By Vinay Bhagat, Co-founder & CEO, TrustRadius
Last week (March 11th) Gartner acquired Software Advice, a privately held company in Austin, Texas. Per Gartner’s press release, “Software Advice offers detailed reviews, comparisons and research to assist organizations in finding products that best fit their current and future needs.” The purchase price is rumored to be approximately $150 million, a 10x multiple to revenue.
I would like to offer the team at Software Advice my congratulations for a great exit. The company was bootstrapped from inception so it’s a particularly strong accomplishment.
My understanding is that Gartner’s interest in Software Advice was predicated on the fact that they are searching for a way to serve the SMB market. In my experience, the portion of the market not addressed by Gartner’s current offerings extends well into the mid-market. But many companies with 500-5,000 employees find that Gartner’s minimum price points are too high and the products covered too large-enterprise oriented.