Reports: Gopuff raises another billion (since confirmed)

Tom Paine

News outlets (TechCrunch and Boston Globe reporting) say GoPuff has raised another $1 billion. The Globe says BlackStone and Fidelity are participating. Fidelity would be a return investor.

A site named  Prime Unicorn Index discovered the information in a Delaware filing, TechCrunch reported.

TechCrunch says this round (H). will be at a $15 billion post-money valuation.

Some observations:

This bring’s Gopuff’s total funding to close to $4 billion.

My guess is this will be the last round before an IPO. (Although you never quite know.)

Gopuff must be performing well enough to justify continued investor confidence. Its goal for this year is to triple revenue over last year to about $1 billion.

More acquisitions are likely. Bandit, announced this week but acquired late last year, was likely a small one. Talks with UK-based Dija are progressing, TechCrunch reports. There will likely be another big one.

Although its too early to tell, the company and its investors must be looking towards some kind of end-game. A closer relationship with Uber Eats is a possibility.

The introduction of prepared food delivered from dark kitchens is both an opportunity and a risk factor. Keeping enough drivers onboard and fairly happy will be a challenge.

The biggest risk is keeping all the pieces in the air together in a hyper-growth environment.

Ellucian gets new owners again; IFS spins off NJ-based WorkWave to PE owners

Tom Paine

Ellucian, whose predecessors were (formerly Malvern-based) SunGard Higher Education and Datatel, was turned over again. The new buyers are Blackstone and Vista Equity. The sellers are Texas-based TPG Capital and Los Angeles-based Leonard Green & Partners. Those two firms bought Ellucian from Hellman & Friedman in 2015. The latter bought SunGard HE in 2011 for $1.8 billion and merged it with Datatel, which it already controlled.

Ellucian still has people, maybe 300, in Malvern, according to LinkedIn. But the business is centered now in Northern Virginia.

No price was disclosed, but Blackstone and Vista may be a slight step up the Private Equity ladder from the prior owners.

The only company still operating under the SunGard moniker is Wayne-based SunGard Availability Services. Its still a leader in the DRaaS (Disaster Recovery as a Service) market, though it had to go through bankruptcy in 2019 due to legacy debt costs and the impact of virtualization on its previously hardware-intensive cost base.

SunGard Data Services was taken private in 2005 by a consortium. of private equity firms for $11.3 billion, then a record for a tech LBO

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Horsham-based Astea International earned frequent plaudits for its field service management (FSM) software, but it never seemed to grow much (you could track its revenue because it was publicly traded.)

In late 2019, Astea was acquired by IFS, a UK-based ERP vendor with a strong FSM strategic emphasis. it probably gained more global visibility in the process, though it difficult to ascertain its financial success within IFS. Astea has been rebranded under IFS as Alliance.

Meanwhile, IFS apparently sold or spun off another FSM subsidiary, Holmdel, Monmouth County NJ-based WorkWave, (as Enterprise Times’ Steve Brooks explains) which is strong in “light asset FSM” and in particular the pest control space. its now a portfolio company of PE firm EQT, one of IFS’s owners. WorkWave is rather substantial in size, having 275 employees according to LinkedIn, and has just made two significant acquisitions.

Another very recent IFS FSM acquisition was Axios Systems PLC, a UK-based FSM vendor primarily serving the IT market.

IFS can only hope to get the kind of scale in FSM that ServiceNow or Salesforce has. But as always, verticals are important.