Technology Crossover Ventures (TCV) Backs Sitecore

TCV today announced it has acquired a significant minority equity position in Sitecore, the Danish Web Content Management (WCM) software business. Sitecore is a rapidly growing, highly profitable software business with a unique position at the center of the convergence between WCM, Web Analytics and Email marketing. Sitecore is now likely to continue building its platform, mostly organically and seek an IPO down the road.

This convergence which is resulting in a new sector – Web Experience Management has been led primarily by companies pursuing M&A to combine disparate technologies – IBM acquired Coremetrics and Unica; Adobe acquired Omniture and Day Software; and Terradata acquired Apprimo. While this would be viewed as daunting competition for many, Sitecore’s management team fervently believes in their singular platform approach and establishing WCM as the core of the WEM platform. Because Marketing departments continue to require more accurate and useful information to make decisions and provide enhanced multi-channel customer service, we suspect we are still at the forefront of the WEM wave. We expect to see continued M&A activity as these sectors converge but will continue to be quite interested to see how the company in Denmark progresses with its new financial partner at its side.