Target Information

OutSystems, founded in 2001, is a global leader in low-code rapid application development. The company has successfully raised $360 million from prominent investors KKR and Goldman Sachs, valuing it at over $1 billion. This funding aims to boost business expansion and advance research and development in software automation. OutSystems' platform allows organizations to efficiently build, deploy, and manage enterprise-grade applications, significantly accelerating the development process compared to traditional coding methods.

The OutSystems low-code platform is widely utilized by notable companies such as Toyota, Logitech, Deloitte, and Schneider Electric, facilitating the rapid development of custom applications. This system empowers both software developers and business users to create applications through a user-friendly visual interface, enabling a faster response to market demands despite the ongoing shortage of skilled developers.

Industry Overview

The low-code application development market is undergoing significant growth, with projections indicating continuous expansion in the coming years. As digital transformation initiatives gain momentum across various business sectors, the demand for solutions that improve efficiency and reduce development times is surging. OutSystems is strategically positioned at the forefront of this trend, meeting the needs of businesses looking to innovate quickly.

In regions like the US and Europe, companies are increasingly recognizing the importance of agility in software development. Industries ranging from finance to manufacturing are adopting low-code solutions to modernize their systems and operational processes. By simplifying application development, businesses can not only save costs but also enhance their competitive edge in increasingly dynamic markets.

The rising penetration of artificial intelligence and automation within the low-code sector is also notable. These advancements enable a streamlined development process that allows for greater customization and flexibility in applications, further augmenting the value proposition of low-code platforms like OutSystems.

Additionally, OutSystems has established a robust global presence, serving thousands of clients in over 50 countries. With nearly 250 partner integrators developing on its platform, the company is effectively capitalizing on the global shift toward digital solutions that prioritize speed, efficiency, and user experience.

Rationale Behind the Deal

The investment from KKR and Goldman Sachs reflects confidence in OutSystems' strategic vision and its potential for significant market growth. By harnessing the latest advancements in automation and AI, OutSystems aims to address the pressing challenges faced by enterprises in software development.

KKR's investment aligns with its strategy of supporting top-tier technology entrepreneurs, while Goldman Sachs prioritizes backing innovative businesses that promise long-term value creation. This partnership is expected to facilitate further innovations in OutSystems’ offerings and accelerate its market penetration.

Information About the Investors

KKR is a prominent global investment firm that manages a diverse portfolio across multiple asset classes, including private equity and growth equity. The firm focuses on generating attractive returns for its investors through a disciplined investment approach, leveraging its extensive resources and network to drive growth in its portfolio companies.

Goldman Sachs Private Capital Investing serves as the investment arm of Goldman Sachs dedicated to supporting growth-oriented companies across various regions, including Europe and Israel. The firm prides itself on partnering with exceptional founders and management teams, ensuring that its investments align with long-term value creation and operational excellence.

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Given the significant growth potential of the low-code application development market, the investment in OutSystems by KKR and Goldman Sachs represents a strategic move that could yield substantial returns. The company's existing customer base and reputation as a market leader position it well for ongoing success as businesses increasingly prioritize efficient software solutions.

OutSystems' ability to continuously innovate while addressing the critical challenges faced by enterprises, such as the slow pace of traditional software development, enhances its investment appeal. With a focus on expanding its platform and leveraging advanced technologies, OutSystems is likely to attract more businesses seeking agility and efficiency.

The partnership with seasoned investors like KKR and Goldman Sachs further fortifies OutSystems' position in the market. Their involvement not only brings financial backing but also strategic insights and resources that can significantly accelerate growth.

In summary, OutSystems is poised for strong future performance, making this investment a highly favorable opportunity for KKR and Goldman Sachs while reinforcing OutSystems' role as a pioneer in the low-code development space.

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