Austin Ventures Announces Partnership With Silverback Acquisitions

New Venture to Consolidate Enterprise Software Companies


AUSTIN, TX--(Marketwire - November 3, 2010) -  Austin Ventures ("AV"), one of the nation's leading venture and growth capital firms, announced today a partnership with Silverback Acquisitions ("Silverback"), a value-oriented consolidator of subscale enterprise software companies launched by noted Austin entrepreneur, Jack McDonald, who serves as Chairman and CEO. AV is the lead investor of an $11.5 million seed-funding round for Silverback and has committed a total equity growth-capital investment of up to $50 million.

Chris Ney, most recently a Trilogy, Inc. executive, is Silverback's president and COO, and on the founding team. While at Trilogy, Ney was CEO of Trilogy portfolio enterprise software companies, Versata, Tenfold and ETI, where he introduced innovative customer support and licensing programs that drove higher customer retention and increased recurring revenues and top-line growth. Mike Hill, an 18-year finance and acquisitions veteran who served as the chief financial officer of Perficient and executed eight acquisitions while there, is Silverback's CFO.

Prior to Silverback, McDonald spent more than a decade as Chairman and CEO of Perficient, Inc., an industry-leading IT consulting firm that serves Global 2000 companies. Under McDonald's leadership, Perficient grew from a start-up with eight employees to a publicly-traded company with a market cap of $500+ million, $200+ million in revenues, more than 1,200 employees and offices throughout the US and in China, India and Eastern Europe. McDonald completed 17 acquisitions while at Perficient and led the company's IPO. A serial entrepreneur, McDonald won the Ernst & Young Entrepreneur of the Year Award for Central Texas in 2005.

"This is an all-star team with deep experience and a proven track record in technology acquisitions, finance and operations," said John Thornton, General Partner, Austin Ventures. "We are very enthusiastic about working with Jack, Chris and Mike to build a differentiated, high-growth software business."

Silverback will be a high-growth consolidator that makes disciplined acquisitions of financially- and operationally-challenged enterprise software businesses and improves their performance through a singular focus on long-term customer success and a lean operating model that emphasizes Internet-enabled partnerships and global sourcing.

"Enterprise software is a $200 billion market and there is a tremendous, untapped opportunity to consolidate sub-scale software companies in that space," said McDonald. "Our disciplined acquisition strategy, differentiated operating model, experienced team and strong partners like AV make this a great platform for growth and value creation."

AV's relationship with Silverback is part of a stated strategy to partner with talented executives with proven track records to build growth companies in attractive markets. AV has a dedicated in-house talent function that identifies executives that want a hands-on partner in building their next business.

Silverback Acquisitions will be based in Austin, Texas, and will evaluate potential deals in the United States and abroad.

About Silverback Acquisitions
Silverback Acquisitions is a high growth, value-oriented consolidator of subscale enterprise software companies. Founded in 2010, Silverback Acquisitions makes disciplined acquisitions of financially- and operationally-challenged enterprise software businesses and improves their performance through a singular focus on long-term customer success and a lean operating model that emphasizes Internet-enabled partnerships and global sourcing. Visit www.silverbackacquisitions.com for more information.

About Austin Ventures
Austin Ventures ("AV") has worked with talented entrepreneurs to build valuable companies for over twenty-five years. With $3.9 billion under management, AV is the most active venture capital and growth equity firm in Texas and one of the most established in the nation. With an investment focus on business services and supply chain, financial services, new media, Internet and information services, software, and Texas special situations, AV invests at all stages of company development, from $100,000 in "planned experiments" in early stage ideas to $100+ million investments in expansion rounds, minority recapitalizations, and buyouts of lower middle market growth companies. AV's strategy is to partner with talented executives and entrepreneurs through its CEO-in-Residence and Entrepreneur-in-Residence programs. Visit austinventures.com for more information.

Contact Information:

For more information contact:
Kim Hughes
Austin Ventures

512.657.7222 (mobile)
512.485.1955 (direct)