NetDocuments, the leading secure cloud-based content services and productivity platform for law firms, corporate legal teams, and compliance departments, today announced it has entered into a definitive agreement to receive a significant investment from Warburg Pincus, a leading global growth investor, along with existing investor Cove Hill Partners, L.P. (“Cove Hill”). Warburg Pincus is acquiring Clearlake Capital Group, L.P.’s (“Clearlake”) interest in NetDocuments.
Warburg Pincus’ investment alongside Cove Hill will support the Company’s continued rapid growth and innovation. Terms of the transaction were not disclosed.
For more than two decades, NetDocuments has delivered innovation through its world-class content services and productivity platform. NetDocuments is used by over 3,150 professional services firms and corporate legal departments and recently announced unprecedented growth in Q1 2021, continuing its record setting sales momentum. The Company will continue to be led by Chief Executive Officer, Josh Baxter, and the rest of the current management team.
“The partnership with Warburg Pincus provides tremendous potential to not only strengthen existing customer relationships but tap into new opportunities and markets to become the foundational software for legal professionals,” stated Josh Baxter, NetDocuments CEO. “We are excited to work with Warburg Pincus and Cove Hill on the Company’s next phase of growth and would like to thank Clearlake for their close partnership with our team and for their strategic insight over the years.”
“NetDocuments effectively serves as the platform of productivity for the legal community and is uniquely grounded in its commitment to customer service. The Company's strong track record, paired with a talented leadership team, has positioned it well for the accelerating shift to cloud," said Andrew Park, Managing Director, Warburg Pincus. “We look forward to partnering with Josh, the team at NetDocuments and Cove Hill to bring the Company to its next chapter of growth,” added Alex Stratoudakis, Managing Director, Warburg Pincus.
“Cove Hill is excited to welcome Warburg Pincus as investors in the Company. We are thrilled to partner with them and the strong management team at NetDocuments to drive growth over the long term,” said Jane Levy Vance, Principal at Cove Hill.
“We have greatly enjoyed our successful partnership with NetDocuments over the past four years, as the Company has grown into a leading SaaS platform for the legal industry,” said Prashant Mehrotra, a Partner at Clearlake. “Over that time, NetDocuments has executed on a strategy to rapidly expand its product portfolio through organic R&D investments and extend its go-to-market reach by bolstering the Company’s sales and marketing leadership and resources. We thank the Cove Hill team for a successful collaboration, and we wish the NetDocuments team every success for the future.”
Baxter concluded: “This is about capitalizing on the momentum of the business and our reputation as the cloud platform for content and productivity. With a strong focus on growth and global reach, Warburg Pincus represents a great new partner. The investment will accelerate us both organically as well as through M&A, domestically and internationally. With the continued support of Cove Hill, we have an exciting future ahead of us.”
William Blair & Company LLC acted as the exclusive financial advisor to NetDocuments.
Watch the full interview with Josh Baxter: