Palo Alto, Calif.-based Jive Software has announced the completion of its sale to privately held Aurea in a deal worth $462 million. The community collaboration software company, which went public in 2011, announced that it had agreed to be acquired by private equity firm ESW Capital’s Wave Systems in early May of 2017. As Jive becomes part of the Aurea family of companies, management will shake up at the tech firm.
Founded in 2001 by Bill Lynch and Matt Tucker, Jive Software offers enterprises social networking tools which encourage collaboration among their employees. In 2007, the company received a $15 million investment from Silicon Valley venture firm Sequoia Capital, which followed up with another $12 million investment in 2009. After laying off one-fifth of its staff amidst the recession in 2008, longtime CEO Dave Hersh stepped down in 2010 as the company moved its headquarters from Portland and received another $30 million in funding from Sequoia and Kleiner Perkins. While the software provider went public at $12 a share, seven years later decelerated growth and executive turnover cut its share price over half, prompting its sale to Texas-based Aurea.
According to The Oregonian, Jive’s staff fears that the new ownership will taint the open, collaborative work culture at the company and may look to further reduce its workforce. Over a dozen employees have reportedly left the company after Chief Executive Officer Elisa Steele told customers that she is leaving the organization once the transition is complete.
Current Jive executives Ofer Ben-David and Robert Block will join Aurea’s management as Chief Technology Officer and Vice President for customer success, respectively.