Private equity firms GI Partners and TA Associates have acquired a majority stake in cloud content collaboration company Egnyte, which aims to enhance the firm’s market presence and drive innovation through additional investment in research and development. Founded in 2007, Egnyte has raised a total of one hundred thirty-seven million dollars across several funding rounds and currently serves over twenty-two thousand customers, including notable names like Red Bull and Yamaha. Egnyte’s CEO, Vineet Jain, emphasized that this investment marks a significant milestone in the company’s journey, unlocking new opportunities for its customers and partners. With the backing of private equity, Egnyte aims to accelerate growth and expand into new international markets and industries.
Why do we care?
Private equity firms are increasingly targeting mature but under-leveraged SaaS companies that already have a solid customer base but need capital to scale. Egnyte has 22,000 customers but has remained a mid-tier player in a market dominated by Microsoft, Google, and Box. For MSPs, this signals that Egnyte may become a more aggressive player in channel partnerships and enterprise adoption—potentially opening new opportunities but also increasing competitive pressure.
While this investment fuels expansion, private equity backing isn’t always a positive for customers. PE firms often prioritize short-term profitability, which can lead to price hikes, reduced flexibility, or diminished customer support. If Egnyte moves too aggressively in chasing enterprise deals, it could alienate smaller customers who rely on its flexibility.
MSPs should watch whether Egnyte remains channel-friendly or shifts toward direct enterprise sales. If the latter happens, it could limit opportunities for IT providers looking to resell or integrate Egnyte’s platform.
