Francisco Partners to acquire Jama Software for $1.2bn to fuel expansion

In a landmark move within the software industry, Jama Software, a leader in requirements management and traceability solutions, has announced a definitive agreement under which Francisco Partners will acquire the company. The transaction, valued at $1.2 billion, will see Jama Software transition from its current shareholders, including Insight Partners and Madrona Ventures, to new ownership under Francisco Partners. Marc Osofsky, CEO of Jama Software, will continue to lead the company, further investing personally in its future growth.

This acquisition signifies a pivotal moment for Jama Software, known for its rapid market ascension and leadership in Requirements Management & Traceability. With high customer satisfaction ratings, NPS scores, and a strong track record in SaaS scale, security (SOC2 compliance), usability, and performance, Jama Software has set the industry standard in software development and process improvement.

Marc Osofsky, CEO of Jama Software, expressed excitement about the new partnership, stating, “We are thrilled to work with Francisco Partners and leverage their expertise as we further accelerate our rapid expansion across enterprises, industries, and continents.” He also extended gratitude to Insight Partners for their support in Jama Software’s growth journey over the past six years.

Francisco Partners, a global investment firm that specializes in partnering with technology businesses, recognizes the transformative potential of Jama Software. “The engineering management market is in the early stages of a fundamental transformation which Jama Software is at the forefront of. We are ecstatic to be partnering with Marc and his team in continuing to execute on their industry-leading vision and strategy,” said Petri Oksanen and Mario Razzini, Partners at Francisco Partners.

The sentiment of successful partnership and future growth was echoed by Richard Wells, Managing Director at Insight Partners, who praised Jama Software’s market leadership and its capacity to deliver exceptional value to customers globally. As Jama Software embarks on this new chapter, the acquisition by Francisco Partners is a testament to the company’s success and strategic position within the software development landscape.

The investment agreement is subject to customary closing conditions, with Evercore serving as the exclusive financial advisor to Jama Software and Insight Partners, and J.P. Morgan Securities LLC advising Francisco Partners.

This acquisition not only marks a significant milestone for Jama Software but also highlights the dynamic nature of the software development industry, where strategic partnerships and investments fuel innovation, growth, and the realization of visionary objectives.