Press Releases

Symphony Technology Group Offers Bullish Outlook for Software and Services Sectors

Private Equity Firm’s Portfolio Seeing Strong Demand for Services, Data Intelligence and Predictive Analytics Services

Symphony Technology Group (STG), a strategic long-term investment private equity firm, today issued a bullish outlook on the software and services sectors and a performance update on its portfolio holdings.

As of April 27, 2010, STG’s portfolio companies include: Capco; Symphony Information Resources Inc.; MSC.Software; Symphony Services; Teleca; Netik; Lawson Software; and Aldata. Combined, these companies have over $2 billion in revenue and 15,000 employees worldwide. STG sold Symphony Marketing Solutions (SMS) to Genpact (NYSE: G) on Feb. 3, 2010.

"STG's mission is to serve as a catalyst to building great companies over a long-term horizon and we, therefore, invest in companies where we can accelerate their potential that will produce strong ROI in the years ahead,” said STG Chairman and CEO Romesh Wadhwani. “At this period in time, businesses across all industries are investing in transformative services and solutions as they adapt to a new economic reality. STG’s portfolio companies are benefiting from this trend as they help businesses optimize their operating models, data intelligence, infrastructure requirements and marketing performance to increase market share and margins.

All of STG’s portfolio companies share a common DNA -- exceptional talent, breakthrough client value and commitment to innovation. STG’s role is to unlock this intrinsic value by working closely with our portfolio companies’ management teams so they sustain best-in-class business performance, strong revenue growth and profitability.”

STG reported on the performance of several of its portfolio companies:

Capco is a market leader in lasting, transformative services to the highly complex, global market of financial services. The company specializes in strategy, transformation and technology services in capital markets, wealth & investment management, banking, risk, finance & compliance and information technology. Capco is well ahead of both its top and bottom line plan and forecasts over $275 million in annualized revenue by the end of 2010, which represents approximately 90%+ organic growth. The company is engaged by the top executives of 75 of the world’s 100 largest financial institutions and serves the market with a unique and differentiated operating model based on deep industry experience, streamlined solutions and accelerators, efficient operations and a culture that emphasizes client service and performance instead of the traditional tenure-based model. Capco’s extraordinary client success is the result of its ability to attract and retain the best financial services professionals who average more than 14 years of industry and consulting experience, significantly higher than the industry average. This enables Capco to deliver growth-driving strategies, transformative solutions, technology innovation and large operational efficiencies to clients. The company expects to add over 1,000 world class professionals in the next two years, while managing attrition at a low rate.

“Capco has been STG’s best performing portfolio company in the past year and our clients are increasingly turning to Capco’s world class expertise, deep industry experience and unique global model to address their most challenging business needs,” said Romesh Wadhwani, chairman and CEO, Symphony Technology Group. “Consulting in complex industries like financial services is no longer a generalists’ business. Financial institutions want consultants and technology specialists with deep vertical expertise in their sector and the world’s best known financial services brands are turning to Capco for its domain experience and its differentiated ability to transform their businesses strategically, operationally and technologically.”

Symphony IRI Group (Formerly Information Resources, Inc.)
Symphony IRI Group is the innovation leader for insights in the Retail & CPG value chain. The recent recession significantly re-shaped consumers’ purchase behavior criteria and consumption patterns, possibly for many years to come. As economic uncertainty remains intact, we expect to see marketers increase their investment in data and analytics, and these investments have been reflected in a strong 2009 performance with record profitability for Symphony IRI Group. Formerly known as Information Resources, Inc. or “IRI”, the company was re-branded in March 2010 as SymphonyIRI Group to embrace the company’s evolution into predictive automated analytics, technology platforms and strategic consulting services. The company is recruiting consultants and subject matter experts with deep experience in these areas. In 2010, SymphonyIRI is introducing a new suite of innovative solutions for consumer package goods, retail and healthcare companies that translate deep, highly-nuanced business insights into transformational strategies, higher performance and ROI. The company just introduced Target Advantage®, a solution designed to provide retailers with deeper shopper segmentation and targeting solutions to drive improved marketing effectiveness at the individual household and retailer levels.

MSC Software, with over $200M in revenue, is a global leader in software simulation solutions that helps companies accelerate product design and save substantial cost. MSC works with leading companies throughout the product design process from concept to validation and testing by simulating real-world behaviors of products and systems. MSC’s offerings range from individual simulation tools to enterprise simulation management systems, enabling individual engineers to advance their designs and corporations to accelerate innovation and eliminate physical prototypes. Major customers are in aerospace, automotive, defense, heavy machinery, electronics, consumer products, biomedical, shipbuilding, and rail industries, as well as leading universities and research centers.

Symphony Technology Group completed the $390M take-private investment in MSC in October 2009. Since then, STG's leadership team, in partnership with MSC's management, has made significant progress in transforming the business by recruiting key leadership, increasing focus on core simulation products, redeploying resources, and transforming business processes. The pace of product releases has increased substantially and profitability is up 100%.

Symphony Services Corporation (SSC)
Symphony Services is the market leader in delivering Engineering Outcomes to Independent Software Vendors (ISVs) and Global Enterprises, and is projecting strong growth into 2010 behind a strengthened leadership team. Engineering Outcome certainty offerings from SSC blend people process and IP to deliver contracted business outcomes across product lifecycles and in recent quarters Symphony Service’s has made strong progress in broadening its reach with traction with customers in embedded systems, virtual engineering for aerospace and automotive, and analytic solutions across the supply chain.

Teleca is the worldwide leader in providing software development solutions for mobile devices. With rapid and disruptive innovation in the mobile device industry, major players are investing heavily in expertise to create compelling mobile solutions for consumers. As the market leader, Teleca is growing quickly behind this tailwind of demand with a global sales and services delivery platform to help customers in mobile devices, automotive, and media create compelling experiences for their customers – and is on track to have a record growth year in 2010 while investing for the future with greatly expanded capabilities in Asia, the US, and India.

About Symphony Technology Group
Symphony Technology Group (STG) is a strategic private equity firm with the mission of investing in and building great software and services companies. In addition to capital, STG provides transformative expertise to enable its companies to deliver maximum value to their clients to retain and attract the best talent and to achieve best in class business performance. All STG companies are expected to grow through innovation. STG's current portfolio consists of 8 global companies.