K1's strategic investment established Axcient as a BCDR leader, and the firm will have realized over $1.8B of liquidity in the past ten months

MANHATTAN BEACH, Calif. , Sept. 10, 2024 /PRNewswire/ -- K1 Investment Management, LLC ("K1"), one of the largest investors in small-cap enterprise software companies, today announced that its portfolio company Axcient, a provider of advanced business continuity and disaster recovery (BCDR) solutions for managed service providers (MSPs), has entered into a definitive agreement to be acquired by ConnectWise, with the transaction expected to close in the coming weeks.

K1 Investment Management Logo (PRNewsfoto/K1 Investment Management)

Following K1's initial investment, Axcient focused on customer-driven innovation and strategic growth, resulting in annual recurring revenue growing by 7.5x over its investment period. During the partnership, K1 facilitated the strategic add-on acquisitions of Anchor, Cloudfinder and Replibit, further enhancing the company's market presence and product offerings, and solidifying its position as a category leader in backup and disaster recovery software.

"K1's partnership with Axcient has helped to transform the company's product offerings and establish itself as a leader in the BCDR space," said Taylor Beaupain, Managing Partner at K1."Through our operational support and growth initiatives, Axcient has continued to evolve its solutions, positioning itself as a trusted name for MSPs globally."

The acquisition by ConnectWise seeks to further accelerate Axcient's mission to protect MSPs and their clients from growing cybersecurity risks, combining its BCDR expertise with ConnectWise's comprehensive suite of IT management, cybersecurity, and data protection solutions. Axcient's robust technology, including its x360 platform, has earned industry recognition for offering seamless, scalable protection to businesses of all sizes.

"Axcient's partnership with K1 has been instrumental in scaling the company's technology and expanding its reach," said Rod Mathews, CEO of Axcient. "As we join the ConnectWise family, we are excited to continue delivering leading solutions that help MSPs protect their customers from ransomware attacks and other disruptions."

With the sale of Axcient, K1 has now realized over $1.8 billion of liquidity in the past ten months across its portfolio. This exit follows a series of successful transactions, including the recent take-private of MariaDB, the strategic growth investment in Board Intelligence, and the sale of GoCanvas to Nemetschek Group (FRA:NEM).

About Axcient
Axcient is an award-winning provider of Business Continuity and Disaster Recovery (BCDR) solutions, offering advanced cloud-based data protection services that ensure businesses can recover quickly from disruptions. Axcient's commitment to product innovation and strong partner support have earned it a trusted reputation for MSPs.

About K1
K1 is one of the largest investors in small-cap enterprise software companies. Headquartered in Manhattan Beach, California, K1 partners with strong management teams of high-growth software businesses, utilizing operationally-focused growth strategies to rapidly scale portfolio companies. Dedicated to transforming industries and driving productivity, K1 has collaborated with over 240 enterprise software companies since inception.

K1's exclusive focus, driven by its single team, single office, and single fund strategy, has resulted in realizations for many of its portfolio companies. Examples include Apttus (sold to Thoma Bravo), Buildium (sold to RealPage, NASDAQ: RP), Certent (sold to insightsoftware), Checkmarx (sold to Insight Partners and Hellman & Friedman), Clarizen (sold to Planview), FMG Suite (sold to Aurora Capital Partners), GoCanvas (sold to Nemetschek Group, FRA: NEM), Granicus (sold to Vista Equity Partners and Harvest Partners), Inthinc (sold to Orbcomm, NASDAQ: ORBC), Litera (sold to Hg Capital), Rave Mobile Safety (sold to TCV; now owned by Motorola Solutions, NYSE: MSI), TeamDynamix (sold to Level Equity), Unified (now owned by iHeartMedia), WorkForce Software (now owned by Insight Partners and Elliott Investment Management) and Zapproved (sold to Exterro).

For more information, visit k1.com and follow K1 Investment Management on LinkedIn.

 

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SOURCE K1 Investment Management

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