Business transaction management software maker continues to attract investors.
OpTier this week landed more than $63 million in new funds to augment development of its business transaction management software and promote company growth, potentially via acquisition.
OpTier, founded in December 2002, closed a fourth round of funding totaling $47.5 million from new investors Index Ventures and Morgan Stanley. Existing investors Pitango Venture Capital, Carmel Ventures, Lightspeed Venture Partners and Gemini Israel Funds also continued. Strategic partner Cisco, which in July 2007 invested an undisclosed sum in OpTier, also contributed to this round of funding.
Separately, OpTier announced it secured a $15 million credit line with Plenus Venture Lending, an Israel equity-based debt fund that provides credit facilities to revenue stage technology companies. The funds will be put to use to “aggressively pursue plans to enhance and broaden the company’s offerings in the business transaction management market via acquisition and organic development,” a company statement reads.
OpTier’s flagship software CoreFirst, which debuted in December 2005, monitors application transactions to ensure business services perform as expected. The software, which competes with products from CA’s Wily Technology and HP’s Mercury Interactive, was recently upgraded to be able to detect ill-performing transactions as they happen to prevent service disruptions before the end user is impacted. (Compare application performance monitoring products.)
Financial industry watchers consider the software addresses a need for customers that must maintain high success transaction rates for business-critical applications.
“OpTier addresses the critical need for increased performance and high availability from technology services in today’s competitive markets,” said Thomas Mosimann, executive director with Morgan Stanley. “Morgan Stanley seeks to partner with exactly these kinds of companies that possess a combination of a differentiated offering, a huge addressable market and a strong management team.”
OpTier in June 2007 raised $15 million in a third round of funding from Gemini Israel Funds and Pitango Venture Capital, Carmel Ventures and Lightspeed Venture Partners. The company had garnered more than $25 million in its two previous rounds of $16 million and about $9.5 million.
