Building a Global Leader in Big Data Integration Software

Background

As part of a regular practice of developing investment themes from broader market and technology trends the Silver Lake Sumeru team built an investment thesis focused on management of Big Data in large enterprises. Rapid increases in computing power and low cost information storage capabilities were enabling businesses to collect, save and retrieve vast amounts of data. Sumeru began exploring investment opportunities in companies that help customers analyze and organize these growing data pools. Talend is a specialist in data integration and data management solutions based on a unique “code-generating” architecture. In 2010 Talend’s co-founders were seeking a partner to help expand the business globally, finance a strategic acquisition and provide expansion capital. They chose Sumeru based on our deep experience in sales and marketing and product development strategies for enterprise software and ability to help expand the business globally.

Value Creation

We worked closely with the founders and the executive team to build a plan to support international expansion, improve the efficiency of the go-to-market (including both sales and marketing elements) model, complete a complementary acquisition, and enhance the organization to support growth. Key elements of the value creation plan included:

  • Identifying opportunities to drive operational efficiencies in sales and marketing to optimize the process of customer acquisition and improve retention rates while increasing sales growth
  • Working with the management team to enhance the product strategy, with changes to exploit the fast-growing big data architectures (Hadoop) and a commitment to delivering all Talend capabilities in both on-premise and fully cloud-hosted models
  • Recruiting an experienced and world-class management team based in Redwood City, California, including a CEO, Chief Technology Officer, Chief Marketing Officer, SVP Sales, SVP People and SVP Customer Success.
  • Completing a complementary acquisition in Europe
  • Arranging a line of credit to support working capital needs as the business grew
  • Transitioning to a business model that could support strong organic revenue growth and generate positive cash flow

Results

Talend’s rapid growth and strong positioning in a dynamic market enabled it to go public in July 2016 (NASDAQ: TLND). Between the time of the initial investment and the IPO, the company’s recurring revenues grew over 6x with improved profitability and cash flow, as the company established itself as the leader in cloud and big data integration. During the same time period, Talend’s employee population nearly doubled and the company significantly increased its penetration of global enterprise accounts. In 2016 Talend was named a Leader in Gartner’s Magic Quadrant for Data Integration Tools, the first new vendor in five years to achieve that distinction.

“The Sumeru team have been great partners in helping Talend become a leader in data integration software. In addition to providing capital to fund the strong growth of our business, they were valued thought partners to me in every step of the journey toward our successful IPO.”

Mike Tuchen, CEO