Dura Software, a San Antonio-based holding company specializing in acquiring and scaling hyper-niche software products, has secured up to $50 million in investment from Peterson Private Equity.
Peterson Partners is an independent investment firm with over $2 billion under management across private equity and venture capital. Peterson Partners has invested in more than 250 companies across a wide range of industries, including Allbirds, Vivint, Packsize, Lucid Software, and Azul.
Dura is an entirely new type of software-focused company that acquires and operates B2B (business-to-business) software companies with the intent never to sell them. Founded by Paul Salisbury, Dura’s CEO, San Antonio entrepreneur Michael Girdley, executive chairman, and chief financial officer Chris Burney, Dura’s focus is on acquiring and operating niche software companies with annual revenue of at least $1.5 million to $4 million.
Dura has been acquiring niche software companies that serve critical business needs since its launch in June 2018, when it announced its first acquisition Moki Mobility, a cloud-based software for managing large numbers of mobile devices. Dura has 10 subsidiary companies and has scaled to almost $44 million in revenue in 2022.
Dura has a pipeline of more than $25 million of annual recurring revenue in late-stage acquisition opportunities, which they intend to close within the next two quarters. Dura’s companies collectively serve over 3,500 customers globally and employ 200. Peterson’s capital will be used to fund continued acquisitions.
“A buy-and-build strategy within software is compelling, as it should diversify away much of the idiosyncratic individual portfolio company risk and provide a long-term durable stream of cash flows,” said Jordan Lusk, principal at Peterson Partners. “The execution that Michael, Paul, and the Dura team are demonstrating is unique. We are excited to partner with them.”
Dura continues to seek companies for acquisition that generate $2 to $10 million in annual recurring revenue, have a high gross margin, and support ongoing critical business operations in a niche sector or industry. Dura owns its subsidiaries with the intent never to sell, setting the foundation for long-term profitability and strong return on investment.
“Dura is at an exciting launching point for accelerated growth with a proven model and a leadership team that is ready to go much faster,” Salisbury said. “Although we are happy with our progress to date, we are just getting started, and the Peterson Partners relationship will be a key enabler to future success.”
The featured image is of the entrance to Dura Software, a niche software holding company in downtown San Antonio. Photo credit: Startups San Antonio