Appfire’s owners explore sale of stake in collaboration software maker, sources say

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By Milana Vinn

NEW YORK (Reuters) – Investment firms TA Associates and Silversmith Capital Partners are exploring options including the sale of a stake in Appfire, in a deal that could value the collaboration software maker they own at more than $2 billion, according to people familiar with the matter.

TA and Silversmith have tapped investment bankers at JPMorgan Chase and Lazard as they weigh selling up to a 60% stake in Appfire, the sources said, adding that the owners could roll over a portion of their stakes as part of a potential deal.

The sources, who requested anonymity as the discussions are confidential, said potential buyers of the stake include other private-equity firms.

Appfire is hoping to command a valuation equivalent to more than 20 times its earnings before interest, taxes, depreciation and amortization of roughly $100 million, the sources said. The company is expected to generate close to $300 million in revenue for 2024, the sources said, adding it is growing revenues by 30% annually.

Silversmith, JPMorgan, and Lazard declined to comment. TA Associates and Appfire did not respond to requests for comment.

Burlington, Massachusetts-based Appfire provides workflow collaboration software to customers, including German shoe and sports apparel giant Adidas, e-signature company Docusign, and NASA.

Its software applications are sold through platforms of large technology corporations including Microsoft, Salesforce, Atlassian, and monday.com.

Smartsheet, a U.S. maker of workplace collaboration software with a market value of $6.6 billion, has tapped investment bankers after attracting acquisition interest from buyout firms, Reuters reported in July.

TA picked up a significant stake in Appfire in 2021, a year after Silversmith made a $49-million investment in the company.

(Reporting by Milana Vinn in New York; Editing by Rod Nickel)