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.”

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.”

Magic Pony Technology

Twitter has acquired Magic Pony Technology, a London-based technology company that has developed novel machine learning techniques for visual processing.

The acquisition of Magic Pony builds on other investments Twitter has made in machine learning, beginning with the acquisitions of Madbits in July 2014 and Whetlab in June 2015.

Magic Pony’s technology – based on research by the team to create algorithms that can understand the features of imagery – will be used to enhance Twitter’s strength in live and video.

The Silverpeak team, led by Pietro Strada, advised Octopus, who were the largest institutional investor in Magic Pony following an initial investment in the summer of 2015 and a further funding round earlier this year. Terms were undisclosed.

m2fx

m2fx, a fibre-optic cable manufacturer has been acquired by PPC Broadband, a Belden company headquartered in Syracuse, New York, for an undisclosed sum.

Based in Framlingham, Suffolk, in the UK, m2fx’s first product was a fibre protection tube designed to prevent fibres from kinking. Since then the company has expanded into the fibre-to-the-premises (FTTP) market with the Miniflex range of pushable fibre-optic cables. Other products include fibre cable designed for aerial deployment and low-friction duct for blown fibre installation.

‘This is a merger of two innovative companies which have complementary product lines,’ said Tom Carter, managing director of m2fx. PPC Broadband is a leader in cable and wireless broadband connectivity products, while m2fx specialises in fibre-optic cabling for the telecom market.

Belden, which acquired PPC Broadband in December 2012, is a market leader in the industrial components and fixtures industry, with revenues of more than $2 billion.

Over the coming weeks, m2fx branding will disappear as the company becomes part of the PPC Broadband family – although its product brands such as Miniflex and Quikpush will remain.

Silverpeak acted as lead advisor to the vendor shareholders, working with them to map the marketplace, prepare the company, identify and contact potential buyers worldwide, and negotiate the transaction through to final completion.

Anita Hamilton, Managing director of Linnaeus Capital Partners said “The Silverpeak team provided a proactive and efficient advisory sale service, which fully covered commercial, financial and legal issues.”