Posting Its 6th Consecutive Year of Record Revenues, SevOne Receives $150 Million Investment From Bain Capital

January 15, 2013 07:30 ET
Posting Its 6th Consecutive Year of Record Revenues, SevOne Receives $150 Million Investment From Bain Capital

WILMINGTON, DE--(Marketwire - Jan 15, 2013) - SevOne, creator of market leading IT infrastructure management solutions, today announced that it closed 2012 with its 6th consecutive year of record financial results. The company's results were driven by existing customers adding more elements to manage their burgeoning networks as well as adding a record number of new customers. Based on this success, leading business software investor Bain Capital invested $150 million in the company.
"SevOne is the only solution that enables its customers to see all services in real-time within global distributed networks of any scale. The world's largest and most sophisticated customers choose SevOne for its fast time to value and unique peer to peer architecture that scales to address big data network growth," said Ben Nye, Managing Director at Bain Capital Ventures.
"We were attracted by the incredibly high satisfaction levels of SevOne's customers, the unique differentiation of their technology, and the talented management team. We look forward to partnering with the SevOne team to maintain their growth and accelerate their go to market operations," added Ben Holzman, Partner, Bain Capital Ventures.
SevOne provides a highly scalable, easy to deploy IT monitoring and reporting solution that provides high levels of visibility for enterprises, service providers or any entity dealing with challenges around network latency, new service rollout, business interruptions and increasing volume of data on their networks. SevOne's IT Performance Appliances scale cost-effectively without limitation or performance degradation so customers, for the first time, can monitor and manage any IT infrastructure, no matter how massive or complex.
"SevOne is thrilled to partner with Bain Capital as we take the company to the next level," said Mike Phelan, CEO, SevOne. "The investment caps a highly successful 2012 for SevOne. Our bookings doubled year over year, profitability increased significantly and our customer base doubled."
Pacific Crest Securities served as financial advisor to SevOne in this transaction.
About SevOne
SevOne, Inc. delivers the industry's fastest, most scalable, and comprehensive real-time IT infrastructure monitoring, troubleshooting and performance reporting solution. SevOne invented a proprietary, next-generation distributed technology, called the SevOne Cluster™, that combines the cutting edge principles behind peer-to-peer sharing and big data analytics to scale smoothly so that millions of IT elements, across all monitoring technologies, can be managed and provide a single view to the user. Hundreds of customers, including the top cable companies, wireless network and managed service providers, and top financial services institutions rely on SevOne to reduce operating expenses and improve quality of service. SevOne was recently named the 75th fastest growing company in North America on Deloitte's 2012 Technology Fast 500 rankings.
About Bain Capital
Bain Capital, LLC ( is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, high-yield assets and mezzanine capital with approximately $67 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 450 companies in a variety of industries around the world. Bain Capital Ventures ( manages over $2 billion of assets and has over 70 active portfolio companies. Bain has a long history of investing in branded technology and business service companies, such as Solarwinds (NYSE: SWI), AppAssure Software, Archer Technologies, Network Intelligence, dynaTrace Software, LinkedIn (NYSE: LNKD), SurveyMonkey, Taleo, and DoubleClick. The firm has offices in Boston, Palo Alto, New York, Chicago, London, Munich, Tokyo, Shanghai, Hong Kong and Mumbai.

Daily Links 1/15/2013: Curalate raises $3 million ; First Round invests in Invite Media founders' Health IT startup

 Subscribe in a reader
Subscribe to Philadelphia Tech News by Email

Pinterest Analytics Service Curalate Raises $3M
(All Things D)

SAP Falls After Earnings Trail Analysts’ Estimates (Bloomberg)

Despite Strong HANA Launch, SAP Sales Come Up Short (All Things D)

SAP Sweetens Hana Deal With Free Sybase Database (Information Week)

Flatiron Health Raises $8M From Google Ventures, First Round To Build An Intelligent Data Platform For Oncology (TechCrunch)
Flatiron Health is the new venture started by Invite Media co-founders Nat Turner and Zach Weinberg.

Announcing our latest investment, Flatiron Health (Redeye VC)

Silver Lake in advanced Dell buyout talks: sources (Reuters via Fox Business)

QlikTech and Attivio Partner to Deliver QlikView Direct Discovery for Big Data Analytics (Business Wire)

Why Amtrak's New Wi-Fi Upgrade Won't Fix Amtrak's Terrible Wi-Fi (The Atlantic Wire)

New website gives easiest look yet at crimes by neighborhood (

Phila.-area companies sharing $1.2M in Pa. innovation tax credits (Philadelphia Business

Backed By New Partnerships With Humana, Aetna & Verizon, Blueprint Health Debuts Its Third Class Of Healthcare Disruptors (TechCrunch)


Bain Capital invests $150 million in Wilmington-based SevOne

Tom Paine

 Subscribe in a reader
Subscribe to Philadelphia Tech News by Email

I thought Wilmington-based SevOne might be on to something big. It is.

Today the network performance monitoring company announced it was receiving a $150 million investment from Bain Capital, following a year in which SevOne said "bookings doubled year over year, profitability increased significantly and our customer base doubled."

SevOne is one of those companies that may have invented the proverbial "better box". In a world increasingly dependent on big data, distributed networks and cloud computing, the company's "SevOne Cluster" architecture helps customers monitor network performance at a detailed level on a dynamic, real time basis. SevOne's IT Performance Appliances scale to the size of any network, and its peer-to-peer architecture means that each node in the network can communicate with the other nodes. Comcast was an early and important SevOne customer.
SevOne CEO Mike Phelan

“We want to pursue the public markets,” CEO Mike Phelan told TechCrunch, presumably meaning the company is looking towards an IPO. He said that SevOne plans to use the funds to expand internationally, into the Goverment market and also to reach more middle market customers. Most of its early customers have been very large.

SevOne was founded in 2005 and currently has about 140 employees, but "will scale to several hundred by the end of the year," Phelan told TechCrunch.

SevOne has only raised a reported $3.5 million prior to this round. Osage Ventures has been the only institutional investor, leading a Series A in 2007 and a subsequent round in 2009. Other investors include a private group led by CEO Phelan, who prior to co-founding SevOne founded StorNet, which he built into a leading national storage consulting firm; Jonathan Brassington, the CEO and Founding Partner of Liquid Hub; and John Ryan, founder of SunGard Data Systems and a private investor.

I had SevOne ranked 4th among Philly Tech News' "Young Companies To Watch", but will probably move it up a few notches based on this. I would guess early investors received a good valuation since they got to this point with so little capital invested. Its a huge win for Delaware, assuming they stay there.