September 10, 2021 01:06 PM EDT
NEW YORK--(BUSINESS WIRE)--RugsUSA, a leading e-commerce provider of area rugs and home décor products, announced today that Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses, has signed a definitive agreement to make a growth investment in the business. As part of the transaction, Comvest Partners, an operationally-focused private investment firm, will sell its majority position to Francisco Partners and retain a minority stake in the business. The pending transaction is expected to close later in 2021.
“RugsUSA has reinvented the rug-buying experience as the pioneer in driving area rug and home décor purchases online. Anyone who has bought a rug from RugsUSA knows first-hand how seamless the shopping experience is. Its user-friendly online merchandising platform offers a wide selection of high quality products at attractive price points combined with rapid delivery options,” said Alan Ni, who leads consumer internet investing at Francisco Partners.
Founded in 1998, RugsUSA provides an expansive selection of area rugs and home décor products directly to consumers via www.rugsusa.com as well as through leading e-commerce marketplaces and retailers. With a curated offering of approximately 20,000 products, the company provides consumers with unmatched choice, fast shipping, and exceptional value.
“RugsUSA is dislocating the traditional retail experience, and we are excited to be partnering with the company to accelerate growth in core markets and expand into new categories and geographies,” added Christine Wang, Principal at Francisco Partners.
“We are thrilled to have Francisco Partners as a strategic partner,” said Vidya Jwala, CEO of RugsUSA. “As we continue scaling our platform, Francisco Partners has deep experience accelerating the growth of other technology and digital commerce businesses, and is the perfect partner for us as we enter the next chapter in our journey and look to expand our customer reach in the future.”
“Vidya Jwala and the rest of RugsUSA’s talented team have been outstanding partners,” said Tom Clark, Senior Partner, Comvest Partners. “RugsUSA is an industry leader poised for continued success in the home décor category domestically and internationally.”
“We partnered with Founder Koorosh Yaraghi to successfully scale the infrastructure, systems and processes of the company,” added Kevin LaHatte, Partner at Comvest Partners. “We believe the company will continue to thrive under Francisco Partners’ ownership.”
Koorosh Yaraghi, Founder of RugsUSA, and Comvest Partners will retain a minority stake in RugsUSA.
Evercore and Financo | Raymond James acted as financial advisors and McDermott Will & Emery LLP acted as legal advisor to RugsUSA. Paul Hastings LLP acted as legal advisor to Francisco Partners. Barclays, Jefferies Finance LLC, Deutsche Bank and Stifel provided committed debt financing for this transaction.
About Francisco Partners
Francisco Partners is a leading global investment firm that specializes in partnering with technology and technology-enabled businesses. Since its launch over 20 years ago, Francisco Partners has invested in more than 300 technology companies, making it one of the most active and longstanding investors in the technology industry. With more than $25 billion in assets under management, the firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential. Francisco Partners has extensive experience in consumer internet, having partnered with leading companies such as GoodRx, LegalZoom, MyFitnessPal, Eventbrite, ZocDoc and more. For more information on Francisco Partners, please visit www.franciscopartners.com.
Comvest Partners is a private investment firm providing equity and debt capital to middle-market companies across the United States. Since its founding in 2000, Comvest has invested over $6.7 billion. Today, Comvest has over $5.4 billion of assets under management. Through its extensive capital resources and broad network of industry relationships, Comvest Partners offers companies financial sponsorship, critical strategic and operational support, and business development assistance. For more information, please visit www.comvest.com.
About RugsUSA Since launching in 1998, RugsUSA has been dedicated to helping customers turn their houses into homes, offering a stunning array of rug styles, materials and sizes to suit every design need and budget. With an expansive selection of rugs and home décor products, attractive price points, seamless online shopping experience and best-in-class fulfillment and customer care, RugsUSA is an experienced e-commerce pioneer and rug industry leader, with over eight million rugs sold to nearly two million homes. For more information, please visit RugsUSA.com.