TA Associates and Management Complete Acquisition of CoSentry
TA Associates, a leading global growth private equity firm, today announced it has completed the acquisition of CoSentry, an Omaha-based provider of outsourced IT infrastructure services. TA partnered with CoSentry management to acquire the company. Financial terms of the investment were not disclosed.
Selling shareholders include McCarthy Capital, an Omaha-based private equity fund, and WaittCorp Investments, an Omaha-based investment company.
Founded in 2000, CoSentry offers a full complement of business continuity and resiliency services, supporting complex IT solutions for enterprise clients. The company provides data center services (colocation, hosting, managed Internet access), managed services (24/7 help desk, network monitoring, compliance), cloud computing (virtual servers, disk backup, storage), security and disaster recovery. CoSentry’s facilities include one of the few commercially available hardened Tier IV data centers in the United States, engineered for nearly 100% reliability. The company has earned multiple technical and regulatory certifications, helping its clients meet security and compliance requirements. CoSentry has facilities in Nebraska, Missouri and South Dakota.
“As a profitable and rapidly growing technology company with a seasoned management team, CoSentry is precisely the type of business in which TA seeks to invest,” said Harry D. Taylor, a Principal at TA Associates who will join CoSentry’s Board of Directors. “CoSentry has been repeatedly recognized as one of the country’s fastest growing Internet infrastructure businesses. We will work closely with management to continue that growth and help realize CoSentry’s full potential.”
“TA Associates has a well-earned reputation as a successful investor, helping businesses create substantial value for the future,” said Michael Steffan, President and CEO, CoSentry. “This partnership is validation of the soundness of our business model and prospects for continued success. With their financial support, experience investing in technology companies, strategic guidance and significant network of contacts, we anticipate a fruitful and mutually beneficial relationship with TA.”
CoSentry’s customers span a variety of industries and range from Fortune 100 companies to regional and local businesses across the country. CoSentry’s Midwest location offers a number of benefits to its customers, including competitive power costs compared to other U.S. markets.
“CoSentry is a leader in its markets and has differentiated itself as a premier, high-quality provider of IT services,” said Kenneth T. Schiciano, a Managing Director at TA Associates who will also join CoSentry’s Board of Directors. “With comprehensive customized solutions, nearly 100% uptime dependability and a client-focused culture, CoSentry has consistently done very well in attracting and retaining a diverse and quality customer base. We anticipate that trend will continue.”
"McCarthy Capital has enjoyed its partnership with CoSentry," said Patrick Duffy, Partner at McCarthy Capital and former CoSentry Board Member. “It has been a great and meaningful experience for us to support and enhance CoSentry management's vision to grow the business from a local operation into a nationally recognized company. We wish the management team and company continued success."
TA Associates has more than four decades of investing experience, focusing on profitable growth companies. TA’s prior investments in the telecommunications and software sectors include AboveNet, IntraLinks, McAfee, MetroPCS Communications, NetScout Systems, Network Appliance, Sophos Plc and WIND Telecom S.p.A.
Signal Hill Capital Group LLC initiated this transaction and provided financial advisory services to CoSentry and Koley Jessen P.C., LLO served as legal counsel to CoSentry. Goodwin Procter LLP provided legal counsel to TA Associates.
CoSentry serves as a one-source provider of data center, cloud computing and managed technical services. For over 10 years, CoSentry has been helping clients create and protect technology platforms to compete in today’s always-on business environment. Market leaders benefit from CoSentry’s world-class services to keep their businesses running – no matter what. The company also provides diverse and robust colocation and managed Internet services. CoSentry has facilities in Kansas City, MO; Sioux Falls, SD; Papillion, NE; and Omaha, NE. For more information, please visit www.CoSentry.com.
About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced middle-market growth private equity firms. The firm has invested in over 400 companies globally and has raised more than $16 billion in capital. With offices in Boston, Menlo Park, London, Mumbai and Hong Kong, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.
About McCarthy Capital
McCarthy Capital is an Omaha-based private equity firm focused exclusively on lower middle market companies. For more than 25 years, the McCarthy organization has been partnering with founders, families and exceptional management teams to support the growth of their companies as a minority or majority partner. The Firm manages approximately $500 million of investment capital and typically invests $10 to $50 million of equity in a mix of growth equity investments, recapitalizations and management buyouts across a wide range of industries. More information about McCarthy Capital can be found at www.mccarthycapital.com