Solidifying a Major Growth Investment to Accelerate Public Safety and Security

The Situation

Kaseware reached a pivotal moment in its growth trajectory where it required additional capital and strategic guidance to accelerate expansion. Kaseware was at a point where it needed a partner to provide capital that would accelerate growth, operating experience to help widen the moat against competitors and continue improving on its infrastructure, and execute a robust growth strategy to solidify its leadership in the industry. Moreover, Kaseware sought to provide liquidity to its existing shareholders while maintaining rapid growth.

This inflection point led Kaseware’s shareholders to begin a search to identify the right investment banking partner to guide them through this critical stage. After interviewing multiple groups, Kaseware selected Ascend due to its track record of closing deals in the space, knowing the market better than other banks, emphasizing positioning, and taking a very technical yet strategic approach to running a process.

The Strategy

Recognizing the strategic imperative and growth potential of Kaseware, Ascend orchestrated a comprehensive approach to preparing the company and conducting a process to find the right investment partner. Based on market conditions, Ascend knew Kaseware was a premier asset, making it imperative to develop a sense of scarcity throughout a process to maximize value and optimize structure. The company was outperforming relative to peers, demonstrating 80-120% year-over-year growth, and there were numerous opportunities for the right partner to significantly scale the business over the next few years.

Given Kaseware’s unique complexion, involving public and private sector customers, Ascend cast a wide net focusing on six types of groups — (i) PE and growth equity firms with a software focus, especially those with current or prior investing experience in the space; (ii) GovTech and Public Safety strategics with a core focus or immediate adjacent centered on local law enforcement, fusion centers, state agencies; (iii) GovCon organizations with an emphasis on Federal government, defense, and intelligence work, (iv) Cybersecurity software firms that focused on the same ICP and use case across the security stack; and (v) International security and safety players interested in getting a foothold in the U.S., as well as expanding their reach globally through a premier software offering.

The Execution

Recognizing the crucial role of casting vision around growth for each prospective investor group, Ascend work hand-in-hand with the Kaseware team to develop a comprehensive bottoms-up operating model with defensible projections, KPI dashboard with customer economics, tailored marketing materials for specific groups, and key positioning points related to market positioning, product development, and operational enhancement. Ascend was hyper-focused on showcasing the company’s unique value proposition.

The strategy generated a significant amount of interest with approximately twenty-five indications of interest and multiple letters of intent. Moreover, it created an environment that was highly competitive and provided optionality to the Kaseware shareholders.

The Results

While Kaseware was able to secure multiple offers, The Riverside Company was ultimately the best fit at every level, especially with their deep expertise and experience scaling businesses across law enforcement, public safety, higher education, and corporate markets. Moreover, Riverside understood the sales motion, customer dynamics, and challenges within Kaseware’s ecosystem, having demonstrated the ability to successfully navigate challenges and scale organizations to become category leaders. Riverside’s team set themselves apart from other parties through their approach and track record. In the end, Riverside submitted an offer that addressed everything the Kaseware shareholders were seeking, and Riverside was highly collaborative all the way through closing, which was approximately 60 days from signing of a letter of intent. Kaseware’s partnership with Riverside will enable the company to reach new heights in its efforts to bring greater safety and security to communities and organizations.

The Ascend Advantage

Our deep sector knowledge and capabilities played a pivotal role in securing an optimal partnership for Kaseware. The transaction not only met Kaseware’s immediate needs but also positioned the company for sustained growth and leadership in its target markets. Through a collaborative and efficient process, we successfully facilitated a transaction that aligned with Kaseware’s strategic objectives and shareholder expectations, ensuring a great outcome for all parties involved.