Customer Letter and FAQ

An Open Letter to our Customers and Partners

Today, we are pleased to announce that CollabNet VersionOne (CollabNet) is now a part of TPG Capital. This change of hands from Vector Capital marks a new chapter for CollabNet as we join the TPG family of companies. CollabNet remains just as you know it, including our people, products, support, and services so you don't have to do anything differently. In fact, joining TPG will enable us to improve how we serve you well going forward.

Founded in 1992 with a strong Silicon Valley heritage, today TPG has a portfolio valued at more than $108B. The firm has a long history of investing in innovation and provides its companies with additional resources and strategic expertise to help them reach new levels of growth.

From a customer and partner standpoint, we will continue to serve you as CollabNet, and you simply continue using the products as you always have – whether that is VS, VersionOne, TeamForge or any of the other products. Your scheduled courses and service engagements will also carry on as planned. And, you engage with Customer Support in the same way as you've been doing.

In the future, with TPG's support and investment in CollabNet, we see an incredible opportunity to enable organizations to communicate, innovate, and deliver faster, not only at the team level, but also up and across the entire organization. Being a part of the TPG family will significantly expand our ability to solve your business challenges today and as they change in the future.

Although we don't require you to do anything, we are committed to making this transition as smooth as possible. So, if you have questions about your CollabNet account, please contact your account representative.

Whether you've been with CollabNet from the beginning or just recently joined us, we'd like to sincerely thank you for being our valued customers and partners. Since 2001, you've been the reason we've come to work every day, and we look forward to continuing to serve you as part of the TPG family.

Thank you,

Flint Brenton
CEO CollabNet


Frequently asked questions (FAQ)

1. Why is TPG acquiring CollabNet from Vector Capital?

  1. TPG has been studying the software delivery and DevOps space for the past several years. Recognizing how fragmented the market is today, they see a compelling opportunity to advance a greater vision of Agile and DevOps at scale by building a much-needed, integrated Agile and DevOps platform targeted to enterprise customers.
  2. TPG sees CollabNet's strong footprint and commitment to enterprise customers as the right starting point from which to build and consolidate. Together, TPG and CollabNet will work to accelerate the growth of company's existing product portfolio and pursue acquisitions in strategic, adjacent technologies.

2. Why did Vector decide to sell CollabNet?

  1. This was the right fit at the right time.
  2. Vector helped transform CollabNet into a leader in Agile and DevOps at enterprise scale. Now, the timing of this deal is ideal from a market standpoint. There is a growing demand for enterprise scale solutions and CollabNet can build out that roadmap with TPG's support. The backing of much larger entity with the right portfolio will enable CollabNet to capitalize on growing market opportunities at a scale.
  3. TPG is a leading private investment firm with a $108 billion in assets under management. The firm is well positioned – with its portfolio of adjacent technologies, domain expertise, and history of innovation and market foresight – to elevate CollabNet to the next level and help it capitalize on new market opportunities.
  4. TPG has impressive broad and deep global reach with offices in all major countries.
  5. Also, TPG's expansive reach and portfolio comes with strong customer relationships across industries and the public sector, and TPG is well positioned to open doors and conversations about CollabNet solutions.

3. What are the financial terms of the deal?

  1. The terms of the acquisition are not being disclosed.

4. How will customers benefit?

Customers will benefit in several ways.
  1. First, we will continue investing in and supporting customers' current solutions. Our roadmap will be updated to carry them forward with new functionality and capabilities. As we advance our roadmap, we will partner with customers to get their input and understand their future needs. They also will benefit from the accelerated Agile and DevOps innovation, and new capabilities.
  2. Customers will find that TPG is an ideal partner, working closely with CollabNet management to help enable the company's growth objectives. Together, TPG and CollabNet will build and enhance CollabNet's product portfolio as the company works to further its transformation into a leading, enterprise DevOps platform.
    1. CollabNet sees an opportunity to leverage TPG's expertise and network to strengthen its roadmap with important new capabilities and solutions to give customers a unified way to manage the entire software lifecycle for improved performance, collaboration and value.
    2. Also, TPG will provide the financial strength and stewardship customers need in a partner as they help CollabNet build out high-impact software transformation strategies.

5. Which companies do you view as your main competitors?

  1. There is a lot of change happening in the Agile and DevOps space as current providers work to anticipate and build for customer needs. This validates the vision that we will work with TPG to execute and positions us well for serving Enterprise DevOps needs at scale.
  2. In terms of competition, in the short-term we will see the usual products from vendors in the Agile and the DevOps market. As we execute on our growth and consolidation strategy, we'll bring larger players into the fold, which further validates the great market opportunity for enterprise DevOps.

6. We're already seeing market consolidation such as the recent IBM and Red Hat, Atlassian and AgileCraft, and Cloudbees and Electric Cloud – what makes you think you can win in an increasingly formidable market?

  1. CollabNet was the first company in the industry to build a thought leadership platform, vision, and solution around Value Stream Management. Now this is recognized by the analysts and other industry influencers. We are an established leader in enterprise Agile, DevOps and Value Stream Management with a long history of serving large enterprise organizations.
  2. This footprint, coupled with TPG's vision, resources, and industry expertise will allow us to build a world-class, integrated DevOps platform company that can compete with any competitor in the market.

7. Will Flint Brenton stay on as CEO?

  1. Yes, Flint will remain as CEO of the company.

8. Will any other management changes take place?

  1. No, management will stay on board; we expect business as usual. As CollabNet starts to expand and execute on its growth strategy, we expect to add more talent to help build on the team's strength.

9. What is TPG's plan for CollabNet?

  1. In connection with the acquisition, TPG is committing up to $500 million in equity capital to help fuel the growth and expansion of CollabNet's business as part of a broader strategy to build a leading, integrated, enterprise-focused DevOps platform company.
  2. TPG and CollabNet will work together to build on the company's enterprise software success through organic investment and strategic acquisitions. It will help focus the company on delivering the most complete and integrated Agile and DevOps platform in the industry.

10. How does CollabNet fit in with TPG's other portfolio companies?

  1. TPG is an experienced industry investor with a history of identifying and investing in technology that is innovative and disruptive, both in the B2C and B2B markets. The Agile and DevOps markets are primed and ready for consolidation and innovation.
  2. The firm is a long-term partner to technology companies and management teams in helping them to thoughtfully grow and scale their businesses. Some examples of TPG's investments in the software and enterprise tech space include C3.ai, Kaseya, McAfee, Noodle.ai, Sonatype, Wind River, and Zscaler.

11. Does TPG expect to make more investments in CollabNet or more acquisitions in the software tools space?

  1. Yes, to both. TPG will work with CollabNet leadership to identify strategic investments for in-house innovation and outside acquisition of complementary capabilities, including testing, release management and emerging Value Stream Management technologies.

12. What can we expect from CollabNet in the future?

  1. CollabNet will continue to focus on meeting the needs of our customers. Our SMB customers who rely on our Agile planning and management solutions can continue to depend on our solutions. And we're also committed to enabling teams and large enterprise customers that need an end-to-end platform to manage teams, processes and software flow from concept to release.

Final Note
Our goal is to help customers address the high level of tool and solution fragmentation in the Agile and DevOps market, and to help them create a single, unified software workflow. By doing that we can also address the need for large scale enterprise DevOps needs. Value Stream Management is an important enabling capability for that, and CollabNet understands that better than any other vendor in the market today.