Swiss Unicorn: Nexthink reaches valuation of USD 1.1 billion
Lausanne/Boston — Nexthink, the leading provider of digital employee experience management software, today announced a $180 million Series D funding round. This brings the company’s valuation to $1.1 billion.
The financing round is led by the Growth Opportunities Fund of international investment firm Permira, with participation from existing investors such as Highland Europe and Index Ventures. Bruce Chizen, Senior Advisor at Permira and former CEO of Adobe, joins Nexthink’s Board of Directors. The company intends to use the proceeds from the financing round to further accelerate innovation, growth and global expansion, particularly in the US.
Nexthink provides IT teams with a comprehensive platform for managing the digital experience of enterprise employees. This enables digital employee benefits to be modernized, reliably delivered, and proactively improved. According to a recent survey, 96 percent of technology executives agree that managing the enterprise digital experience with technology is an essential part of IT teams’ jobs. Still, more than a third (34%) rely on occasional surveys to collect related data, and nearly half (46%) don’t measure their employees’ digital experience at all. Nexthink’s award-winning platform provides enterprise IT with a cloud-based solution that provides comprehensive visibility into employees’ day-to-day experiences with technology at the device, application and network levels. The detailed analysis capabilities and visualizations greatly facilitate troubleshooting and enable IT teams to continuously improve employee satisfaction with IT and resolve issues within minutes.
Nexthink currently employs nearly 700 people and plans to grow to 900 by the end of 2021 — across all major locations in Europe, India and the US. In the past fiscal year, the company continued to grow rapidly, surpassing the $100 million mark in recurring revenue (ARR). The number of customers has increased by more than 180 to now more than 1,000 companies, including global firms that use the software on more than eleven million workstations.
In 2020, Nexthink launched numerous new products, including the Remote Worker Experience solution, Experience Optimization for proactive support teams, and additional features for virtualization and individualized IT support. In the Forrester New Wave™: End-User Experience Management, Q4 2020, Nexthink was recognized as a market leader.
“The trend towards decentralized working has significantly accelerated the need for software solutions for the digital experience with IT in companies. This is because a significant portion of employee interactions are now completely digital,” says Pedro Bados, CEO and co-founder of Nexthink. “We are facing a unique opportunity to redefine now how companies will provide digital workplaces to their employees in the future. We are delighted to have found a new partner in growth investor Permira to accompany us on this exciting journey. Bruce is an excellent addition to our team. As CEO of Adobe, he has inspired millions of users with visionary software and permanently changed the way people work together. Together with him, we now aim to do the same with Nexthink at thousands of companies worldwide.”
“Nexthink has seen rapid growth in recent years,” says Bruce Chizen. “With the shift towards decentralized and digital working, the digital experience with IT in companies takes on a prominent importance for employee satisfaction. With this round of funding, Nexthink is well equipped to reshape the role of IT for the world’s largest companies and provide a platform for optimally aligned digital workplaces.”
“Disruptive software providers that help increase productivity and employee satisfaction in companies are a key investment focus for Permira in the technology sector. With its strong growth and technology focus, Nexthink therefore fits perfectly into the strategy of the Permira Growth Opportunities Fund,” adds Pierre Pozzo, Principal at Permira.
The Permira Funds’ investment is from the Growth Opportunities Fund I, which focuses on minority investments in high-growth companies. The Permira funds are among the largest software investors in the world. Well-known investments include TeamViewer, a global platform for the digital networking of people and machines, Mirakl, a SaaS marketplace platform, Zwift, a global online fitness platform for cyclists and runners, and Klarna, the leading innovative payment service provider.
The closing of this transaction is scheduled for Q1. www.nexthink.com.
Permira is a global private equity firm, was founded in 1985 and advises funds with a total volume of around USD 50 billion. The Permira
advised funds invest in companies for the long term with the aim of increasing the value of these companies through sustainable growth. Permira advised funds have completed more than 250 transactions in four key sectors: Technology, Consumer Goods, Services and Healthcare. Permira employs more than 250 people at 15 locations in Europe,
North America and Asia.
About Highland Europe
Highland Europe invests in extremely high-growth software and Internet companies. Operating as Highland Capital Partners in Europe since 2003 and officially launched in 2012, Highland Europe has raised over €1.8 billion and invested in companies such as Adjust, AMCS, Camunda, ContentSquare, Featurespace, GetYourGuide, Huel, Jellysmack, Malwarebytes, MatchesFashion, NewVoiceMedia, Nexthink, Spot, Supermetrics, WeTransfer, Wolt and Zwift. Highland’s total investments in the U.S., Europe and China include 46 IPOs and companies valued at more than $19 billion.
About Index Ventures
Index Ventures is an international venture capital firm based in London and San Francisco that helps the most ambitious entrepreneurs turn bold ideas into global business. Index-backed companies that are reshaping the world around us include Datadog, Dropbox, Elastic and Slack.