Waltham-based Dynatrace, which provides monitoring services that allow companies to make sure their Web, mobile, and cloud applications are working correctly, is taking the road less traveled as a private technology company.
Founded in 2006 in Linz, Austria, the company moved its headquarters to outside of Boston when it was backed by Bain Capital. In 2011, it was acquired by Detroit-based Compuware Corp. Recently, Compuware was itself acquired by private equity firm Thoma Bravo for $2.5 billion. So now, Dynatrace is being spun back out as a private company that is part of the Thoma Bravo portfolio.
Amazingly, John Van Siclen, who was the chief executive at Dynatrace when it was initially acquired, and who became the general manager of Compuware APM (the name Dynatrace took in the interim), is being reinstated in the chief executive role — the same position he held a few years ago.
“It’s the same,” Van Siclen said, “It’s just ten times bigger and twelve times the revenue than it was when it was acquired.”
He’s right: Dynatrace isn’t just a small little subsidiary. With 5,800 customers, it’s one of the largest application performance management companies in the market, and sees itself as a direct competitor of New Relic, which went public last week. The company expects an 18 to 20 percent increase in its revenues over the next couple of years, which it believes could exceed $550 million.
“It’s worked out extremely well,” said Van Siclen. “We were $25 million in trailing 12-month revenue when Compuware acquired the company, with a little less than 200 employees. Today, we are over 1,500 people, in all corners of the planet, and we have $375 million in revenue.”
“That’s a big transition in three years,” he added.
What Dynatrace does to improve the performance of complex applications is analogous to the dashboard of a car. When something goes wrong, the dashboard notifies you; it’s the same for application performance management, which can tell organizations how things are working within their applications and provide information to better optimize the app’s performance.
If the company continues to grow at the pace it expects, it could end up becoming an out-of-nowhere IPO candidate in a few years time.