Leader in IP Network Route Analytics Receives Cash Infusion to Accelerate Growth
SANTA CLARA, CA — March 19, 2013 — Packet Design, the leading provider of IP network route analytics software announced today that it has been acquired by Lone Rock Technology Group, an Austin-based private equity firm specializing in enterprise software. S3 Ventures, an early stage venture firm with a focus on information technology and also based in Austin, joins Lone Rock as a major investor in the company. With the deal, Packet Design announced it has appointed Scott Sherwood, a network and systems management industry veteran, as its new CEO.
Since it was founded in 2003, Packet Design has pioneered the complex science of route analytics. Its patented technology provides unique visibility into routing and traffic behavior across the entire cloud. Network managers at hundreds of the largest service providers, mobile operators, cable and broadband providers, enterprises and government agencies spanning five continents rely on the intelligence Packet Design provides to optimize the performance and control of their networks.
“We believe Packet Design’s technology, world-class talent, and marquee customers position it extremely well in a market growing over 12% CAGR, and we are excited by the opportunity for growth,” said Joel Trammell, Managing Partner of Lone Rock Technology Group. “The cash infusion from recapitalizing the company will help fuel that growth.”
Sherwood joins the company as CEO after a highly successful career leading global sales organizations in the enterprise software space. Most recently, he was Senior Vice President of Sales at Cache IQ, a network-based caching company that was acquired by NetApp in 2012. Before that, Sherwood led all aspects of global sales and business development for ScienceLogic, a leading IT operations and cloud management company. Prior to ScienceLogic, Sherwood headed worldwide sales at NetQoS, where he helped the company grow revenues from $200,000 to $56 million at a 50% CAGR, and deliver 31 consecutive quarters of double digit revenue growth. This success ultimately led to NetQoS being acquired by CA Technologies in 2009.
“I am thrilled and honored to be joining Packet Design,” said Scott Sherwood, CEO of Packet Design. “This is a great team with outstanding technology that is well placed to address the management challenges of today’s complex networks as well as the industry disruption that will be created by software defined networking.”
Packet Design is the leading provider of route analytics solutions for IP networks. Packet Design’s management software provides the intelligence needed to optimize network routing and performance in real time. The world’s largest service providers, mobile operators, cable and broadband providers, enterprises and government agencies use Packet Design products to improve the reliability, efficiency and predictability of their physical and virtual networks while maximizing the return on assets.
Lone Rock Technology Group (www.lonerock.com) is an operationally oriented investment firm focused on the enterprise software industry. Lone Rock specializes in acquiring or taking significant control positions in software companies that have an established market presence, proprietary technologies and can benefit from Lone Rock’s expertise, back-office resources and proven success in establishing growth-oriented operational excellence.
S3 Ventures (www.s3vc.com) is an earlier stage venture firm with $95 million under management. We are focused on information technology solutions that solve large business problems. We also invest in medical devices that improve the human condition. At S3 today, we primarily invest in the formative stages of a company and help talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. This can be a handful of team members who have a unique technology with the potential to be a category defining opportunity to a more defined company seeking to grow after significant engagement with customers and a market-tested offering. We partner with the team and help focus methodically on what it takes to build a successful company. Investment sizes start at several hundred thousand for a seed round, and move to several million or more for a traditional Series A or B financing.