July 15, 2020
AI (Artificial Intelligence), SaaS, Software, Technology
Mergers and Acquisitions
GCA Advises SocialChorus on Its Majority Recapitalization by Sumeru Equity Partners
GCA is pleased to announce our client, SocialChorus, the leader in workforce communications SaaS, today announced that Sumeru Equity Partners (SEP), a growth-focused technology investment firm, along with existing investors, has led a $100 million investment in the company to accelerate growth and product innovation.
SocialChorus is the leading workforce communications platform that enables organizations to accelerate and accomplish their business initiatives by reaching, aligning and mobilizing every worker. The company’s platform enables enterprises to react quickly to change, align their workers and give them the right information, at the right time, in the right place, to achieve their business objectives.
Sumeru Equity Partners is a technology-focused private equity firm that invests in middle market companies across software, technology-enabled services and hardware.
The investment will enable SocialChorus to continue its significant momentum of 50% year-over-year growth in both 2018 and 2019, which has accelerated in 2020. Hundreds of customers use SocialChorus today — including 10 of the Fortune 50 — to power their workforce communications, reaching millions of workers across 165 countries with their most important company information from the world’s most advanced communications platform. With SocialChorus, enterprises can create and publish communications once in the platform, automatically send that content to any employee channel including mobile apps, intranets, email and more, and measure the impact across channels.
As part of the investment, majority shareholder SEP will add principals John Brennan, George Kadifa and Mark Haller to SocialChorus’ board of directors. “SEP has long followed the development of the workforce communications market, in which SocialChorus has been a leader and pioneer,” said Brennan, Kadifa and Haller. “Due to rapid shifts in the workplace, which have only accelerated with COVID-19, we believe SocialChorus’ next-generation software will be an invaluable resource for its customers. We are highly enthusiastic about partnering with Gary and the SocialChorus team to lead a new chapter of continued growth.”
“Digital transformation is reliant on human transformation, which can only happen if an organization's communication infrastructure enables them to reach, align and mobilize all of their people. This is easy to say and difficult to do,” said Gary Nakamura, SocialChorus CEO and board director. “At SocialChorus, we are excited to partner with SEP to expand our market-leading product innovation, customer success and go-to-market strategies to meet the needs of today’s global enterprises.”
GCA acted as exclusive financial advisor to SocialChorus in connection with this transaction. Additional terms of the transaction were not disclosed.