Israeli private equity fund Fortissimo Capital announced today that Insight Partners is investing $140 million in its portfolio company Incredibuild, which provides a software development acceleration platform. The announcement said that a significant part of the $140 million investment by Insight, will acquire shares from Fortissimo and the remainder will be invested in the company to speed up expansion of US operations and further develop the company's technology.
Fortissimo acquired over 90% of Incredibuild's shares in 2018 for $30 million from its founders Uri Mishol and Uri Shaham. No precise details of the stake being sold by Fortissimo have been disclosed but Insight will become the largest shareholder in Incredibuild. Market sources believe that Incredibuild is now worth $200 million, meaning a nearly seven-fold increase since Fortissimo acquired its stake.
Incredibuild was founded in 2002 and grew over the years without any external financing. The company has grown rapidly in recent years from 25 to 100 employees and has changed its model from one-time payments to SaaS annual subscriptions. Senior management has been changed with former NSO co-president Tami Mazel Shachar appointed as CEO.
The investment by Insight Partners will help expand Incredibuild’s US operations to meet the rapidly growing demand for its software development acceleration technology. The company, which has been profitable from its inception, has seen a 55% increase in revenue in the past year as businesses seek the ability to build and ship software versions faster without compromising on quality.
Mazel Shachar said, "In fiercely competitive markets, top quality frequent releases are vital. With the new funding, Incredibuild is poised to expand the market opportunity, enabling companies to maintain their competitive edge. With cloud adoption being paramount, we plan to further scale and evolve our software development acceleration platform for development teams and release managers in verticals such as finance, gaming, and the growing AR and VR markets."
Fortissimo Capital partner and Incredibuild board member Yoav Hineman said, "Fortissimo acquired Incredibuild in 2018 with belief in the enormous potential of distributed processing. The investment by Insight Partners is a great milestone in delivering unparalleled acceleration for software developers. Fortissimo remains with a significant holding in the company and Insight’s investment will further expedite the company’s growth by expanding into additional areas of DevOps by leveraging distributed processing."
Insight Partners managing director Teddie Wardi said, "We firmly believe that Incredibuild has built a crucial technology for any business that wants to develop better software, radically faster. With our long history of investing in the development ecosystem, we are confident that Incredibuild will continue to innovate and build upon their recent momentum."
Published by Globes, Israel business news - en.globes.co.il - on March 17, 2021
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