Sapphire Ventures, the VC firm spun out of software company SAP, is set to exit US-based data analytics platform Recommind following the company’s acquisition by enterprise software producer OpenText.
The transaction is worth approximately $163m and is expected to close in the first fiscal quarter of 2017.
Recommind’s technology enables the retrieval of information from large datasets. The company’s software-as-a-service offerings include products to analyse contracts, to access enterprise-wide information and to review and analyse documents.
The technology is based on research at Massachusetts Institute of Technology and University of California, Berkeley. The company was set up in 2000, according to Recommind’s website, though a regulatory filing reveals an incorporation date of 2007.
OpenText will integrate Recommind’s technology into its own offering and expects the products to generate $70m to $80m in revenues, boost OpenText’s earnings and be operating on the corporate’s model within 12 months of the acquisition closing.
Sapphire Ventures invested $15m in a series C round for Recommind in 2013. Kennet Capital participated in a $7.5m series B round in 2008, while details about the company’s previous funding have not been disclosed.