Advised Butterfly Software, a provider of Cloud-based data analysis and migration solutions, on its sale to IBM
Sep 2012
acquired by
  • Sector: Infrastructure Software & Cybersecurity; Systems & Deep Tech
  • Deal Type: Strategic Deals; Founder-led Businesses
  • Engagement type: Sellside
  • Size: <$200m
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Arma Partners is pleased to announce that it acted as the exclusive financial adviser to Butterfly Software Ltd. (“Butterfly”), a privately held data analysis and migration software company headquartered in Maidenhead, UK, on its sale to International Business Machines Corporation (NYSE:IBM)(“IBM”). Financial terms of the transaction were not disclosed. Butterfly will become part of IBM’s Software Group.

Butterfly offers storage planning software and storage migration tools, helping customers save storage space, operational time, IT budget and power consumption. IBM will use Butterfly to help clients find new ways to drive greater value from its storage software and hardware solutions.

This transaction, our 16th so far this year, demonstrates Arma Partners’ continued dominance in transatlantic Technology M&A. As our 6th transaction involving a SaaS / Cloud-based business model and our 8th “big data” transaction in 2012, it also illustrates our unique ability to deliver successful outcomes to cutting-edge technology leaders.

– Butterfly Software Ltd. (“Butterfly”) is a data analysis and migration software company

– It provides light-touch SaaS solutions that enable customers to analyse, visualise, and automatically migrate data held on-premise and in Cloud environments

– Butterfly has over 200 actively engaged customers globally, including the world’s leading IT infrastructure companies

– The business is headquartered in Maidenhead, UK

– IBM is one of the world’s leading technology companies, providing a wide range of software, hardware and IT services such as data and infrastructure management software, servers and storage systems and systems integration services

– IBM is listed on the NYSE with a market capitalisation of more than $200 billion

– It generated revenues of c. $107 billion in 2011 and employs c. 441,000 people

– Mobile explosion and proliferation of cloud computing is augmenting data volumes handled by existing storage infrastructure, increasing pressure on operators to meet demand, while minimising operating expenses, through acquisition of new hardware

– IBM was able to realise immediate synergies with Butterfly’s data analysis and migration solutions on the back of a successful relationship between Butterfly and IBM since 2008

– Butterfly’s solutions will be used to help clients find new ways to drive greater value from their storage software and hardware solutions going forward

– Arma Partners, working with Butterfly, used its expertise to provide invaluable guidance to Butterfly, including financial modelling, valuation analysis, exit planning and identification of potential acquirers amongst other services

– Arma Partners initiated contact with both strategic and financial investors, creating competitive tension and improving the valuation outcome for the Butterfly shareholders

– The transaction illustrates Arma Partners’ leadership in advising companies in the SaaS and Cloud infrastructure space, leveraging Arma’s deep domain expertise, understanding of the buyer universe and first class execution skills