YCharts Acquired by PE Firm in All-Cash Deal | ARR Growth

This morning, YCharts, a provider of financial data and charting tools, announced its acquisition by LLR Partners, a private equity firm.

The companies have characterized the agreement as a “growth recapitalization,” suggesting the intention is to foster continued development without significant restructuring or personnel changes to quickly improve earnings. TechCrunch has verified that the transaction was completed entirely in cash.

According to information YCharts shared with TechCrunch via email, the company anticipates exceeding $15 million in annual recurring revenue (ARR) this year. They also report consistent top-line growth at a compound annual rate of 30% to 40% over the last several years.

These figures suggest a substantial valuation for YCharts. Based on current market multiples, the company’s worth likely ranged from 10 to 20 times its ARR. This would value the deal (assuming an ARR of approximately $13.5 million at the time of sale) between $135 million and $270 million, though a lower price is possible if LLR Partners negotiated a discount or if the company’s financial performance differed from current estimates.

The specifics of the transaction, including the final price, were not disclosed by either company.

As a long-time user of YCharts — the company even customized my account with TechCrunch’s signature green color for chart sharing — I’ve come to recognize the service’s capabilities. It’s a valuable resource for creating clear and informative charts using extensive financial data, such as illustrating historical trends in Tesla’s price/sales ratio in comparison to its competitors.

Accessible and easily shareable financial tools are uncommon in the market dominated by Bloomberg. Therefore, it is hoped that the promised investment from this transaction will benefit YCharts.

When asked why YCharts chose to be acquired rather than pursue additional funding, CEO Sean Brown explained that while raising capital is readily achievable, LLR Partners offers more than just financial resources. Brown stated that the investment group aligns with YCharts’ vision, possesses significant experience in the industry, and provides a dedicated team specializing in fintech, along with valuable strategic and operational expertise.

The CEO also highlighted LLR’s previous investments in other fintech companies and noted that the buyout will provide YCharts with capital to further invest in product development, sales, and marketing efforts.

YCharts previously secured funding through several rounds, including a 2010 Series A led by Hyde Park Angels and I2A Fund, as well as Series B and C rounds led by Morningstar. According to Crunchbase data, the company had raised approximately $15 million in known funding.