In a startling development, Rodeo Software, an Amsterdam-based tech company, finds itself embroiled in controversy as US-based growth equity firm PSG Equity has initiated legal action, seizing €67 million from the company’s founder, Pieter Vos, reports fd.nl.
The move comes amid allegations of fraudulent activities within the organisation, which led to Vos’s dismissal from his role as CEO.
Rodeo is a cloud-native project management software provider that focuses on creative services companies. In July 2022, the Dutch company raised strategic growth investment from PSG.
What went wrong
According to fd.nl, on Tuesday morning, the Dutch company informed its shareholders about the financial irregularities and violations, which were led by its 57-year-old founder, Pieter Vos.
Forensic accountants are currently investigating the potential fraud at the Amsterdam-based software company.
Vos, who had been the CEO until March 28, was dismissed by the commissioners, who also launched the investigation into the company’s affairs.
According to sources close to the matter, Vos is nowhere to be found and is currently absconding. Silicon Canals has reached out to Rodeo Software for its comments on the ongoing investigation and the current situation. We will update this article as soon as we hear back from the company.
A spokesperson for Rodeo Software informed fd.nl that there are strong suspicions of intentional financial irregularities and violations. The spokesperson emphasised that Vos’s role in the alleged malpractices is a focal point of the ongoing forensic investigation.
Details regarding the extent of the financial discrepancies within Rodeo Software remain unclear, pending the outcome of the investigation. The company spokesperson refrained from disclosing specific operational details, such as turnover and customer metrics, citing their relevance to the ongoing forensic inquiry.
According to the spokesperson, the decision to dismiss Vos was prompted by his alleged failure to fulfil management obligations and contractual agreements, as outlined by the company’s supervisory board and shareholders.
Reportedly, Vos did not pay the salaries of fifty employees in March.
A Rodeo Software spokesperson tells Silicon Canals, “While we are assessing the situation, we can’t give more information until we have more insight into the situation.”
“In relation to the legal action, all Rodeo shareholders are minority shareholders. The assets were seized on behalf of all shareholders in the interests of all stakeholders,” adds the spokesperson.
PSG, a primary investor in Rodeo Software
Pieter Vos, who previously founded an accounting firm called Kop of Munt, started Rodeo Software in 2016, specialising in project management software like time registration.
fd.nl reports that in early 2022, Vos was seeking a major investor for the company’s growth. PSG Equity from Boston became that investor, acquiring a minority stake without disclosing details.
Another investment in Rodeo was made in 2020 by Dutch fund No Such Ventures and other investors, totalling €7.5M.
PSG Equity, representing all shareholders, has applied to seize a portion of Vos’s Amsterdam home, valued at €900,000 according to WOZ records, as part of efforts to recoup owed funds.
A spokesperson told fd.nl that the three supervisory directors, each representing a shareholder, dismissed Vos because he allegedly “failed to fulfill” various management agreements and other contractual obligations toward the supervisory board and shareholders.
Brief about PSG Equity
PSG Equity is a growth equity firm specialising in partnering with software and technology-enabled services companies to achieve growth and capitalise on strategic opportunities.
Backing 140 companies and facilitating 500 add-on acquisitions, PSG offers expertise in software and technology, emphasising collaboration with management teams.
Established in 2014, PSG operates from offices in Boston, Kansas City, London, Madrid, Paris, and Tel-Aviv.
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