Alemba

Introduction

Alemba's global presence, with support hubs strategically located in Europe, North America, Australia, and New Zealand, underscores its commitment to serving a diverse clientele. With a robust portfolio of customers spanning various industries, Alemba is trusted by organizations worldwide to fulfill their daily IT Service Management needs. Alemba stands out as a formidable ITIL-aligned ITSM solution, empowering mature IT organizations to optimize their service management processes and elevate service delivery standards. Since becoming part of the IT Service Management vertical within Volaris Group in 2022, Alemba continues to leverage its expertise and innovative solutions to drive success for its clients across the globe.

Background

The inception of Alemba traces back to 1992, when the software was originally developed by Infra, based in Sydney, Australia. Simon Nugent, the founder, worked with this software during his tenure in Australia from 1992 to 1994. Following his time with Infra, Nugent ventured into different endeavors for a few years. However, due to persistent requests from former clients, Nugent established Alemba to provide professional services with a focus on software development. This marked the beginning of Alemba's journey, bridging professional services with software development. The software developed by Infra was eventually acquired by EMC, which later transitioned to VMware. Subsequently, Alemba negotiated with VMware to regain control of the software, completing the spin-out process in 2014. This historical context is essential when discussing Alemba's subsequent decisions, including the reasons for its eventual sale.

Decision to Sell

In their quest to sell Alemba, founders Simon Nugent and Laurence Scott-MacKay engaged in negotiations with VMware. Facing challenges due to their small size and VMware's impending acquisition by Broadcom, the pair opted to explore selling the company, a decision backed by VMware. With the help of a broker, they assessed potential buyers, among them Volaris Group. Early interactions with Volaris showed promise but after discussions with various acquirers, Volaris stood out for its professionalism and confidence.

Following a daunting experience with a private equity firm, their engagement with Volaris felt like a breath of fresh air. Volaris' established reputation and clear communication style made them an ideal partner for the acquisition. Finding Volaris receptive and understanding, Nugent openly discussed their challenges, including ties to VMware and revenue fluctuations.

We just wanted something that was going to be easy and straightforward. And we immediately could see Volaris had done this loads of times before and that was very reassuring to us. It was routine business as usual for Volaris and that really comforted us after what we've been through. Volaris was very professional, very easy to talk to, so the communication was very straightforward and clear from the outset.

- Simon Nugent, VBU Leader

Ultimately, Volaris Group emerged as the clear choice, offering not only a smooth acquisition process but also the expertise and support needed for the company's future growth and success.

Qualities in a Buyer

Nugent and his co-founder were initially unsure on the qualities they sought in a buyer for Alemba, as they had limited prior experience in this area. Their initial focus was predominantly on financials and the possibility of exiting the business. However, they soon recognized the importance of considering other critical factors, including the future of the company, its employees, and the product itself. Feedback received early on, particularly from discussions between the founders, emphasized that while financial considerations were significant, they were equally concerned about the well-being of the company and its stakeholders.

Pre-Acquisition Promises

Volaris assured Alemba from the outset that with Volaris Group’s decentralized structure, Alemba would continue to operate independently with the existing team in charge. Initially skeptical, Nugent anticipated the possibility of being replaced shortly after the acquisition. However, he was pleasantly surprised to find that Volaris kept true to their word. While Volaris implemented certain financial reporting practices, the Alemba team was largely left to manage the company autonomously. This adherence to their promise was unexpected yet greatly appreciated by the team.

I was sort of staggered that they held up to that promise.
- Simon Nugent, VBU Leader

Integration Process

The integration process went smoothly for Alemba, without any significant issues. Volaris seemed to absorb Alemba gradually and gently, which contributed to a positive experience. While integration wasn't highly structured, financial matters were swiftly addressed, whereas IT-related aspects took longer to finalize. They began engaging with HR and legal teams relatively early in the process. Despite this, Nugent noted that his team managed well and felt adequately supported throughout the entirety of the process.

Additionally, Nugent notes that Volaris has since appointed dedicated integration managers, suggesting a more hands-on approach for future acquisitions. However, for Alemba, the process was satisfactory as they were able to navigate it independently. 

Changes Post-Acquisition

Nugent believes customers may not have noticed significant differences post-acquisition, as any changes were relatively subtle. However, he noted noticeable changes among the staff. One of the most significant changes observed was in performance management, as Volaris emphasizes talent management, which had not been a strong focus for Alemba prior to the acquisition. Initially lacking in this area, staff now receive structured, formal performance reviews and access to development events with software company leaders from all over the world, greatly improving their employee experience.

While both the founders and the staff may have been initially nervous about the acquisition, they have since seen the promised benefits materialize, leading to increased satisfaction among the team. As a result, staff turnover has remained remarkably low since the acquisition.

Post-Acquisition

Another significant positive aspect of Volaris Group’s involvement is the improved visibility into Alemba’s finances. This has enabled the team at Alemba to make more informed decisions based on reliable data rather than relying on intuition alone. They have observed a maturity in their decision-making processes as a result.

We stuck to our core markets for the first couple of years after acquisition, but we now have an active plan to expand more into Europe.

– Simon Nugent, VBU Leader

Additionally, Nugent noted, Alemba has seen enhancements in leadership training and performance management, marking a significant improvement for the team. Being part of Volaris Group has exposed them to a wealth of knowledge from other software companies. The team has benefited from sharing insights and experiences, even on seemingly small but crucial matters like achieving ISO certification. Through the Volaris network, they were able to quickly identify a suitable consultant, streamlining the process and saving valuable time. 

This support network has proven invaluable in various aspects of their business operations, facilitating smoother processes, and fostering growth opportunities.  

The Volaris Impact

Utilizing resources provided by Volaris has been instrumental for the team. They have found a plethora of materials available, including best practices, and knowledge shared among a network of software business leaders. 

In addition to these resources, Alemba has found value in participating in Volaris-sponsored events such as summits and video conferences. These gatherings provide opportunities for learning and networking, even on specific topics of interest like AI or Marketing. For instance, their new marketing lead found belonging to the portfolio marketing group particularly beneficial, as it provided her with a supportive community and valuable connections. This access to a network of professionals within the Volaris Group has been invaluable, especially for roles like marketing, where collaboration and external input are crucial for success.

Speaking on Volaris to other Professional Managers:

If speaking to a professional manager about selling their business, Nugent would advise careful consideration of the type of company or organization they're selling to, emphasizing that not all acquisitions are the same. It's important to understand the implications of being acquired by different entities, such as private equity firms, and how it will affect day-to-day operations.

You know that with Volaris, you're going to be left to run your business pretty much as you are. You know it's highly decentralized. But you're going to get all the benefits of being in a big group and the resources that you can draw on.  I have found in Volaris everybody is super friendly and approachable. Somehow Volaris seems to have avoided getting those real big egos, which is great.

– Simon Nugent, VBU Leader

Ultimately, Nugent notes his team’s positive experiences with the people at Volaris, highlighting the approachability and friendliness of everyone he encounters. This contrasts with their experiences with other larger corporations, where higher-level staff can be less accessible. Overall, Nugent would portray Volaris as a welcoming and supportive environment making it an attractive option for potential sellers.