Software Industry Matures in the Eyes of PE

Thompson Street Capital Partners-backed Iron Data Solutions has completed its acquisition of Versa Systems. Versa provides regulatory software solutions for government agencies throughout North America via products such as its case management software which is used by Social Security to manage disability claims. This is Iron Data's second add-on since Thompson Street Capital Partners invested in the company in 2007.

Private equity firms have invested over $4.5 billion in 90 software companies since the beginning of 2009, according to the PitchBook Platform. The top investors in the industry for 2009 were The Carlyle Group, Thoma Bravo and Warburg Pincus with four deals apiece. 2009 had 10 more software-related deals than 2008 and as of Q3 2009 accounted for 7% of all PE deals, a jump from its previous high of 5% in 2006. Attracting multi-billion dollar investors such as Carlyle and Warburg Pincus hints at the fact that software industry has reached a more mature stage of business.