What are the details of the new investment?
The investment is approximately $350 million. The round is led by Warburg Pincus with participation from Accel. Updata Partners will remain a significant investor.
Why did we decide to partner with Warburg Pincus & Accel as new investors?
Warburg Pincus has an outstanding track record of helping companies – especially those at our stage – accelerate growth as they scale. They have an extensive team of former C-level executives across a variety of functions whose sole focus is helping Warburg’s portfolio companies maximize their opportunities to grow.
Warburg and Accel have previously partnered on several investments with outstanding results. Like Warburg, Accel brings significant value to their portfolio businesses through their vast network and knowledge of the technology sector.
We believe that actively partnering with these new investors will maximize our opportunity to transform CData into a leading company in data connectivity and integration.
What attracted Warburg Pincus & Accel to invest in CData?
Investors were attracted to CData’s market leadership in connectivity, strong business performance, unique combination of high growth and high profitability, and innovative product roadmap.
The investors’ extensive market research underscores that the demand for connectivity will continue to grow at a rapid pace within our direct and OEM segments. They also recognize that the emergence of AI will only further accelerate the demand for best-in-class connectivity.
How does this investment impact CData?
This investment will only support and enhance our current plan to continue profitably scaling the business as we’ve always done. The new investors share our focus on profitable growth.
In collaboration with our new investors, we will expand operations, product development, and go-to-market strategy. That said, it is important to our team that we are discerning in which opportunities we decide to pursue.
Warburg Pincus and Accel will join our Board of Directors, alongside our existing investor Updata Partners.
How does this investment impact me as a customer?
There is no immediate change in how we operate the business.
As we begin working with the new investors, elements of our business and product strategy will evolve. We’re confident this will only prove to benefit our customers by strengthening our product offerings, services, and support.
