NetDocuments, a secure cloud-based content services platform for law firms and corporate legal and compliance departments, has closed a significant new equity investment from Cove Hill Partners.
Cove Hill joins Clearlake Capital Group as a strategic investment partner to support the company’s rapid growth and innovation and becomes a minority shareholder in the Company. Terms of the transaction have not been disclosed.
For the last two decades, NetDocuments has delivered innovation through its content services platform, which enables customers to manage, collaborate, share, and govern documents, e-mails, and other information securely in the cloud. NetDocuments is used by over 2,500 professional services firms and corporate legal departments in more than 140 countries.
“Each day, more organisations are making the switch to the NetDocuments platform from our competitors,” says Josh Baxter, NetDocuments CEO. “This market movement, coupled with Cove Hill’s investment, is a testament to the strength of our platform and its unlimited possibilities.”
Since Clearlake took ownership of NetDocuments in 2017, ARR has grown more than 65 percent. Over that time, NetDocuments has rapidly expanded its product portfolio through organic R&D investments and strategic acquisitions and grown its reach through investments in sales and marketing.
“When we initially invested in NetDocuments, we partnered with management to implement the Clearlake O.P.S.® framework, including initiatives focused on augmenting the Company’s senior leadership team with world-class SaaS executive talent and investing heavily in the Company’s sales resources and go-to-market channels,” says Behdad Eghbali, Clearlake Managing Partner and Co-Founder.
“This transaction marks the positive recognition of the team’s achievements executing upon this vision and creating a strong future runway, as the legal and compliance industries continue to transition to true SaaS and cloud-based solutions,” says Prashant Mehrotra, a Partner at Clearlake.
“Cove Hill is excited to partner with the strong management team at NetDocuments and to join Clearlake as investors in the Company. As the premier secure cloud-based content services platform, NetDocuments represents a unique investment opportunity to drive growth over the long-term with a market leading business,” said Justin Roberts, Co-Founder and Partner at Cove Hill.
The NetDocuments management team will continue to lead the Company, leveraging Cove Hill’s and Clearlake’s partnership to broaden its offerings to address the needs of its customers. The management team remains investors and owners in the company.
“As organisations face increased security and technology demands, only pure SaaS companies will have the agility to quickly and effectively address these needs,” said Alvin Tedjamulia, NetDocuments CTO. “With its highly secure, cloud-based platform, NetDocuments is uniquely positioned to serve its customers over the long-term.”
William Blair acted as financial advisors to NetDocuments. Sidley acted for Clearlake Capital.
