Following close of the transaction, the new company, called Varicent Software, will relaunch and be led by original founder, Marc Altshuller.
The financial terms of the transaction – which is subject to customary closing conditions, is expected to close in the fourth quarter of 2019. Derek Schoettle, Operating Partner at Great Hill, will join Varicent’s board.
Founded in 2005, Varicent provides an incentive compensation and sales performance software platform. IBM invested to develop the technology that has been recognized as a leader in Gartner’s Magic Quadrant for Sales Performance Management for six consecutive years.
The company, to be headquartered in Toronto, intends to provide SaaS-enabled operational and analytical tools through IBM Cloud that automate the creation, calculation, analysis and transparent distribution of sales incentive management compensation plans used by hundreds of mid-market and enterprise companies.
Varicent Software expects that its integrated platform will help solve critical pain points for sales, finance and HR constituents by centralizing previously complex, time-consuming and manual compensation processes to gain analytical insights and align sales behaviors to strategic goals. The software is designed for the end-user and is configurable to any industry or variable compensation model.