Petaluma's MarketLive Inc. bought by Vista Equity Partners

Petaluma-based MarketLive Inc., a leading e-commerce provider, announced Wednesday it has been acquired by private equity firm Vista Equity Partners.

Vista, based in Austin, Texas, will keep MarketLive headquartered in Petaluma and retain its approximately 125 employees, including the 100 workers who are based locally.

Founded in 1995, MarketLive provides e-commerce software for retailers and manufacturers that helps them sync with different payment platforms such as PayPal. It serves such businesses as Cost Plus, Marc Jacobs and Warner Bros.

As part of the acquisition, Vista also purchased Shopatron, a San Luis Obispo-based business that provides cloud-based order management systems. The two companies will be merged to provide a one-stop sales and order system for businesses, said Ken Burke, chief executive officer and founder of MarketLive.

Vista Equity Partners already has more than $14 billion in investments in numerous software, data and technology businesses. Sale terms were not disclosed, but Burke said he could see the combined MarketLive and Shopatron being at least a $200 million to $300 million business in the future, serving medium-sized retailers and above.

“Shopatron and MarketLive have established themselves as leaders in the global retail space, giving their customers innovative, easy-to-use tools for overcoming modern retailing challenges,” said Patrick Severson, principal at Vista Equity Partners, in a statement.

MarketLive had been pursued by other companies, Burke said, noting that there is a bidding war for tech companies right now, one that may not be around in the future. He noted MarketLive’s valuation was well above the industry average.

“We had a lot of competition,” Burke said. “They (Vista) were very aggressive.”

Ultimately, Burke said, he felt comfortable with Vista Equity Partners leadership team and its desire to combine its technology with Shopatron. “We got lucky,” he said.

MarketLive has experienced solid growth in recent years coming out of the Great Recession, including a hiring spree that is expected to continue after the sale. Its sales software handles almost $2 billion in sales, about a 50-percent increase from five years ago, Burke said.

Burke said he was not under any pressure to sell by his investors as the business was profitable, but he also realized MarketLive did not have the financial resources to grow by acquiring companies. He said the decision to sell after 20 years was a pragmatic move, given the bidding war this summer for his company.

Burke will stay around for the next year as the company undergoes a transition.

He said he has other ideas for future business endeavors.

You can reach Staff Writer Bill Swindell at 521-5223 or bill.swindell@pressdemocrat.com. On Twitter @BillSwindell.