LLR Partners today announced a growth capital investment in Message Systems, a digital messaging company. Message Systems will use the investment from LLR Partners to strengthen and further develop its customer engagement software, strengthen its position in current vertical markets and expand into new industry sectors. The transaction also provides liquidity to NewSpring Capital, which invested in Message Systems in 2010, as well as other shareholders.
Message Systems offers a family of software solutions and services that addresses the digital communications needs of companies. Customers include telecommunications carriers, internet service providers, marketing services providers, cloud computing firms and social media companies. Founded in 1997, the company is headquartered in Columbia, MD (www.messagesystems.com).
Message Systems is LLR Partners’ second transaction in the Baltimore-Washington D.C. corridor since announcing its commitment to investing in the region in spring 2011.
“Social media, mobile technologies and emerging digital messaging channels have completely changed the way consumers communicate with each other and with businesses on a daily basis. Message Systems enables enterprises to engage customers through emerging digital channels, and achieve new levels of personalization and targeted interaction,” said Greg Case, partner leading the Software & IT Services investment team at LLR. “It is another example of the Baltimore-D.C. market nurturing strong, under-the-radar, middle market companies that are leading the way in how enterprises leverage new technology.”
“By partnering with LLR, Message Systems will be able to accelerate growth and differentiate ourselves with an expanding suite of solutions,” says George Schlossnagle, founder and CEO of Message Systems. “Our unique technologies help companies with complex challenges in sending and receiving digital messages better leverage data to manage real-time messaging policy. They are proven to drive higher engagement rates, support new monetization strategies and optimize deliverability. The gains our clients in social media and daily deals have realized from mobile and cross-channel messaging are proving just as relevant to enterprises in financial services, retail, consumer technology, travel and more. We look forward to working with LLR.”
Mr. Case and Paul Winn, operating partner at LLR Partners, will join the board of directors at Message Systems.
LLR Partners makes both minority and control investments in middle market growth companies. Industries of interest include healthcare; financial and business services; information technology; and education. LLR is currently investing out of its $800 million third fund, LLR III. The firm has over $1.4 billion of assets under management and is located in Philadelphia, PA (www.llrpartners.com).