Austin newcomer Magnitude Software raises $100 million

Sep 25, 2014
Austin American Statesman

A new arrival to Austin – Magnitude Software – has raised $100 million to build its business by acquiring smaller software companies


Magnitude was created in April through the merger of two software firms, Noetix Corp., based in Redmond, Wash., and Kalido, based in Burlington, Mass


Magnitude will be headquartered in Austin and has named software industry veteran Chris Ney as CEO, company executives said as part of the funding announcement


Magnitude, which has 200 employees, develops business intelligence, data warehousing and other business software. The company has 600 customers with more than 200,000 users in 100 countries


The company plans to use the new funding to buy software companies that have standout products but are struggling to compete with larger companies


Magnitude currently has a small presence in Austin, where it has offices in the Frost Bank Tower downtown. Officials said that going forward Austin will serve as its center of strategy and corporate development efforts


Ney was previously co-founder and president of Silverback Enterprise Group, an Austin-based firm that builds enterprise software companies by buying small and mid-sized firms and combining them to make larger, more competitive players


Silverback has acquired nine business software companies including Noetix


Noetix, which Silverback acquired in June, sells business intelligence software and has more than 1,500 customers including Starbucks, Toshiba, Welch’s and Visa


Kalido develops data management, data warehouse, and business intelligence software. Its customers include Fannie Mae, Visa and Procter and Gamble


Ney helped oversee the merger of Noetix and Kalido to form Magnitude and led efforts to secure the $100 million investment


The lead investor in the Magnitude deal was Audax Group, a private equity firm based in Boston. Ney also made a “significant personal investment” in Magnitude, according to a company statement


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