Goldman Sachs Group Inc. (NYSE: GS) and private equity firm KKR acquired minority stake in OutSystems, a platform that allows developers to write software with little code, in a deal that values the company at over $1 billion.
The firms raised $360 million in an investment round to boost the business and to further develop research into software automation. The financing will let the company expand in markets in the United States, Britain, Germany, Japan and otherwise, it said. OutSystems is a growing tech company leading its field by allows software developers to build web and mobile applications that has employed over 700 people operating in 54 countries.
The deal has made OutSystems the second Portugese technology company to be valued at over $1 billion, with the first being Farfetch, an e-commerce luxury clothing retailer considering an IPO.
The Chief Executive of OutSystems, Paulo Rosado, expects the funding to fuel the company’s potential for growth. “We’re seeing tremendous growth basically everywhere around the globe,” Rosado told Reuters. “In general this funding, together with the financial situation of the company, allows us to support all the growth in all the regions.”
Goldman Sachs is a large investor in technology company and it’s a recently large deal compared to its average $80 million investments in European tech companies, according to Financial Times.
This marks KKR’s largest investment in its growth equity fund. The director at KKR, Stephen Shanley, said it’s the largest investment for the equity fund because OutSystems showed a combination of attributes including fast revenue growth, efficient business model and global reach. They see the long-term potential for the company to reach over 5-10 billion dollars of worth.