Four years after buying a majority stake in Boston Software, Century City-based Diversis Capital bought the rest of the company. Diversis agreed to pay $195 million in cash for Origo’s portion of Tempo Software. That’s less than 40%.
Taking into account book value and transaction costs, Reykjavik, Iceland-based Origo expects a profit of about $156 million from the sale, according to the company’s release.
Tempo sells its software through Atlassian, a Sydney, Australia-based developer of team collaboration and productivity software.
Ron Nayot, managing partner at Diversis Capital, said his firm initially invested in Tempo because it believed in the growth potential of an organization that brought high value to customers and the Atlassian ecosystem.
“Through our partnership with Origo, we see Tempo continue to deliver strong results and grow organically and inorganically,” Nayot said in a statement. “Now operating in more regions, categories and markets, we are excited to partner with Tempo CEO Mark Lorion and the entire Tempo team to drive the next phase of growth as the primary owner of Tempo Software.”
Origo CEO Jón Björnsson said in a statement: “The sale of a majority stake in Tempo to Diversis Capital in 2018 was a very good decision for Origo and exceeded expectations. Diversis joins me and Origo and Tempo’s leadership We have worked closely together to accomplish this important milestone. We wish the employees of Tempo and Diversis all the best and continue to grow.”
Lorion said Origo has been a valued business partner for Tempo since its early days, through its global expansion.
“I appreciate Origo’s support and am excited about Diversis’ additional investment to accelerate Tempo’s next phase of growth and product innovation,” Lorion said in a statement. “We’re changing the way teams plan and execute work, so everyone in the organization is working to provide the most impactful opportunities for their teams, clients and business.”
Founded in 2013, Diversis is a technology-focused private equity firm that has raised over $1 billion in funds.
Tempo was founded in 2007 as part of TM Software Iceland and spun off into an independent company in 2015.