The Carlyle Group Invests in NetMotion

Award-Winning International Provider of Mobile Performance Management Software Solutions Will Target Growth and Expansion

London, UK/New York, US- Global alternative asset manager The Carlyle Group (NASDAQ:CG) today announced it has signed a binding agreement with Clearlake Capital Group to acquire NetMotion Wireless, Inc., a provider of mobile performance management software designed to manage, optimize, accelerate, and secure all traffic to mobile devices across any network, application or operating system.

NetMotion products, which have won over 30 industry awards for outstanding technology, are used by more than 3,500 organizations globally across multiple industries including utilities, healthcare, telecommunications, public safety, government, insurance and manufacturing. Their solutions significantly improve the mobile end-user experience and empower IT with a software-defined mobility platform to manage their mobile enterprise.

Based in Seattle, WA, with additional offices in North America, Europe and Japan, NetMotion was formed in 2001 and now employs 114 people globally. NetMotion has been ranked by Deloitte LLP as one of the fastest growing wireless technology companies in North America, as well as previously recognized as one of Washington's 100 Best Companies to Work For. 

Equity for the transaction comes from two Carlyle funds; Carlyle Europe Technology Partners III, a €657m Carlyle fund focused on European technology, media and telecommunications (TMT) companies, and Carlyle U.S. Equity Opportunity Fund II L.P., a $2.4 billion that targets U.S. middle market buyout investments.

Christopher Kenessey, Chief Executive Officer of NetMotion, commented, “We’re grateful for the partnership with Clearlake and excited to start our next phase of growth with Carlyle, supported by their global presence and wealth of experience in the software and mobile sectors. This acquisition is also recognition of the 15 years of dedicated work from our employees to deliver world-class mobile solutions. Led by Joe Savarese, our Chief Technology Officer and one of the original founders, we have an ambitious, innovative product roadmap for the future. Working with the global Carlyle team, we can make these plans a reality.”

Michael Wand, Managing Director at The Carlyle Group and Head of the Carlyle Europe Technology Partners team, said: “Having worked with the CEO Christopher Kenessey before at a former portfolio company, we are confident that he and his team will be able to develop NetMotion into a next-generation mobile performance management solution provider with global scale. This is a true One Carlyle deal, with two Carlyle funds supporting the transatlantic expansion growth plans of a mid-sized US technology business that was looking for a partner with industry expertise and worldwide reach. One of the key growth regions for Netmotion is Europe where the company has early customer successes and a market ready for disruption.”

Brooke Coburn, Managing Director and Co-head of the U.S. middle market investment team, said, “We are delighted to partner with Christopher Kenessey and his team as we work together to grow the NetMotion platform. We see real opportunity to help this business scale internationally, capitalizing on the continuing global increase in mobile performance challenges in the enterprise.”

The Carlyle Group has a successful track record of investing in high growth software companies including previous investments by Carlyle Europe Technology Partners in international software companies such as The Foundry, FRS Global, Personal & Informatik, Metrologic and UC4.  Carlyle’s U.S. middle market team has also invested in various software companies including ECi Software Solutions, a provider of enterprise resource planning and business applications; Coalfire, a provider of cyber-risk and compliance services; Bonotel LLC, an aggregator and wholesale distributor of branded and boutique luxury hotel rooms to international wholesale clients; and Worldstrides, a provider of educational student travel programs.

NetMotion continues Carlyle’s history of partnering with emerging sector leaders with strong management teams, and customer relationships with differentiated intellectual property that are transitioning into the next stage of their growth.

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About NetMotion
NetMotion Wireless mobile performance management software accelerates business-critical applications, hybrid networks and mobile devices. Thousands of enterprises around the world depend on the company’s solutions to deliver network traffic optimization, adaptive policy control, mobile user experience management and secure access for their mobile workforces. NetMotion gives IT decision-makers robust intelligence and control over devices, applications and networks to increase operational efficiencies and end-user productivity.  NetMotion has received numerous awards for its technology and customer support. The company consistently receives an impressive customer satisfaction Net Promoter Score (NPS) of 91, significantly exceeding NPS averages in the technology and telecom industries. The company is headquartered in Seattle, Washington. Visit www.netmotionwireless.com.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 127 funds and 164 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents.

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