"If we didn't join Amazon, we'd be left behind," Ziegler says. But Ziegler is hoping that the company has more stories left in it like its work with Cal Index, the multi-million user health insurance exchange that runs on AWS and was built with Logicworks' help. "As of today, I no long have to question my decisions to stay," he jokes. Logicworks chose Pamplona out of 15 formal bids because the firm promised to support Ziegler and his team moving forward into what the executive sees as a cloud "land grab" that's still in its early stages.įor Ziegler, the investment and partial exit (Burden and management will keep a stake) is in some ways the culmination of a fifteen year journey that began when he took an entry-level role with Logicworks in 2001. The company had raised just $4.6 million from private equity investors and $12.5 million in debt, meaning that Burden and those outside investors (and management who have received shares) are all seeing a strong return.
#Logicworks 5 amazon software
The investment by Pamplona Capital is a partial exit that values Logicworks' cloud management software at what amounts to a 5.4 x multiple. At that point, says Ziegler, the company of 100 people looked into its options for investment and creating liquidity for its shareholders. Big businesses in the hyper-competitive cloud category took notice, with more than a dozen reaching out with interest in acquiring Logicworks' software. Adding $25 million in revenue from AWS, Logicworks quadrupled its business. Customers include Veritas, Mass Mutual, PartyLite, Major League Soccer and Orion Health Group.įor founder Carter Burden and the executive team at Logicworks, that move has proven lucrative. So the company accepted the writing on the wall and yielded the field to the much larger AWS, focusing its resources on building a platform for customers to use to deploy and manage their infrastructure on Amazon. "Any feature you could compete on, within six weeks they'd have an improved one," Ziegler says. The company billed itself as providing superior managed services, but it wasn't enough. Logicworks started losing customers to Amazon as Ziegler took charge of the business in 2012.
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