Webmetrics, founded in 1999, is a leading provider of website performance monitoring solutions. Their hosted, Software-as-a-Service (SaaS) product provides the most comprehensive solution in the website monitoring market. Webmetrics' industry-leading solution, GlobalWatch, is the premier solution for organizations that participate in complex web service ecosystems. When Arbor took the Company to market, it was cash flow positive with 50% year-over-year growth.

The Challenge

Webmetrics had built a true enterprise-level product, but lacked scale and sales/marketing capabilities. The sector had significant barriers as many of the sales channels were controlled by the larger players. The founder was looking for a liquidity event to diversify his wealth. Arbor competed against six other banks, and was chosen for its differentiated approach to negotiations.

The Solutions

NeuStar bought 100% of WebMetrics in early 2008, cashing out all shareholders. NeuStar used the Webmetrics solution to move into the website performance monitoring space, and was able to support the product through its in-house sales and marketing team.

Arbor Value Add

• Contacted over 90 prospective buyers from over 8 different categories
• Found a buyer that was unknown to the Company and not currently in the performance monitoring space
• Brought multiple parties to the negotiating table
• Negotiated a large up-front payout with an attractive up-side in the form of a performance based earn out