Insights
Discovery Data case study
Industry: Software
Year Invested: 2016
Year Exited: 2018
Outcome: Sold to Northlane Capital Partners
Status: Exited
Location: New York, NY
The acquisitions and integrations of Discovery Data, Meridian IQ, and FMG, created a leading provider of data on investment advisors and insurance agents
Investment Structure / Thesis
- Based on a thesis in sales intelligence, Sagemount built proprietary relationships with both management teams and ownership groups, and in 2016 combined Discovery and Meridian IQ while taking a majority equity stake to create the niche market leader
- Merger of the top two players in the space immediately created a clear market leader with recurring revenue, strong cash flow, and steady ACV growth
- Subsequent acquisition of FMG added new data sets, widening the moat and enhancing the product offering
- Drove growth by utilizing account-based marketing and B2B data consumption focused on helping sales teams be more efficient with customer prospects and leads
Value Creation by Sagemount
-
Architected initial combination of Discovery Data and Meridian IQ
-
Sourced and closed the acquisition of FMG, bolstering market position and ACV growth
-
Interviewed and brought in an operational CFO who improved financial reporting and controls
-
Built the end market’s first “Datalink” – a real-time API synchronization between the Salesforce CRM and the Company’s sales intelligence database
-
Increased enterprise value 2.9x in just over two years through a strong acceleration in product and the go to market infrastructure
2.9X
INCREASED ENTERPRISE VALUE
in just over two years
