Coveo announces $100 million investment led by Evergreen Coast Capital

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Quebec City-based Coveo has raised $100 million from San Francisco-based Elliott Management, in exchange for 27 percent stake in the company.

According to the Globe and Mail, the deal values Coveo at $370 million, and the company is valued at over $50 million in annualized revenue.

The investment was led by Elliott’s Menlo Park, California-based private equity affiliate, Evergreen Coast Capital. Coveo’s platform combines unified search, analytics, and machine learning to deliver relevant information and recommendations across interactions on digital platforms. The company partners with enterprises, and has over 1,500 activations in mid-to-large sized global organizations across multiple industries.

“Coveo has enjoyed hyper-growth year over year. We have been at the forefront of digital personalisation for the enterprise, a fast-growing market, with machine learning-powered search and recommendations software,” said Louis Têtu, CEO of Coveo. “With this financing, we intend to broaden our market footprint with even more aggressive investments in sales, marketing, channels, as well as launch new lines of business beyond the current Salesforce, Microsoft, and Sitecore products. In addition, we’re opening up a whole range of new opportunities by expanding our platform on Elasticsearch, enabling organizations to leverage Coveo as their enterprise-wide relevance backbone, from eCommerce to customer service and the intelligent workplace.”

The company plans to expand its research and development team, and Têtu said that it has grown its R&D centres in Quebec City and Montreal to more than 200 developers and data scientists. The company is a member of SCALE.AI, one of the superclusters receiving funding from the federal government in support of AI. Coveo will also use its investment for strategic acquisition opportunities.

“Evergreen focuses on fast-growing technology companies that have proven customer traction and a clear opportunity to win in growth markets. With Coveo’s evident leadership in the machine learning applications space, the company clearly fits that bill,” said Isaac Kim, managing director of Evergreen. “Throughout our extensive due diligence, we have concluded that the company is the indisputable leader in its market, and with its management team’s extensive experience and R&D superiority we see this market leadership only accelerating in the future.”

Bill Shaheen, operating executive with Evergreen, will join the Coveo board of directors.