DocuSign Declines to Comment on Reported Exploration of Sale

DocuSign, an eSignature company, has declined to comment on a media report that it is considering a potential sale.

Reached by PYMNTS on Friday (Dec. 15), a DocuSign spokesperson said: “As a matter of policy, DocuSign does not comment on market rumors or speculation.”

The Wall Street Journal (WSJ) reported Friday that the firm is considering a potential sale that could result in one of the largest leveraged buyouts in recent memory.

Private equity firms and technology companies are expected to show interest in the $11 billion company, the report said.

DocuSign’s technology allows users to securely send and sign documents from anywhere, using any device, according to the report. Its customer base ranges from individual business owners to large corporations.

The company went public in 2018 with a valuation of around $6 billion and has experienced significant growth since then, the report said.

The COVID-19 pandemic played a crucial role in driving demand for DocuSign’s services, as remote work became the norm and virtual signing of deals and documents became essential, per the report. However, as workers returned to offices and concerns about rising inflation and a potential recession emerged, the demand for eSignature technology eased faster than expected.

Despite the recent slowdown, DocuSign has performed well, with its quarterly revenue for the period ended Oct. 31 surpassing market expectations with a 9% increase, according to the report. The company also achieved profitability during this period.

The potential sale comes at a time when private equity firms have been less active due to a gap between buyer and seller price expectations, as well as elevated interest rates making deals more expensive, the report said. Leveraged buyouts, in particular, have declined by approximately 30% this year.

In one recent development at DocuSign, the firm said in November that it has teamed with WhatsApp to let businesses close deals via the messaging app. With the new WhatsApp Delivery, which integrates DocuSign’s eSignature with the app, users can send real-time notifications that link directly to agreements and allow for fast and secure signing.

In July, DocuSign launched an enhanced identity verification offering that uses artificial intelligence (AI)-enabled biometric checks to confirm that people signing documents are who they say they are and that their IDs are valid.