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Goldman Sachs Invests $100 Million in APT Cloud-Data Business

Applied Predictive Technologies, a maker of cloud-based data-analysis software, received a $100 million investment from Goldman Sachs Group Inc. to expand internationally and enhance its tools for predicting trends.

The investment is the largest since Arlington, Virginia-based APT was founded 14 years ago. The company, which counts Wal-Mart Stores Inc. and McDonald’s Corp. (MCD) among its customers, uses data analysis to measure the effect of advertising, pricing and other initiatives on company profitability. With the new funding, APT plans to open an office in Japan and take on more clients, said Chief Executive Officer Anthony Bruce.

While banks leery of security issues have been late adopters of Internet-delivered cloud technology, Goldman Sachs is betting they will eventually embrace the concept, said David Campbell, an executive at the bank. International Business Machines Corp. (IBM) and Oracle Corp. (ORCL) also offer analytics services and sales in that market may grow to $23.8 billion in 2016, at an annual rate of 32 percent, according to IDC.

“This is a way to ensure as the technology develops over the next decade we’re in a position to use them and apply them to our business,” Campbell, a vice president in Goldman Sachs’s merchant banking division, said in an interview.

Goldman Sachs, the fifth-biggest U.S. bank by assets, isn’t currently an APT client, the company said.

APT is considering an eventual public offering, according to Robert Palumbo at Accel-KKR, which invested $54 million in APT in 2006. The closely held company, which has more than 100 clients, declined to disclose revenue.

To contact the reporter on this story: Sarah Frier in New York at sfrier1@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

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