Virtual Clarity

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to Virtual Clarity, the leading cloud transformation consultancy, on its sale to DXC Technology Company (NYSE: DXC). This follows DXC’s strategic investment in Virtual Clarity in 2017 on which Silverpeak was also lead adviser.

Virtual Clarity is Silverpeak’s 7th transaction in the last 6 months.

Founded in 2008, Virtual Clarity is based largely in the U.K. and U.S. The company is comprised of a blend of enterprise IT insiders and hands-on experts with deep knowledge of modern tools, techniques and key industries – including Financial Services, Health Care, Manufacturing, and Telecommunications.

The acquisition of Virtual Clarity aims to further position DXC as a leading provider of IT Modernization services for applications and infrastructure. This builds on DXC’s acquisition earlier this year of Luxoft as clients increasingly are seeking industry-specific application development and innovation as part of their IT modernization approach.

Silverpeak worked with the Virtual Clarity board as adviser on their journey to a strategic realisation. We approached global strategic buyers and PE growth investors. Having secured multiple Tier 1 offers, we managed the process to a tight completion timetable.

Paddy MccGwire, Managing Partner at Silverpeak leading the deal added “We are delighted to have advised Steve on this fourth transaction. Steve and his team at Virtual Clarity have built a great business and will be able to accelerate its impact to leave a footprint in the sand, reporting directly to the DXC CEO.”

Steve Peskin, CEO and founder of Virtual Clarity said, “This is my fourth transaction with Paddy and his team, starting 20 years ago. He has always outperformed but this time Paddy, Matteo and their team absolutely nailed it. From first offer to completion in 50 days, and from LOI in only 19 business days, was always going to be a monumental task but they pulled it off masterfully with calming humour, great expertise and advice and nerves of steel. Bravo! ”

Sentryo

Sentryo is the pioneer in solutions dedicated to managing the cyber risk of M2M networks and industrial control systems. Sentryo’s ICS CyberVision empowers control engineers as the front line of defence to ensure integrity, continuity and security of their industrial processes. It leverages unique AI algorithms to give them comprehensive visibility on their industrial assets, so they can easily identify vulnerabilities, detect anomalies in real-time and work with IT to fight cyber-attacks. Sentryo’s ICS CyberVision is used every day by large corporations in the energy, manufacturing and transportation markets.

Silverpeak originally worked with Sentryo on a fundraising round during which time we assisted management in developing a comprehensive long term strategic growth plan to become the de facto leader in Europe and enter the US market. Shortly thereafter Sentryo were approached by a strategic buyer and again as lead adviser, Silverpeak were appointed to map the marketplace, identify and contact potential buyers and negotiate a transaction through to final completion.

Thierry Rouquet, CEO of Sentryo said, “Silverpeak have been the long-term corporate finance advisers to Sentryo, and helped engineer the previous round of financing based on an ambitious international drive. When Sentryo was approached unexpectedly they were once again ready to help and conducted a rapid scan of interested parties before helping us negotiate the win-win deal with Cisco. During this whole process, Silverpeak always acted speedily and professionally. We especially appreciated their international reach as well as the local support. To be honest, at many junctures, they helped us to convince our shareholders of the considerable potential of Sentryo, resulting in a price which, in many ways, went beyond our expectations.”

As a serial entrepreneur, Thierry knew the ropes and had a clear objective of building a world leader in the cybersecurity sector applied to industry. From starting the business to reaching a leadership position in Europe and to joining forces with the world leader in networking (and the inventor of the Internet of Everything moniker) took just 5 years, which is a credit to the team and its backers. Along the way, Silverpeak helped keep the ambition alive through funding first and then the Cisco transaction, which proved to be a fantastic exit for the financial shareholders, as well as a great recognition for the team and the resources of a large firm to continue with their vision.

Throughout the journey, Silverpeak delivered steadfast support maintaining the level of ambition required in the face of startup competitors who were raising up to 10x more funds than Sentryo who, in the end, proved to be the most capital efficient of all. The Cisco transaction demonstrates we were right in supporting Sentryo and its backers, and shows, once again, the value of Silverpeak’s technology specialisation as well as its efficient delivery across Europe.

This is the fifth transaction that Silverpeak has completed in the last three months.

Choice

Maxxton is a software as a service (SaaS) solution to simplify the operational and reservation processes for hospitality managers. Its enterprise resource planning (ERP) platform caters specifically to the needs of the short & medium-term accommodation rental sector. Maxxton automates time-consuming manual work, improves efficiency, increases bookings and reduces staffing costs for hospitality organisations.

Silverpeak worked as lead adviser to map the marketplace, identify and contact potential buyers and negotiate a transaction through to final completion. We approached both strategic & financial buyers globally and closed the transaction with Fortino to continue building the business with the CEO.

Justin Stebbins, Director, added “This transaction represents the most logical next step for all parties involved and Fortino will strategically assist management during its next stage of growth.”

Paddy MccGwire, the Managing Partner at Silverpeak leading the process added “We are delighted to have advised on this transaction – further strengthening our position in hospitality software.”

Scality

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to Scality, a leader in software for distributed file and object storage and multi-cloud data control, on an additional $60 million round of funding to continue executing on its technology innovation strategy as it makes multi-cloud real for its customers.

This latest funding round, which brings the company’s total funding to date to $152 million, includes participation from all existing investors, Scality staff, and a new investor, Harbert European Growth Capital.

Recognized as a leader in distributed file and object storage by Gartner and IDC, Scality builds the most powerful storage tools to make data easy to protect, search and manage anytime, on any cloud. It gives customers the freedom and control necessary to be competitive in a data driven economy.

Silverpeak worked with the company as lead adviser to identify and contact potential investors and negotiate a transaction through to final completion. Silverpeak had a key role in helping Scality to articulate its story to investors, in terms of both strategic positioning and financial trajectory. Silverpeak approached a broad range of international investors to support the growth of the company and the launch of its multi-public cloud product Zenko. The process helped the company target both growth investors and large venture funds willing to back the new product.

The syndicate assembled reflects the performance of the company and its growing role in helping clients make best use of different public cloud providers.

Jerome Lecat, CEO of Scality said, “Silverpeak proved invaluable in approaching investors in all geographies. They really helped in refining the Scality story and packaging it in a way that was easily understood by investors. Working with Silverpeak was seamless, especially working on a cross-Atlantic situation such as Scality and that proved a successful combination.”

Jean-Michel Deligny, the Managing Director at Silverpeak leading the process added, “Scality is unique as the only independent software vendor in data management software which has made it to the top quadrant in Gartner’s research. The challenge of the fund-raising was to get recognition from investors while Scality is in the process of launching its industry-first multi-public cloud SaaS product. The syndicate supports this continuing expansion of the company, which already operates successfully in Europe, the US and Japan.”

Marlin

Cake

Virtual Clarity

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to Virtual Clarity, a leading provider of IT-as-a-Service (ITaaS) transformation strategy and leadership, on its investment by Computer Science Corporation (NYSE:CSC), a global leader in next-generation IT services and innovative cloud solutions.

Under the terms of the agreement, CSC will make an undisclosed investment in Virtual Clarity to accelerate the company’s leading transformation consulting services targeting the Financial Services, Insurance, Telecom, and Manufacturing industries. Virtual Clarity will become a Strategic Affiliate of CSC and will collaborate on joint go-to-market pursuits with CSC.

Virtual Clarity has significant knowledge and experience in helping global clients solve large, complex business problems and building lasting value for customers and partners. Its ClearTransformation service enables companies to accelerate business innovation, overcoming the inertia of legacy IT by transforming the traditional IT operating model to nimble IT-as-a-Service. Last year, Virtual Clarity has exceeded 35% annual growth with over half the revenues coming from clients in North America.

Silverpeak acted as the sole advisor to Virtual Clarity, leading the process with parties across three continents, advising the company through all phases of the deal, and negotiating the transaction to achieve a successful outcome for all parties.

Steve Peskin, CEO of Virtual Clarity commented “The strategic options for companies like ours, including trade sale, are getting more innovative in a world where collaboration (replacing ownership) and preserving culture are recognised as key components of value creation. Without expert advice on the complexities of new, innovative ways of unlocking the value in their business management will start to struggle to understand the options, choose the right one and execute the right transaction in the right way which will include explaining it to shareholders. That’s why we used Silverpeak. It worked.”

Virtual Clarity’s Chairman Charles Grant said “We have collaborated very successfully with Paddy MccGwire on a number of occasions. The genial manner, combined with a practical and meticulous approach has been a winning formula for us. It’s great working with the Silverpeak team.”

Paddy MccGwire, the Managing Partner at Silverpeak leading the process, said “We are delighted to have worked with the team again, who have created a fairly unique asset. This hybrid strategic investment and partnership by CSC will provide access to resources and customers with aligned objectives that can catapult the growth rate of the business further.”

Silver Lining Solutions

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to Silver Lining Solutions Ltd, a provider of industry-leading employee performance optimisation software, which has been acquired by Genesys®, the global leader in omnichannel customer experience and contact centre solutions.

Silver Lining Solutions develops employee performance optimisation software that helps improve employee engagement and performance, enabling organisations to serve customers better, increase sales and operational effectiveness, and reduce costs. The award-winning UK-based company was founded in 2001 and has offices in the UK, Asia Pacific and the United States.

The acquisition of Silver Lining Solutions will further expand Genesys’ capabilities to help organisations elevate employee engagement and improve business results related to sales, collections, workforce productivity, and customer satisfaction.

Silverpeak were the lead adviser on the transaction initiating the process with global strategic acquirers, advising management and the three institutional shareholders, and negotiating the transaction through to final completion. Terms of the deal were undisclosed.

Ed Wass, CIO at Catapult Ventures said “Silverpeak helped corral us over the line. This deal had some challenges, some I’ve seen before, some I haven’t. It needed great determination and not a little patience in sorting out the detail.”

Stephen Edwards, Chairman of Silver Lining Solutions commented “Obviously our first responsibility was to get the best possible return for our investors, and we have done that. However, we also had a duty to try to find a suitable result for our people, our product and our customers which we have achieved.”

Paddy MccGwire, the Managing Partner at Silverpeak leading the process, said “This is another enterprise software sale where we were dealing with strategic buyers from Israel, Europe and US, with San Francisco based Genesys winning the prize. There was an added complexity that three of the parties were either partners or OEMs that required careful management to protect the business.”

HIG Capital

Silverpeak, the technology investment bank, acted as the exclusive financial advisor to H.I.G. Capital (“H.I.G.”) and the management of the sub-sea division of Xtera Communications Inc (“Xtera”) on the acquisition of substantially all the assets of Xtera, a provider of innovative and bespoke sub-sea fiber optic solutions. Silverpeak supported H.I.G. who provided debtor-in-possession financing to the Xtera debtors in connection with the Chapter 11 case.

Established in 1998 and based in the UK (Harold Wood, Essex) and the US (Allen, Texas), Xtera supplies un-repeatered and repeatered sub-sea systems, using high performance optical amplifiers to carry data. Under H.I.G.’s ownership, Xtera’s management and technical team will remain at the helm of the business, focused on successfully executing key existing customer contracts and expanding the business in the rapidly growing markets it serves with a clear roadmap of disruptive product launches.

Thanks to their longstanding relationship, Silverpeak were appointed by the management of the sub-sea business line as exclusive advisors to find a financial sponsor, identifying H.I.G. as the most suitable partner based on their knowledge of the optical communications sector and belief in the management team.  Silverpeak also acted as exclusive financial advisors to H.I.G. providing financial advice through all phases of the transaction and working closely with Carl Harring, Managing Director at H.I.G. Capital.

Stuart Barnes, VP & GM of Xtera Sub-sea commented: “We selected Silverpeak because of their in-depth knowledge of the tech space, and in particular optical communications.  Throughout the process, they provided a great combination of intellect and pragmatism, which yielded a great result.”

Keith Henderson, COO of Xtera added that “The Silverpeak team are dedicated professionals with in-depth relationships in the technology market: without Silverpeak we would not have found a financial sponsor who could work to tight timelines and successfully close our MBO.  Silverpeak assisted us flawlessly from the beginning to the end of the transaction.”

Pietro Strada, the Managing Partner at Silverpeak leading the process, said “Our sector knowledge and relationships secured the trust of the management team and allowed us to find a formidable financial sponsor in H.I.G.  This transaction was complex and intense: the team here did an outstanding job at addressing the execution challenges.  We are delighted to have assisted H.I.G. and management in acquiring Xtera. The new business offers differentiated technology to submarine cable operators and no doubt will become a market leader in the years ahead.”