Ivanti Q2 Revenue and Earnings Drop Amid Subscription Shift
- The revenue and profit drop arrives as the enterprise-grade intelligent IT management and security software provider works to scale its cloud-based offerings.
- Despite the quarterly dip, the enterprise software maker has continued to draw major financial backing from institutional investors.
- Ivanti continues to be led by Chief Executive Officer Jim Schaper alongside the existing management team.
The revenue and profit drop arrives as the enterprise-grade intelligent IT management and security software provider works to scale its cloud-based offerings.
Investment Backing and Growth Strategy
Despite the quarterly dip, the enterprise software maker has continued to draw major financial backing from institutional investors. According to an announcement from TA Associates, the growth private equity firm signed a definitive agreement to make a strategic growth investment in Ivanti, joining existing institutional shareholder Clearlake Capital Group, L.P. The transaction is expected to close in the second half of 2020, pending customary regulatory approvals and closing conditions, according to TA Associates.
The additional capital is intended to fund product innovation, global expansion, and an ongoing acquisition strategy, according to company statements. Ivanti provides solutions that automate IT and security operations for more than 24,000 customers across five continents, allowing administrators to discover, manage, secure, and service IT infrastructure ranging from cloud environments to edge devices.
Leadership and Market Position
Ivanti continues to be led by Chief Executive Officer Jim Schaper alongside the existing management team. According to Jim Schaper, the company’s ability to address critical IT needs through intelligent software solutions positions it well for future success amid uncertain market conditions.
Board representation is also slated to shift following the close of the TA Associates transaction. Behdad Eghbali and Prashant Mehrotra of Clearlake Capital will remain on the Ivanti Board of Directors, while Harry Taylor and Hythem El-Nazer of TA Associates will join the board, according to the investment announcement. Clearlake managing partners noted that Ivanti’s cloud solutions more than doubled organically in the two years leading up to the 2020 investment agreement, driven by rapid scaling in security and enterprise service management solutions.
