The ratings on Westlake, Ohio-based software vendor Hyland Software Inc. reflect its limited operational scale and relatively modest competitive position, with respect to much larger competitors with significantly more resources in the fragmented enterprise content management (ECM) industry. The company's predictable recurring revenue stream, stemming from high license renewal rates and favorable business segment growth, provides stability for the rating. Its limited revenue and EBITDA base and current ownership by a private-equity sponsor limit a possible upgrade. Hyland is a provider of ECM software solutions that enable organizations to manage, control, and share unstructured (text, images, emails, and digital content) and structured content. The company generally targets middle-market businesses. Its products are tailored for specific users and vertical markets, with
