SOURCE: ServiceSource

January 30, 2007 08:00 ET

General Atlantic Invests $66 Million in Market Leader ServiceSource

Global Private Equity Firm to Support ServiceSource in Advancing Its Market Leadership Position & Expanding Its Global Presence

SAN FRANCISCO, CA -- (MARKET WIRE) -- January 30, 2007 -- ServiceSource, a global outsourcing provider focused exclusively on increasing support and maintenance revenue for hardware, software and healthcare companies, announced today that it has received $66 million in capital from General Atlantic LLC (GA) for a minority stake in the company. ServiceSource assists companies such as Sun Microsystems, AT&T, Hitachi Data Systems, and CA to dramatically improve the financial performance of their worldwide services business. The company is privately held, profitable and boasts a blue-chip client list that includes more than 40 technology leaders.

ServiceSource will leverage this relationship to expand its worldwide presence beyond its current U.S. and EMEA operations, to significantly increase its market share in the hardware, software and healthcare segments and to continue to advance its technology solution.

The company also announced today that Marc McMorris, Managing Director of General Atlantic, and James Madden, Founder and CEO of leading HR outsourcer Exult until its sale to Hewitt Associates in 2004, will join the company's board of directors.

"We are partnering with General Atlantic because it is one of the world's leading strategic investors, and it brings us a unique combination of outsourcing experience and global expertise," said Mike Smerklo, President & CEO of ServiceSource. "ServiceSource has experienced tremendous growth, and we have aggressive plans for scaling our worldwide business. General Atlantic has a long legacy of backing successful high-growth companies, and it has extensive experience in the global outsourcing industry. The addition of Marc and Jim to our board gives me even greater confidence that we will achieve our goals."

"We have more than a decade of experience investing in leading outsourcing companies," said Mr. McMorris. "What makes ServiceSource unique is that it created and is shaping the development of the outsourced service sales market. We were attracted to the company's proven track record of profitability and success in acquiring new clients. We believe ServiceSource will continue to accelerate its growth by increasing its global footprint, entering new markets and expanding its service offerings to clients. This company has a fantastic opportunity ahead of it."

General Atlantic, a pioneer in the outsourcing industry, has a long-term investment horizon and an active value-added approach to investing in both public and private companies. GA has deep technology expertise and has been active in the outsourcing sector since the mid-1990s, with investments in leading companies including Genpact, Xchanging and Exult. At ServiceSource, General Atlantic complements existing investor Benchmark Capital, which also brings a strong reputation in technology. This combination -- outsourcing expertise and technology knowledge -- reflects the vision of what ServiceSource ultimately delivers to its clients.

About ServiceSource

ServiceSource is dedicated solely to maximizing support and maintenance revenue for technology companies. Within the technology industry, support and services revenue total over $135 billion worldwide, and companies typically realize only 84% of their maximum opportunity. By combining proprietary business analytics and diagnostic tools, streamlined sales processes and reporting technologies to create a complete outsource solution, ServiceSource maximizes this maintenance opportunity on behalf of its clients. As of December 2006, over 40 clients have benefited from improved financial performance, a higher level of predictability in their annuity stream and increased visibility over reported results. The company is based in San Francisco and has additional Service Centers in Denver, Houston and Dublin, Ireland. ServiceSource is profitable, privately held and backed by institutional investors General Atlantic, Benchmark Capital and Housatonic Partners. For more information on ServiceSource, visit or call 415.901.6030.

About General Atlantic

General Atlantic LLC is a leading global private equity firm providing capital for growth companies driven by information technology or intellectual property. The firm was founded in 1980 and has approximately $12 billion of capital under management. General Atlantic has invested in over 150 companies, with current holdings in 50 portfolio companies of which about one-half are based outside the United States. The firm is distinguished within the investment community by its global strategy and worldwide presence, its commitment to provide sustained value-added assistance for its portfolio companies and its long-term approach. General Atlantic has over 70 global investment professionals among its 150 employees worldwide with offices in Greenwich, New York, Palo Alto, London, Düsseldorf, Hong Kong and Mumbai. For further information and a listing of GA's public and private portfolio companies see

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