Deltek, Inc.

  • Overview
Deltek provides project management software designed to meet the needs of professional services firms and project-based businesses. Its applications handle expense reporting, HR administration, materials management, customer management, and sales force automation. Deltek integrates tools from partners such as Microsoft with its own software, and provides consulting and other services. Deltek targets the aerospace, construction, engineering, and information technology sectors. It also serves government agencies and contractors, an area of strength for Deltek where it holds a large market share. The company, which operates primarily in the US, is owned by Thoma Bravo.

Change in Company Type

Deltek was acquired by Thoma Bravo in late 2012 for about $1.1 billion. The private equity firm specializes in investing in software and technology firms, using a "buy and build" strategy to accelerate growth. The firm invested in Deltek because of its vertical market focus, broad customer base, global presence, and prospects for further expansion.

Geographic Reach

The company generates more than 80% of its sales in the US, but also operates in Canada, South Africa, the UK, Denmark, Sweden, Norway, the Netherlands, France and Australia. International sales have increased rapidly in recent years, growing from less than 6% of sales in 2009 to about 17% in 2011.

Sales and Marketing

Deltek markets its products and services primarily through a direct sales force. The company also uses resell partners for entry-level markets and geographies where it doesn't have a sales force. It claims nearly 2 million users across 15,000 organizations, including four of the top five global accounting firms, 90 of the top 100 US design firms, and 98 of the top 100 contractors with the federal government.

Financial Analysis

Other than a slight drop in revenue in 2009 amid the economic recession, Deltek has experience solid growth over the past decade. In 2011 it reported revenue of $341 million, up more than 20% year-over-year, as subscription sales boomed (up more than 600%) following the acquisitions of INPUT and Washington Management Group. The company also benefitted from strong maintenance and support sales during its first full year after the Maconomy acquisition.

Deltek had a net loss of $3.4 million in 2011, which is up from a loss of $5.1 million the prior year. The company's research and development and sales and marketing expenses rose by double digits, and it reported a restructuring charge of about $12 million related to personnel cuts and office closures resulting from the integration of recent acquisitions.

Mergers and Acquisitions

Deltek has also used acquisitions to enhance its product portfolio, add to its customer base, and expand into new markets. In a bid to make inroads into the government contracting market, Deltek bought Reston, Virginia-based mySBX (an online networking community for government contractors) in late 2009. It continued to enhance its government contracting services in 2010 and 2011 with the acquisitions of INPUT, which provides software and services that clients use to identify and develop business opportunities with federal, state, and local governments, and Washington Management Group, which provides market intelligence and consulting related to government contracts via its FedSources business.

In 2010 it bought Danish firm Maconomy for about $73 million in a move to expand its European presence. The acquisition also broadened Deltek's professional services organization and added new resource management capabilities across the company's customer base.

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Deltek, Inc.


2291 Wood Oak Dr.
Herndon, VA 20171-2823
Phone: (800) 456-2009
www.deltek.com

STATS


  • Employer Type: Private
  • Chairman, President, and CEO: Kevin Parker
  • SVP, CFO, and Treasurer: Michael Krone
  • Chairman, President, and CEO: Kevin Parker

Major Office Locations

  • Herndon, VA