A high-profile, global player in Computer-Aided Manufacturing (CAM) software, Vero Software a proven track record of reliably delivering critical software solutions to small- and medium-sized manufacturing organizations.
Vero Software develops and distributes software for aiding customers’ design and manufacturing processes. Its products are geared toward the tooling, production-engineering, sheet-metal, metal-fabrication, stone and woodworking industries. At the time of Battery’s investment, Vero was a publicly traded company on the AIM exchange in London and dramatically undervalued by the market.
- After running an extensive research project studying the CAM ecosystem, Battery worked with our in-house, executive-in-residence, Richard Smith, to identify interesting players in the CAM market.
- After Battery’s acquisition of Vero Software, Richard Smith assumed the role of CEO at the company, refocusing the business on profitability improvements and acquisitive growth.
- Battery then worked with the company to acquire Planit Holdings in 2011, Sescoi SA in 2012 and Surfware in 2013.
Within four years of Battery’s acquisition, Vero became the largest independent vendor in the CAM market through a combination of solid organic growth and strategic acquisitions.
At the time of Battery’s initial acquisition of Vero, the company’s last-twelve-months revenue was roughly $20 million; there was no EBITDA and the company was not growing organically. By 2014, Vero had dramatically boosted its growth: Revenue increased 6x to around $125 million, EBITDA increased from zero to roughly $40 million, and the organic revenue CAGR increased to 10%.
In 2014, Hexagon AB (STO: HEXA B) acquired Vero Software.
The presented case study investment was made in particular economic and market conditions. There can be no assurance that Battery Venture would elect, or be able, to exploit similar opportunities in a similar manner under similar or different economic and market conditions. More generally, there can be no assurances that the Battery vehicles will have comparable investment opportunities in the future. No assumptions should be made that any investments identified above were profitable. It should not be assumed that recommendations made in the future will be profitable or comparable to the portfolio company described in this case study. For a full list of all Battery Ventures investments, please click here.
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