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Global private equity firm Carlyle Group has acquired UXM software solutions provider 1E. Sumir Karayi, with his minority stake in the company, shall remain the CEO, and most of the senior management staff will be retained. Cormac Whelan will become the new Chairman
Unified experience management (UXM) software solutions provider 1E has announced that global investment firm Carlyle Group has acquired a majority stake in it in a deal that reportedly values the company at $270 million. Other financial details of the transaction were not disclosed by either of the companies.
According to Carlyle’s press release, Sumir Karayi, founder and CEO of 1E, will retain a significant minority stake in the company now and shall remain the CEO. Most of 1E’s senior management staff will be retained, while Cormac Whelan will be appointed as the chairman. Employees will own a portion of the business and share in the company’s future growth.
Carlyle stated that it would support 1E’s international growth aspirations, including expanding its software enterprise business in the US and the UK. It would also extend support into 1E’s innovative product suite and go-to-market teams. The equity for this investment, €1.35 billion ($1.6 billion), had come from Carlyle Europe Technology Partners (CETP).
Commenting on the acquisition, Fernando Chueca, managing director at the CETP, revealed that Carlyle was attracted to 1E’s fully integrated digital experience technology, having advanced remediation and automation capabilities, which makes it unique.
With strong industry tailwinds, we believe 1E has significant growth opportunities, and we look forward to supporting another founder-backed business to scale through investments in product innovation, commercial operations, and international expansion,Fernando Chueca, managing director at the CETP
Mr. Karayi stated that the industry was at an inflection point due to the pandemic, added that the pandemic had accelerated a market opportunity to help global businesses in transforming the employee experience.
The industry is at an inflection point, and we’re poised for rapid growth as businesses formulate their post-pandemic plans for work. We are delighted to have the backing of Carlyle. Their experience with high-growth technology companies with strong expertise in infrastructure software makes them the right partner to propel us through the next stage of our journey and illustrates 1E’s potentialSumir Karayi, founder and CEO of 1E