San Francisco-based private equity firm Vector Capital has sold LANDesk, a Utah-based provider of integrated systems, security and process management solutions to Avocent for $416 million (€330 million).
The transaction comprises $200 million in stock, $200 million in cash and $16 million in assumed options. According to Vector Capital, the transaction value will increase by up to $60 million if LANDesk meets agreed financial targets.
Vector Capital led the spin-out of LANDesk from parent company Intel in September of 2002 for an undisclosed sum. According to media reports, Vector Capital has made more than 10 times its money on the sale to Avocent. Other investors in LANDesk include vSpring Capital, Intel Capital and Blueprint Ventures.
Operating principally in the enterprise desktop administration market, LANDesk develops software for the centralised management and protection of information technology assets. According to Vector Capital, the firm has grown its revenue at an average rate of 25 percent since inception and has been cashflow positive every year.
Founded in 1997 by managing partner Alex Slusky, Vector Capital manages over $600 million in capital. The firm closed its latest vehicle, Vector Capital III on $350 million in February 2005.