Host Analytics has announced that Vector Capital has now completed the acquisition of the Enterprise Performance Management software vendor. The announcement brings to an end the six year reign of CEO Dave Kellogg. Kellogg commented: “Host Analytics is a terrific company and it has been an honor (to) lead this dynamic organization. I firmly believe the company’s best days are ahead.”
CFO, Ian Charles is also stepping down from his role, one that he has held for five year. Both Charles and Kellogg will assist the new leadership team during an interim period.
Ron Baden, currently chief revenue officer and a nine year veteran of Host Analytics is named interim CEO. He will be supported by interim CFO Dan Fletcher, vice president at Vector Capital.
What now for Host Analytics
In his inaugural statement Baden stated: “I am excited about the future of Host Analytics under Vector Capital. We are in a great position in an attractive market and have the capital and support we need to accelerate growth both organically and through acquisitions.”
The question for the new leadership team is how they will execute on that growth. The inference is that Vector Capital are likely to invest in expansion. However, whether that will be growth through acquisition or investment in international expansion remains to be seen.
David Fishman, Managing Director at Vector Capital commented: “We are pleased to complete this transaction and look forward to supporting Host Analytics, which has a tremendous opportunity in the growing cloud enterprise performance management space. On behalf of the company, I’d like to thank Dave and Ian for their strong leadership over the years and helping to build Host Analytics into the category leader it is today. I’d also like to congratulate Ron and Dan on their new appointments.”
Enterprise Times: What does this mean
Another EPM company changes ownership and leadership. Another being Adaptive Insights, bought by Workday in August 2018. According to MarketandMarkets the global EPM market is set to grow from USD 7.28 billion to USD 11.23 billion by 2023, a CAGR of 10%. That growth has clearly attracted Vector Capital. It clearly sees an opportunity to consolidate on a company that is already recognised by Gartner as a leader (paywall from Gartner though available through other vendors such as Adaptive Insights – with registration).
There are other players in this market. Oracle Planning and Budgeting Service (PBCS) is seen as the leader in the space by Gartner. There is likely to be further consolidation now with Vector Capital eager to extend the breadth of its product and customer base. Other vendors may also look to acquire an EPM vendor. One of these is SAP who is not currently in the leader quadrant for example.