US-based Battery Ventures, a global technology-focused investment firm, announced on Tuesday that it has made another round of investment in London-based Forterro, an enterprise resource planning (ERP) software supplier for the industrial midmarket. Forterro claims to be a category leader in one of the largest and most steadily growing software markets.
The investment will allow Battery Ventures to hold a ‘significant’ minority stake in Forterro. Battery Ventures helped develop the company and later sold it to Partners Group for €1B earlier this year.
Dave Tabors, Private Equity Partner at Battery Ventures, says, “With the vast opportunities for continued growth and a deep belief in the vision shared by Forterro CEO Dean Forbes and its new lead investor, Partners Group, we are excited to double down on Forterro during its next chapter, deploying new capital into the business.”
Forterro’s Expansion and Growth Levers
Battery Ventures has been a core architect of the Forterro platform, especially when expanding the company’s presence beyond its initial Nordic region. This drove Forterro to become a pan-European powerhouse.
In addition to the expansion, Battery Ventures has been an important partner, bringing its extensive resources to bear on the deal that saw Forterro acquire OrderWise earlier this month, a move that is expected to significantly boost the company’s presence in northern Europe.
With the cooperation of Forterro’s management, Battery grew the firm into a global player in the ERP space, serving small and midsize European manufacturers and distributors during its decade of ownership.
Under Battery’s ownership, Forterro expanded internationally with 14 acquisitions in France, Germany, Poland, Sweden, Switzerland, and the United Kingdom, and saw an increase in annual recurring income of over 10 times.
What’s for Forterro with Partners Group?
Under Partners Group’s ownership, Battery Ventures says it will continue to remain committed to supporting Forterro’s growth strategy.
In accordance with the terms of the agreement, Tabors and Zak Ewen, principal at Battery Ventures, will join Forterro’s board of directors as observers. Battery Ventures will also be a valuable asset for the firm in corporate development, offering direction in determining a new acquisition strategy, identifying viable opportunities, and finalising transactions.
“With additional resources, there is almost unlimited potential for Forterro to explore in this next chapter,” adds Zak Ewen. “We are thrilled to continue our cooperation with the firm and assist them in their move from on-premise software to the cloud and their pursuit of new growth with complementary products that will enable the platform to better serve its more than 10,000 mid-market customers.”
About Battery Ventures
Founded in 1983, Battery Ventures works with brilliant entrepreneurs and executives to create market-defining firms in software and services, corporate infrastructure, consumer technology, healthcare IT, industrial technology, and life-science instruments.
The company has offices in Boston, San Francisco, Menlo Park, New York, London, and Tel Aviv, and invests internationally in businesses at various stages, from seed and early through growth and buyout.
About Forterro
Forterro was founded in 2012 and has since expanded to employ more than 1,200 people across 40 offices worldwide. The company provides specialised software solutions and assists more than 10,000 small and medium-sized enterprises. Forterro, with headquarters in London, is a market leader in one of the largest and steadily growing software markets in the world.
The company has established a presence in Europe’s leading production and distribution economies. It maintains regional service hubs and development centres worldwide. Forterro’s local and vertical industry software solutions were explicitly developed by the midmarket for the midmarket.
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