Tuesday, August 5, 2008

DynaTrace seals $12.9M in Series B funding

By Mass High Tech Staff

DynaTrace Software Inc. reported that it closed $12.9 Million in Series B financing led by Bay Partners and Bain Capital Ventures.

Waltham-based dynaTrace, which produces performance management software, plans to use the capital to expand the company’s sales, marketing and business development. The funding increases dynaTrace’s total venture capital to nearly $18 million, as reported last month in Mass High Tech.

The latest financing attracted six investors including Bain Capital Ventures, a division of Boston-based Bain Capital LLC, and lead investor California-based Bay Partners.

DynaTrace, which now employs 75 workers, launched its first software in 2006. Customers are mostly financial services companies, independent software vendors and software-as-a-service companies, officials said.

The company has enlisted a number of former managers of Westwood-based Precise Software, which was acquired in 2003 by Veritas Software Corp. for $537 million.

In addition to Bain Capital managing director Benjamin Nye, who was Precise’s COO, dynaTrace CFO Mo Garad was Precise’s vice president of finance, and board member Shimon Alon was the company’s CEO. Precise, also an application performance management software maker, was spun out as an independent company from Veritas acquirer Symantec Corp. (Nasdaq: SYMC) in March and is now a dynaTrace competitor.

DynaTrace employs about 50 workers at its development facility in Austria and 25 workers in the United States, including 12 in Waltham. In March, the company reported record revenue during 2007, tripling its revenue versus 2006, although it doesn’t disclose revenue figures.