TA Associates and Silversmith Capital Partners Eye $2 Billion Stake Sale in Appfire

Investment firms TA Associates and Silversmith Capital Partners are considering selling a stake in Appfire, valued at over $2 billion. They have engaged investment bankers from JPMorgan Chase and Lazard for the potential sale. Appfire aims for a high valuation based on its substantial revenue and growth projections.

Investment firms TA Associates and Silversmith Capital Partners are exploring the possibility of selling a stake in Appfire, a collaboration software company, in a deal that could value the firm at more than $2 billion, according to sources familiar with the matter.

TA and Silversmith have engaged investment bankers from JPMorgan Chase and Lazard to consider selling up to a 60% stake in Appfire. The current owners may retain a portion of their stakes as part of the deal. Potential buyers include other private-equity firms, sources said on the condition of anonymity due to the confidential nature of the discussions.

Appfire is expected to achieve a valuation exceeding 20 times its earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $100 million. The company is projected to generate close to $300 million in revenue for 2024, with an annual growth rate of 30%. Silversmith, JPMorgan, and Lazard have declined to comment, while TA Associates and Appfire have not responded to requests for comment.

Burlington, Massachusetts-based Appfire provides workflow collaboration software to customers such as Adidas, Docusign, and NASA. Its software is sold through platforms of major technology firms including Microsoft, Salesforce, Atlassian, and monday.com.

In a related context, Smartsheet, another workplace collaboration software company, reportedly engaged investment bankers following acquisition interest from buyout firms. TA Associates acquired a significant stake in Appfire in 2021, one year after Silversmith invested $49 million in the company.

(With inputs from agencies.)