ForeSee ‘s Situation:
In 2007, ForeSee was jointly owned by one of its founders and by Compuware, a large publicly traded systems software company. The business had a differentiated approach to measuring and analyzing customer satisfaction online using a proprietary algorithm, and delivered its solution through as SaaS model. However, Foresee was not strategic to Compuware, which sought to reduce its ownership and exposure to the business. At the same time, Foresee’s management wanted an investment partner that could take the Company to the next stage of growth. Updata believed the rapidly-expanding e-commerce sector would require technologies, like Foresee’s, to help online retailers increase the value of customer relationships, and it was impressed with the momentum Foresee had generated in a short period of time. Updata also had a long-standing relationship with Compuware and its senior executives.
Updata structured and executed the transaction that recapitalized Foresee separate from Compuware, with sufficient capital to fund its accelerated expansion. Updata focused on scaling Foresee’s sales team and expanded ForeSee’s market opportunity to include international expansion as well as offering solutions for “offline” customers in store and call centers. Additionally, Updata helped to enhance the Foresee management team with key hires including a new CFO, VP of Marketing and VP of Sales. Finally, Updata worked with ForeSee to broaden and enhance its product footprint beyond satisfaction measurement through two technology acquisitions.
Foresee is now a the recognized leader in online customer satisfaction analytics with a blue chip customer base that spans online retail, traditional retail, government and mobile commerce. As a result, revenues more than quadrupled during the period of Updata’s investment, while the Company consistently maintained high margins and overall profitability. In December 2013, Answers.com acquired Foresee for more than $200 million.
“The team at Updata Partners understands the complexity of running a business day-to-day. Because they’ve had to make the same decisions I face, their counsel is particularly valuable. They work side by side with me and the rest of the Foresee management team to maximize this business’s potential.”
– Larry S. Freed, CEOPortfolio Page