Gryphon Acquires Rootstock Software
Lightning Partners advises leading provider of cloud ERP software
SAN FRANCISCO, Aug. 1, 2022 -- Gryphon Investors ("Gryphon"), a leading middle-market private equity firm, announced today that it has acquired Rootstock Software ("Rootstock" or "the company"), a leading provider of cloud-based Enterprise Resource Planning ("ERP") software to manufacturing, distribution, and supply chain organizations, which are increasingly seeking cloud-native, purpose-built ERP solutions to streamline business operations. Both Salesforce Ventures and the company's management team re-invested in the deal alongside Gryphon. Terms of the deal were not disclosed.
Rootstock provides a market-leading, composable cloud ERP solution built on the Salesforce Platform. The company's software helps manufacturers, distributors, and other organizations run their everyday business operations by linking customers, suppliers, and employers to critical data across their organizations at any time and from anywhere. Rootstock has embedded deep industry knowledge and business logic into the design of the platform, which combines cutting-edge, enterprise-grade technology infrastructure, integrated analytics, advanced reporting, and AI / ML capabilities. Headquartered in San Ramon, CA, Rootstock serves a blue-chip client base across North American and international markets.
Jon Cheek, Deal Partner and Head of Gryphon's Software Group, said, "Global supply chain challenges over the last two years have highlighted the need for manufacturers and distributors to modernize the technology that controls their core business operations and processes. Rootstock's ERP platform provides best-in-class cloud software that improves the connectivity between companies and their customers, suppliers, and employees. We're pleased to partner with Salesforce and the Rootstock management team to address the strong and increasing market demand for the company's solutions."
"We are excited by the relationship that Rootstock has built with Salesforce to enable a modern, flexible product that drives efficiency for all organizations but that is uniquely differentiated by the symbiotic value it provides to users of the Salesforce ecosystem," said Sandy McKinnon, Principal of Gryphon's Software Group.
Rootstock's management team will be led by David Stephans, who as part of the transaction has been named CEO of the company following his nine year tenure as an executive with Rootstock, while founder Pat Garrehy will join Rootstock's Board of Directors alongside several industry veterans and operating advisors.
"Gryphon's deep experience growing businesses organically and through acquisitions, particularly in the software sector, will position Rootstock to take advantage of robust opportunities both in the U.S. and internationally," said Mr. Stephans. "We look forward to working closely with the Gryphon team as we continue to innovate and build upon our success."
Added Mr. Garrehy, "I am pleased to have found such an exciting home for the company I have built over the past fifteen years, and I am looking forward to the tremendous opportunity ahead for Rootstock in partnership with Gryphon to accelerate growth, deepen our Cloud ERP products, and better serve our customers."
Lightning Partners served as financial advisor and Reed Smith served as legal advisor to Rootstock in this transaction. William Blair served as financial advisor and Gibson Dunn served as legal advisor to Gryphon in this transaction.
Rootstock Software's Cloud ERP solutions help manufacturers, distributors, and supply chain organizations digitally transform their operations. Built on the Salesforce Platform, Rootstock provides customers the benefits of an enterprise cloud environment and an ERP system that is intuitive, flexible, and digitally connected. The company offers training, product knowledge, and support to help customers configure Rootstock Cloud ERP to meet their needs. This comprehensive offering empowers clients to deliver a superior customer experience, streamline and scale their operations, and out-service the competition. For more information, visit www.rootstock.com.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. The firm has managed over $9 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $50 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $600 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon's capital, specialized professional resources, and operational expertise.
About Salesforce Ventures
Salesforce Ventures helps enterprising founders build companies that reinvent the way the world works. Since 2009, we've invested in and partnered with more than 400 of the world's most tenacious enterprise software companies from seed to IPO, including Airtable, Databricks, DocuSign, Guild Education, Hopin, monday.com, nCino, Snowflake, Snyk, Stripe, Tanium, and Zoom. Salesforce Ventures leverages our decades of expertise in the cloud and our long-term relationships with key decision-makers at thousands of businesses around the world to give our portfolio companies an unfair advantage, help them build credibility, and accelerate growth. Salesforce Ventures has invested in more than 25 countries with offices all over the world including in San Francisco, Irvine, New York, London, Tokyo, and Sydney. Follow @SalesforceVC and learn more at http://www.salesforceventures.com.
About Lightning Partners
Lightning Partners provides direction and advice to growth technology companies and their Boards of Directors on M&A, capital raising and strategy that drive significant shareholder value. The firm consistently and tenaciously delivers optimum results for entrepreneurs, growth companies and their investors, including industry leading valuations, transaction terms and close rates. For more information, visit www.lightningpartners.com.