After a five year hold, The Riverside Company has sold YourMembership, a SaaS provider of membership management software, to Ministry Brands, a portfolio company of Insight Venture Partners since December 2016.
YourMembership.com is a SaaS provider of membership management software, learning management software, online career centers, websites, event management, and online social communities. The company’s products are used by its customers – mainly member-based organizations, such as associations, non-profits, chambers, and corporate groups – to attract more members, reduce costs, and increase revenue. The company was founded in 1998 and is headquartered in St. Petersburg, FL (www.YourMembership.com).
YourMembership saw growth in both sales and EBITDA during Riverside’s ownership driven in part by three add-on acquisitions, which enhanced the company’s product capabilities, expanded its customer base, and strengthened its management team. The company’s revenues and EBITDA increased roughly eight-fold and seven-fold, respectively, since 2011. The three add-on acquisitions completed by Riverside were Digital Ignite (Lombard, IL) in January 2015; JobTarget’s Career Center Business Unit (New London, CT) in September 2014; and Affiniscape (Austin, TX) in December 2012.
“Coupled with excellent organic growth, the integration of three key add-ons helped transform YourMembership during the Riverside hold period,” said Riverside Managing Partner Loren Schlachet. “Working with an outstanding management team at YourMembership helped us rapidly scale the business. They were true innovators in their industry.”
Riverside Partner Joe Manning said that investments in product development, sales and marketing, and geographic expansion helped drive rapid growth. “When we invested in YourMembership in January 2012, it was a single product company with a relatively small base of employees and revenue, a single office location, and a limited product development team,” said Mr. Manning. “Fast forward five years, and YourMembership has been transformed into a multi-product company with over 300 employees, six offices including offices in Europe and Asia, a global base of over 4,000 customers, and a market leadership position that will enable the company to continue its rapid growth trajectory.”
Ministry Brands, the buyer of YourMembership, is one of the largest providers of cloud-based services to churches, parachurch ministries and other faith-based organizations with more than 45,000 customers. Parachurch organizations are Christian faith-based organizations (businesses, non-profit corporations, or private associations) that work outside and across denominations to engage in social welfare and evangelism, usually independent of church oversight. Ministry Brands’ products include background checks, church management software, financial accounting software, messaging, coaching programs, giving and payment processing, and website development software. Ministry Brands was founded in 2012 and is based in Knoxville, TN (www.ministrybrands.com).
Working with Mr. Schlachet and Mr. Manning on the transaction for Riverside were Operating Partner John Kish, Finance Director Lynda Barr and Associate Rahul Mohan.
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has invested in more than 450 transactions. The firm’s international portfolio includes more than 80 companies. The firm is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Harris Williams (www.harriswilliams.com) was the financial advisor to Riverside on the transaction.
© 2017 Private Equity Professional | February 2, 2017
