Investment will accelerate fast-growing company’s momentum, signals Frontier’s continued commitment to achieving next-stage growth
NEWARK, Calif. — May 11, 2016—Frontier Capital, a Charlotte-based growth equity firm focused exclusively on software and technology-enabled business services companies, today announced a $31 million investment in Zephyr, one of the software industry’s fastest-growing providers of real-time, on-demand enterprise test management solutions.
Based in Newark, Calif., in the epicenter of the software industry, Zephyr provides more than 8,500 customers in over 100 countries with innovative applications, seamless integrations and unparalleled, real-time visibility into the quality and status of their software development projects. With additional operations in London and Bangalore, the company has more than doubled its customer base in the past 12 months by helping companies like LG Electronics, Adobe, HSBC, Honda, Oracle, Citibank, Amex, GE, Starz and Hyundai drive down costs and bring higher quality software to market faster.
“With this investment, Zephyr is extremely well-positioned to gain an even larger share of the global market for software test management solutions,” said Frontier Capital Partner Joel Lanik, who will join the Zephyr board of directors along with Frontier Capital Principal Scott Hoch. “Equipping Zephyr with the resources to meet the demand for its best-in-class, agile test management products will allow the company to accelerate its growth while continuing to meet the needs of its customers, partners, employees and other stakeholders.”
Zephyr’s feature-rich products help more than a million users address today’s dynamic and global software test management needs across a variety of industries including finance, healthcare, media, automotive, IT services and enterprise software. Zephyr’s products are sold directly to the enterprise and through the Atlassian Marketplace. The $31 million investment from Frontier Capital will be used to fund key growth initiatives for the company like enhancing the product portfolio and scaling sales and marketing capabilities, according to Zephyr founder and CEO Samir Shah.
“Partnering with Frontier Capital will help us realize our potential by investing in the critical business functions that will fuel our growth,” said Shah. “Their business acumen and experience helping similar next-stage growth companies achieve their goals will be just as, if not more, valuable to us than the money they have invested. We are excited to have Frontier on board as an engaged partner and look forward to working with them to build a market leader.”
KPMG Corporate Finance served as exclusive financial advisor to Zephyr.
About Frontier Capital
Frontier Capital is a Charlotte-based growth equity firm focused exclusively on software and technology-enabled business services companies. Founded in 1999, Frontier partners with management teams that can benefit from capital to accelerate growth, fund acquisitions or generate shareholder liquidity. The firm makes minority and majority equity investments in high growth companies and has built an excellent track record of delivering returns to both investors and management partners. For more information, please visit frontiercapital.com.
Zephyr is a leading provider of on-demand enterprise test management solutions, offering innovative applications, seamless integrations and unparalleled, real-time visibility into the quality and status of software projects. Zephyr products are the fastest-growing agile test management products in the world, with more than 8,500 global customers in over 100 countries. Their feature-rich products address today’s dynamic and global needs across a variety of industries including finance, healthcare, media, automotive, IT services and enterprise software. Zephyr is headquartered in Newark, Calif., with offices in Europe and India. For more information, please visit www.getzephyr.com.
Barry Finkelstein for Frontier Capital
Francis Adanza for Zephyr