TORONTO, Oct. 27 /CNW/ --

Company secures second-largest IT funding deal in Q3 2009

Varicent Software Incorporated, a leading Canadian innovator and provider of sales performance management (SPM) and incentive compensation management (ICM) solutions today announced it has raised $35 million in additional funding led by San Francisco and New York-based FTV Capital. RBC Venture Partners and EdgeStone Capital Partners, current investors in Varicent, also participated in the new round of funding.

The deal was the second largest privately-funded information technology funding announced in Q3 2009*, behind only Facebook. This represents both an acknowledgement of the steep growth trajectory for the sales performance management market, as well as Varicent's dominant role in the marketplace. According to Ventana Research, the SPM market is growing at 45% annually and in the U.S. alone is predicted to exceed more than $8 billion in 2010.**

"Varicent has developed a strong solution, assembled a driven, experienced management team, and amassed an impressive customer list. We are extremely enthusiastic about Varicent's leadership position and outlook for continued rapid growth," said Eric Byunn, FTV Capital Partner. "FTV's strategic limited partners - many of the world's largest financial institutions - have a huge corporate pain point in ineffective sales performance solutions. Varicent emerged at the top of our sector research because its solutions are consistently providing corporations with a measurable impact, driving sales effectiveness, increasing revenues, decreasing costs and improving internal visibility."

The funds raised will allow Varicent to continue its momentum as the leader in the SPM market. The company plans to further expand its international business, building on the successful launch of EMEA and APAC operations earlier in the year, accelerate the development of new features and functionality in its innovative sales performance management solution, Varicent SPM, broaden its reach into new verticals, and advance its mid-market penetration.

"The explosive market growth in SPM is being fueled by organizations who realize their path to renewed success requires a focus on improved sales effectiveness and a faster response to new opportunities and challenges," said Dan Shimmerman, President and CEO, Varicent Software. "Sales performance management arms decision makers with the latest and most accurate information on who is selling what to whom. It builds organizational alignment by ensuring that compensation plans are quickly implemented and changed to drive desired behaviors."

"We have two primary goals in adopting sales performance management," said Mark Towne, Director Global Information Services, Smith & Nephew, Inc.