Francisco Partners: A History of Strategic Technology Investment
Founded in August 1999 in Menlo Park, California, Francisco Partners emerged during the rise of dedicated technology buyout firms. A buyout firm is a private equity entity that acquires a controlling interest in a company to improve its operations and eventually sell it for a profit. The firm was established by a group of experienced investors: Sanford Robertson, Dipanjan Deb, David Stanton, Benjamin Ball, and Neil Garfinkel.
The founding team brought diverse expertise from various private equity backgrounds. Sanford Robertson previously founded the technology-focused investment bank Robertson Stephens, while Dipanjan Deb joined the firm from TPG Capital. From its inception, Francisco Partners focused on high-value acquisitions across the technology spectrum, ranging from semiconductors to enterprise software.
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Key Facts
- Founded: August 1999 in Menlo Park, California.
- Specialization: Exclusive investment in technology companies across semiconductors, capital equipment, and electronics.
- Major Funds: Includes the Agility funds for smaller deals and FP Credit Partners for opportunistic credit.
- Notable Acquisitions: Includes VeriFone, LogMeIn, and New Relic.
- Industry Recognition: Named Private Equity Firm of the Year by Mergers & Acquisitions in 2017.
Early Growth and Expansion (1999–2011)
The firm's early years were marked by aggressive acquisitions of industrial and technology units. In 2000, Francisco Partners paid $375 million in cash for 90% of AMD's communications products division. This was followed in 2002 by an $800 million investment to acquire 90% of Global eXchange Services from General Electric.
By 2004, the firm's portfolio had grown to over 30 active companies. Key moves during this period included the purchase of NPTest (a semiconductor-testing unit of Schlumberger) in 2003 and Smart Modular from Solectron Corporation in 2004. The firm also expanded into software and healthcare, owning RedPrairie from 2005 to 2010 and acquiring API Healthcare in 2008.
Scaling the Portfolio (2012–2015)
By 2012, Francisco Partners managed approximately $7 billion in capital. The firm focused on semiconductors, electronics components, and capital equipment. During this phase, they acquired software companies such as Ichor, Plex Systems, and Kewill.
The firm also ventured into e-commerce and cybersecurity. In 2013, they acquired Avangate and invested in Paymetric. In 2014, the firm took a majority stake in the NSO Group for $120 million and invested in CoverMyMeds. By 2015, the firm raised $2.9 billion for its fourth fund and acquired Procera Networks for $240 million and ClickSoftware Technologies for $438 million.
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Strategic Diversification and Market Leadership (2016–2019)
In 2016, Francisco Partners partnered with Elliott Management to acquire SonicWall and Quest Software from Dell. This period saw the launch of the Agility fund, which raised $600 million to target smaller technology deals. This fund enabled investments in companies like Dynamo Software, Pet Circle, and Discovery Education.
The firm's activity peaked with several high-profile exits and acquisitions. In 2017, they sold CoverMyMeds to McKesson Corporation and acquired Sandvine for $444 million. In 2018, the firm made a massive $3.4 billion purchase of VeriFone and acquired LegalZoom and Renaissance Learning. During this time, Blackstone Inc.'s Strategic Capital Group and Goldman Sachs' Petershill program acquired minority stakes in Francisco Partners.
Modern Era and Large-Scale Acquisitions (2020–2025)
The turn of the decade saw a massive increase in capital. In June 2020, the firm closed three funds totaling $9.7 billion: $7.45 billion for VI LP, $1.5 billion for Agility II, and $750 million for Francisco Partners Credit.
Major transactions during this period include:
- LogMeIn: Acquired for $4.3 billion in 2020 alongside Evergreen Coast Capital.
- Boomi: Acquired from Dell for $4 billion in 2021 in partnership with TPG Capital.
- Watson Health Assets: Acquired from IBM for $1 billion in 2022.
- New Relic: Acquired for $6.5 billion in 2023 with TPG Inc.
- The Weather Company: Acquired from IBM for $1.1 billion, finalized in 2024.
Recent activity continues with the acquisition of Jama Software for $1.2 billion (2024), the purchase of AdvancedMD for $1.13 billion (2024), and the acquisition of Jamf for approximately $2.2 billion in 2025. In January 2025, the firm closed its FP Credit Partners III fund at $3.3 billion.
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Investment Summary
| Year | Entity/Fund | Value/Amount | Action |
|---|---|---|---|
| 2018 | VeriFone | $3.4 Billion | Acquisition |
| 2020 | LogMeIn | $4.3 Billion | Acquisition |
| 2021 | Boomi | $4 Billion | Acquisition |
| 2022 | Fund VII LP | $13.5 Billion | Fundraising |
| 2023 | New Relic | $6.5 Billion | Acquisition |
| 2025 | Jamf | $2.2 Billion | Acquisition |
Frequently Asked Questions
What is the primary investment focus of Francisco Partners?
Francisco Partners invests exclusively in technology companies across various sectors, including semiconductors, capital equipment, electronics components, and enterprise software.
What is the Agility fund?
The Agility fund is a specialized fund launched by Francisco Partners to focus on smaller technology deals, complementing their larger buyout strategies.
Which major companies has Francisco Partners acquired recently?
Recent major acquisitions include New Relic ($6.5 billion), The Weather Company ($1.1 billion), Jamf ($2.2 billion), and Jama Software ($1.2 billion).
Who are the founders of Francisco Partners?
The firm was founded by Sanford Robertson, Dipanjan Deb, David Stanton, Benjamin Ball, and Neil Garfinkel.
Does Francisco Partners manage credit funds?
Yes, the firm manages credit funds, including the FP Credit Partners series, with the third fund (FP Credit Partners III) closing at $3.3 billion in January 2025.