Catalyst DevWorks, the recognized leader in using data to enable higher performing and faster responding software engineering teams, announced today that it has closed on an investment of $11.5 million from Salem Investment Partners.
Catalyst leverages data and predictive analytics to hire and assemble software development teams, enabling the company to solve a critical business issue facing today’s enterprise: a lack of the necessary software engineering capabilities required to apply technology to core business strategy and quickly respond to changing markets. Catalyst gives enterprises the ability to deploy software engineering teams within 24 hours, and to dramatically reduce the time it takes to find and hire engineers.
The investment will further accelerate Catalyst’s growth. A pioneer in the use of data and predictive analytics to improve the productivity of outsourced software engineering teams, Catalyst grew revenue 87% in 2015, with 75% of its revenue coming from Fortune 500 companies. Catalyst’s growth reflects several trends: (1) the need for rapid response software engineering teams to build digital technologies that are transforming every industry and every enterprise, and (2) the application of big data and predictive analytics to transform markets like talent and technology services that have seen limited innovation for decades.
“Our typical client is a technology leader developing the capability to build technology core to their business strategy, whether that technology is part of a customer-facing product or a technology used to better understand user experience and behavior,” said Michael Rosenbaum, Catalyst DevWorks CEO. “As technology changes how every industry interacts with its customers, our clients need the ability to deploy engineering capabilities the next day. We give our clients the tools to do so. Our partnership with Salem Investment Partners will enable us to accelerate our pace of growth with investments in sales and marketing and to expand the capabilities of our core technology to provide even more value to our clients.”
“The Salem team is excited to partner with Catalyst to accelerate its growth in the software engineering market. Catalyst’s tremendous success in solving the challenges organizations face in applying technology to their businesses, coupled with its phenomenal growth, will continue to propel its meaningful effect on this critically important global market,” said Adam Norris, Principal at Salem.
In addition to its services offerings, Catalyst’s core predictive analytics technology, the Catalyst Talent Platform, has been recognized by analysts and Fortune 500 companies for speeding engineering talent acquisition and dramatically improving software engineering outcomes. In the past year, Catalyst announced the availability of the Talent Platform for licensing by qualified clients as a hosted service.
The recent investment will allow Catalyst to reinvest more in its own organic growth – adding additional marketing and sales capabilities, more quickly identify and hire technologists and continue to evolve its Platform for both internal use and licensing to clients.
About Salem Investment Partners
With two offices in North Carolina, Salem Investment Partners specializes in debt and equity investment in privately-held, middle market businesses. The firm’s principals have completed over 100 investment transactions in companies across a variety of sectors and business cycles, and it has a depth of experience in the technology services market.
About Catalyst DevWorks
Catalyst applies predictive analytics to assembling teams of software engineers. It deploys that technology in two ways: by using the technology to assemble outsourced agile engineering teams that can be rapidly deployed to client projects, and by offering the technology as a cloud-based platform to enable clients to use analytics to accelerate and improve their own teams of full-time employee software engineers. Catalyst clients and industry analysts have shared data showing Catalyst enables deployment of teams within 24 hours, improves development productivity by 77% and quality by 55%, all at one-third the cost of tier one offshore providers. For more information regarding Catalyst DevWorks, please visit www.CatalystDevWorks.com.