Mercato Partners' Traverse Fund Portfolio Company SaltStack Acquired by VMWare

The acquisition marks the fourth exit for a Mercato Traverse fund company in 2020

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Sep 29, 2020, 14:29 ET

SALT LAKE CITY, Sept. 29, 2020 /PRNewswire/ -- Today, Mercato Partners, announced the acquisition of its portfolio company, SaltStack, by VMWare, a division of Dell, a global leader in cloud computing and virtualization software and services for an undisclosed amount. Part of the Mercato Traverse Growth Fund III, SaltStack specializes in network, security, and infrastructure automation and management.

This marks the fourth portfolio exit in 2020 for Mercato's Traverse Growth Fund. On September 18, Ericsson agreed to purchase Boise, Idaho-based Cradlepoint for a $1.1B all-cash transaction. In June Central Logic was acquired by Rubicon Technology Partners. Finally, in April, Galileo Financial Technologies was acquired by SoFi for $1.2B.

SaltStack's acquisition by software giant VMWare, a global leader in cloud computing and virtualization software and services is another example of Mercato's commitment and ability to find globally relevant opportunities in out-of-the-way locations; a skill developed over the past 12 years.

"We could not be happier for the SaltStack team," said Ryan Sanders, director at Traverse Fund. "When we invested in this Lehi, Utah company in 2017, we leaned into the Founders' growth vision and saw the potential for SaltStack to revolutionize the way enterprises could deploy, manage, and secure their network assets. During this period, SaltStack developed robust vulnerability management capabilities and enhanced their event-driven automation market leadership. The acquisition by VMWare serves as confirmation for the technology they have developed and the business they have built."

Founded in 2012, SaltStack has its roots in the open source world and has built and grown a passionate and loyal open source community. They have since transformed into an award-winning enterprise SaaS software company used by IT and security teams to help businesses more efficiently deploy, protect, and manage all aspects of their digital infrastructure. SaltStack's software is unique, providing intelligent, event-driven automation for efficient control of complex business systems at any scale.

"The team at Mercato has been with us since 2017, every step of the way," said Marc Chenn, CEO and co-founder of SaltStack. "Their support went beyond just funding. From their recruitment of Pluralsight CMO Heather Zynczak as an Independent Board Director to the value-add of Mercato's Performance Team - their involvement really made a difference in the outcome we are celebrating today."

About Traverse
Traverse is the flagship growth fund at Mercato Partners, a multi-strategy investment firm which specializes in overlooked and underserved markets. Traverse leverages the breadth of its team's investing and entrepreneurial experience to provide both capital and operational guidance for rapidly scaling companies in the technology and branded consumer segments. For over a decade, Traverse has found, funded, and collaborated with high-growth companies to help them achieve transformative growth, market leadership, and long-term value. For more information, please visit www.traverse.mercatopartners.com.

About SaltStack
SaltStack intelligent IT automation software is used to help the largest businesses in the world manage and secure their digital infrastructure. Recognized for its powerful event-driven approach to hybrid cloud infrastructure configuration and control, SaltStack software delivers continuous compliance and vulnerability remediation while providing collaborative solutions for IT and SecOps teams. https://www.saltstack.com.

About VMware
VMware software powers the world's complex digital infrastructure. The company's cloud, app modernization, networking, security, and digital workspace offerings help customers deliver any application on any cloud across any device. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough technology innovations to its global impact. For more information, please visit https://www.vmware.com/company.html.

SOURCE Mercato Partners