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Vista Equity Partners, the Texas-based investment firm announced the sale of its majority stake in Zapproved, an e-discovery software provider, to Leeds Equity Partners portfolio company Exterro, a provider of Legal GRC (Governance, Risk and Compliance ) software. 

It was asserted that Vista will possess a minority stake in the go-forward business but the companies did not disclose the financial terms of the transaction. 

Zapproved and Vista relationship. 

On May 2017 Zapproved confirmed that the company has received a strategic investment from Vista Equity Partners to stimulate its growth in the e-discovery software market. 

And forming a strong relationship, the companies together established category leadership through product expansion, enhanced customer success, and investment in go-to-market efforts. Through Vista’s partnership, Zapproved experienced substantial growth, twice indexing on Deloitte’s Technology Fast 500™ list. 

Rachel Arnold, Senior Managing Director and Co-Head of Vista’s Endeavor Fund stated that Founder relationships have motivated Vista’s investment strategies for over two decades. 

And their partnership with the Founder and CEO of Zapproved, Monica Enand, and the Zapproved team over the last couple of years has been productive – the business has evolved materially while prioritizing world-class customer success, product innovation, forward-thinking and maintaining the Company’s position as a preferred employer in the Portland, Oregon community. 

Arnold also added that they are particularly proud of the fact that Zapproved has been a leader in their portfolio for promoting diversity and inclusion as part of their operating culture. He stated that they are thankful to Monica for her authentic and enthusiastic leadership and look forward to the Company’s success in this next chapter with Exterro. 

Leveraging the Vista ecosystem, Zapproved found the right candidates to develop its executive leadership team while making great strides to facilitate a diverse and inclusive workforce. 

In 2021, Enand was nominated for Vista’s first-ever portfolio DE&I (Diversity, equity, and inclusion) award and, at the time of sale to Exterro, most of Zapproved’s board was constituted of women and people of color. 

About the acquisition of Zapproved by Exterro

The acquisition of Zapproved by Exterro helps the company develop its data governance, risk, and compliance offerings for customers, which include corporate legal departments and law firms. 

Exterro is now looking ahead to a potential 2024 IPO. Although Bobby Balachandran, Exterro’s CEO and president has formerly said Exterro was eyeing an initial public offering as early as 2023, he said the company is now possibly looking at 2024 due to existing market volatility. 

He said that they believe in this market condition, they will continue to grow, and then they’ll wait for the right timing before moving ahead with the IPO. 

Combining Exterro’s innovation engine with Zapproved’s world-class customer experience will bring the best of the industry together in one effective and easy-to-use solution that will fully address the crucial business challenges facing customers today. So this alliance in the long run is going to be very beneficial to clients. 

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