Rethink Commerce Blog

Avangate’s Vision of Customer Centric Commerce Gets A Major Investment From Francisco Partners

Posted on October 7th, 2013 by

I’m thrilled to announce we have just closed a very strategic transaction with Francisco Partners. With this transaction, Francisco is acquiring Avangate and investing additional capital to further accelerate our already impressive growth. Francisco Partners is one of the most respected private equity firms in the world with over $7 Billion under management and we are extremely pleased to find an investment partner who shares our vision of Customer Centric Commerce. Even more importantly, the capital investment will help us further scale up our operations, deliver expanded platform capabilities, and better serve and support you, our customers.

Sell software online

When Avangate was founded 7 years ago, commerce for our software customers was already shifting rapidly with customers asking questions like — “How do we take advantage of this shift to online and digital distribution?” and “How do I start to sell into new global markets?” With each year, we have also seen the definition of what is considered software continue to evolve. We’re now seeing an explosion in SaaS and Cloud Services prompting new questions like — “How can I quickly optimize new business models, like subscriptions and usage-based billing,” and “How do I transition and monetize SaaS and Mobile,” to increasingly, “How can I maximize and monetize each customer touch point?”

The proliferation of customer choice, available information, and ubiquitous touch points has also changed buyer behavior at both traditional B2C and B2B companies driving buyers to not only look for information, but also to seek how they can interact and transact with you on their terms. These changes are forcing companies to rethink their commerce solutions.

Today, we have over 3,000 customers across more than 100 countries who have chosen us because they required a more customer centric and agile commerce solution that unites online eCommerce, reseller & affiliate management, subscription billing, and global payments in a single, complete platform.

Our new partnership with Francisco Partners is a significant milestone in Avangate’s journey and I would like to use this opportunity to thank you, our customers and partners, for your loyal support over the past 7 years. We could not have reached this milestone without you and we look forward to serving you for many years to come as you grow your worldwide sales – across channels, business models, and markets.

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Carl Theobald

President & CEO

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Comments (4)

  • :: Two Things: An Exit and a Short Interview » :: says: October 7th, 2013 at 9:53 pm

    […] More information on it here. […]

  • News Analysis: Avangate Acquired By Francisco Partners For Matrix Commerce Capabilities : Enterprise Irregulars says: October 17th, 2013 at 8:09 am

    […] October 7th, 2013, private equity firm, Francisco Partners acquired Avangate, a leader in digital commerce and subscription billing.  Avangate serves over 3,000 customers […]

  • Augusto says: November 17th, 2013 at 9:45 pm

    As a user forced to use Avangate for a purchase I cannot but be bewildered by your growth. I really don’t care about all the value you add by integrating reseller & affiliate management, subscription billing, and global payments into a single, complete platform. I just care about your system being able to handle a $28 payment using my VISA card..
    I have tried to pay $28 to Turbosmtp who has recently switched to Avangate from Google Wallet and just cant. Our production system uses Turbosmtp to send our confirmation emails, and Avangate has not been able to accept a $28 charge to our credit card and it has been pending for 48 hours. A separate payment using Paypal through the Avangate system has been pending for 12 hours.
    We will discontinue use of Turbostmp since they, without warning, switched to a far less capable payment platform and affected a production system.

  • Irina Mihaila says: November 19th, 2013 at 12:34 pm

    Dear Augusto,

    Our records show two valid orders placed by you on the service provider’s website, both of which have been pending validation by providing additional information (order ref. no. 22103780) or through additional actions taken from your end (order ref. no. 21969184). In both cases you have been sent correspondence containing instructions on how to perform the respective validation process. It appears the decision to validate the second purchase was made approximately 18 hours later, consequently the respective order has been approved and processed. Please note that although the large majority of orders placed on the service provider’s website are processed within minutes, there are exceptional cases where – for security reasons – the corresponding payments have to be authenticated by taking supplementary actions in this respect and while we do realize this type of processes have the potential to slightly impact the end-user’s online experience, one of our core interests is to protect both the vendors as well as the account holders from illegitimate use of payment credentials.
    We hope the information provided here has helped clarify this issue, however if you have further questions on this subject we would be more than happy to address your concerns. Our support department is available 24 hours a day, 7 days a week at the contact coordinates listed on our official website

    Best regards,
    Avangate Team