TA Associates announced a major investment in Bomgar, an enterprise remote support solutions provider. What could the investment mean for both of these companies?
Bomgar Chairman Joel Bomgar
Global private equity firm TA Associates is now a majority investor in Bomgar, an enterprise remote support solutions provider. Bomgar Chairman Joel Bomgar said he expects the investment will play an important role in his company's long-term growth.
"We're confident that TA's majority investment will prove a significant milestone in the evolution of our company and take Bomgar to the next level," Bomgar said in a prepared statement. "TA offers valuable investment expertise, particularly in the technology sector, which will help Bomgar to grow, both locally and internationally, and expand into new markets."
Terms of the investment were not disclosed, but Bomgar will keep its headquarters in Jackson, Mississippi, and maintain offices in Atlanta, Washington D.C., London, Paris and Singapore.
In addition, Bomgar has named Matt Dircks as its chief executive officer (CEO). Dircks previously served as vice president and general manager of service support products at BMC Software.
Dircks commented on TA's investment in a prepared statement:
"We are very pleased to partner with an experienced investor like TA Associates. We see numerous avenues to build even greater value in Bomgar by not only accelerating the organic growth the company has enjoyed since its founding, but also looking at exciting new market opportunities. The consumerization of IT paired with the influx of devices making up the Internet of Things is creating demand for new ways to access, support and manage remote systems. With TA's guidance, we will have additional experience and resources to fully leverage these opportunities."
Bomgar has been busy over the past year. The company released Bomgar 13.1 last July, and this update included new capabilities for the company's presentation tool, user interface enhancements and embedded remote app support.
Meanwhile, International Data Corporation (IDC) reported the clientless remote support market that Bomgar serves has grown at a compound annual growth rate (CAGR) of 19 percent since 2012. Hythem T. El-Nazer, a director at TA Associates who will join Bomgar's board of directors, noted the investment could help accelerate Bomgar's growth.
"Many enterprises have found the free remote access tools and chat products historically used for tech support to be inadequate or insecure," El-Nazer said, in a prepared statement. "In addition, large companies require platforms that support a wide range of devices and operating systems and scale to concurrently serve thousands of users. Given the high costs of phone-based support and the continued mobilization of workforces utilizing both corporate and personal laptops, tablets and mobile devices, we see ongoing growth opportunities for Bomgar."