An emerging, differentiated leader in hyperconverged infrastructure
-
STATUS
Active
-
Year
2020
-
LOCATION
San Jose, CA
KEY TRANSACTION DETAILS
- 2020 $750M Convertible Senior Note (Bain Capital Private Equity)
BUSINESS OVERVIEW
Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making computing invisible anywhere.
22,000+
Global companies trust Nutanix
90
Net promoter score
THE BAIN CAPITAL ADVANTAGE AT WORK
Nutanix, founded by Dheeraj Pandey, Mohit Aron and Ajeet Singh in 2009, had built itself into a dominant player in the hyper-converged infrastructure (HCI) market. Bain Capital, an admirer of its superior products, had been tracking the company for a long time, including as a publicly traded company with strong infrastructure technology tailwinds.
We saw in Nutanix a company positioned to win as the market shifted towards a hybrid computing paradigm in which enterprise customers have their infrastructure needs met by an empowering new set of data infrastructure options that work across both public and private clouds.
Starting in 2018, the management of Nutanix began to transition its model away from big up-front licenses to a more SaaS-centric subscription model, which impacted revenue recognition and cash flow.
While public investors grew skittish, Bain Capital dug deep and saw a company with enthusiastic customers in the midst of a sound, but difficult, transition in its business model. Together with the company’s board of directors, the company’s CEO Dheeraj Pandey decided that we were the right partner to help the company continue to scale as an organization to meet a huge market need. Bain Capital invested $750M behind the future of Nutanix, and while we’re still in the early innings of our investment, the company has grown significantly and continues to deliver exceptional value to its customers.
In 2020, if you had looked at Nutanix’s surface level metrics, you wouldn’t have seen a high growth business as it worked through its revenue model transition. But through our diligence and our understanding of the market, we saw a company that was gaining market share and doing quite well. It was stunning. We said: we can help this company through this and help build a great software platform.
