InRule Technology, Inc.

Decision management / business rules management software that automates mission-critical decisions for enterprise customers and large organizations.

Over 200 customers across diverse end markets including financial services, public sector, IT/Business services, healthcare, and insurance. Completed two strategic add-on investments with Bariuimand simMachinescreating a transatlantic entity.

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Acquired:

August 16, 2019

Transaction Type:

Private Seller

Acquired from:

Private Seller

Industry:

Software

Headquarters:

Chicago, IL

Buyer:

Pamlico Capital

Realized:

October 13, 2022

Transaction Highlights

OpenGate maintained a relationship with InRule through its proprietary software outreach program dating back to 2016. Following periodic discussions with Rik Chomko (CEO) ahead of a formal marketing process, OpenGate was well-positioned when they came to market. In 2019, InRule hired a boutique technology investment bank, which OpenGate maintained a pre-existing relationship with, to run a small, targeted auction focused on finding a long-term growth partner. Given the pre-existing relationship with Rik, OpenGate was identified as a logical fit and was the preferred buyer.

Investment Merits

Mission-critical product: Due to large process loads it supports for its clients
Established product with a long-term presence in the space: Recognized by industry experts and analysts as a leading decision management platform
Operational improvements: Business has been historically bootstrapped and not invested fully into development and sales
Opportunity via M&A to expand product offering, geographic footprint and build additional scale

Value Creation

Primary focus on recurring revenue through organic customer growth and strategic add-on acquisitions
Tripled ARR (annualized recurring revenue) over a three-year period, growing from $8.5m to ~$25m
Hired key employees across functional areas such as an experienced Chief Product Officer and resources in sales, accounting, HR, and R&D
Focused product strategy and roadmap, accelerated investments across the platform transitioning into multi-tenant SaaS, and upgraded no-code and process automation capabilities for its customers
Add-on acquisitions of simMachines and Barium broadened the product offering into a full suite intelligence automation platform which now includes decisioning, process automation, and machine learning capabilities
Expanded geographic presence in Europe through the Barium acquisition
Sales and marketing improvement to redesign the sales organization, marketing efforts, and channel strategy while also enhancing the efficiency of the organization
Improved market positioning with analyst firms (Forrester) from “Challenger” to “Strong Performer”
IT improvements to support further scalability and growth including a new ERP system and SOC2 Type II compliance, a requirement for enterprise customers