The Largest Sale of Cloud Computing Company in 2009

Compuware’s $295 million cash acquisition of Gomez realized $93 million for Dolphin investors, a 770 percent return

Dolphin Equity Partners recorded one of the largest single returns for limited partners among venture capital investors in 2009 and the largest sale of a privately held Cloud Computing company with its fourth-quarter sale of longtime investment Gomez Inc. to Compuware Corporation (NASDAQ:CPWR), firm President Richard Brekka said at today’s annual limited partner meeting.

Compuware’s $295 million cash acquisition of Gomez realized $93 million for Dolphin investors, a 770 percent return. Dolphin was Gomez’s largest shareholder and first invested in the company in 2000, when it saw an opportunity to build on Gomez’s nascent Web-performance monitoring assets and its then-pioneering delivery via the Software as a Service model.

“Dolphin is committed to looking for long-term investment opportunities that have huge potential payoffs, especially among SaaS technology providers,” Brekka said. “With our hands-on approach to helping find and support the right management teams, we’ve been able to create some truly innovative companies that have delivered real returns for our investors.”

The Gomez acquisition is the latest in a series of increasingly high-quality exits for Dolphin portfolio companies over the past few years, including Enpocket (sold to Nokia in 2007) and MaxPreps (sold to CBS in 2007).

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