
 
“Cherwell Software’s evolution into a global technology company in a little more than 10 years is one of the state’s high-tech success stories,” says Colorado Governor John Hickenlooper. “The innovation and highly skilled jobs this company has produced demonstrates some of the best of what Colorado Springs and Colorado has to offer. I’m proud to see Cherwell continue to attract investment to Colorado and lay the groundwork for even more growth in the years ahead.”
 

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