AOTMP Gives Its Take on Riverside Partners’ Acquisition of Calero
The Ownership Change Differs from Ongoing Vendor Consolidation in the Telecom Management Sector
Calero Software has announced a change of ownership from Clearlake Capital Group to Riverside Partners and members of the Calero management team, signaling a different financial approach amid ongoing consolidation in the telecom management sector.
AOTMP views the move as positive, and as further evidence of mutual commitment to Calero’s business and customers. Calero has been pursuing financial advancement strategies and Riverside Partners holds a reputation for supporting its portfolio companies’ growth.
“Taking a long-term perspective is a critical piece of our philosophy and we do not invest based on short-term trends or quick turnarounds,” the Boston-based Riverside Partners notes on its website. “Our focus is on the fundamentals: market growth, market share, competitive advantages and business strategy.”
AOTMP expects Riverside Partners will allow Calero to renew, and continue, its focus on funding people, processes, technology and strategy. The vendor is known for prioritizing technology development and service delivery for customer benefit. With continued commitment from Calero’s executive team on technology and customer satisfaction, along with the Riverside Partners investment, Calero will have the resources to continue its move toward becoming a leader in the space.
Calero’s ownership change comes as the telecom management industry experiences a wave of M&A and roll-ups. Calero’s strategy should show that organic growth can prove as effective as either of those approaches, even though Calero itself formed out of a roll-up. In addition, this event may spur further industry consolidation considering Riverside Partners’ desire to grow its portfolio of companies, and the potential for other strategic acquisitions that would supplement existing Calero resources and capabilities.
In addition, the Calero management team’s investment alongside that of Riverside Partners is positive, signaling mutual dedication to the success of the company. Together, this should reduce any enterprise uncertainty about Calero – Calero is ensuring its stability by keeping strategy and vision on point through Riverside Partners.
Clearlake formed Calero from the combination of Movero, Pinnacle and Veramark in late 2013. Riverside Partners’ other technology holdings include R&D Altanova, Loftware, Thinklogical and FirstLight Fiber.