Welsh, Carson, Anderson & Stowe has sold Peak 10 for $730 million. WCAS generated sale proceeds of $363 million.
Welsh, Carson, Anderson & Stowe (the “Firm” or “WCAS”), a private equity firm exclusively focused on information/business services and healthcare, announced that it has completed the sale of its portfolio company, Peak 10, Inc. (the “Company”) for $730 million. WCAS generated sale proceeds of $363 million, which were distributed in June. Peak 10 also completed a dividend recapitalization in October 2012, and WCAS received $190 million.
WCAS completed its acquisition of Peak 10 in October 2010. The Company is a leading provider of hybrid IT infrastructure, cloud solutions and managed services to small and medium-sized enterprises, and currently operates 23 data centers in 10 metropolitan markets across 7 states within the southeastern U.S. WCAS leveraged its expertise in the sector from a former investment in Savvis, Inc. both in sourcing and completing the Peak 10 investment.
“We are very proud of our partnership with Peak 10’s management since 2010 and Peak 10’s continued leadership position in the industry.” said Eric J. Lee, General Partner at Welsh, Carson, Anderson & Stowe. “The Company delivered terrific performance and we believe is well-positioned for its next phase of growth.”
WCAS has continued to recognize the strong public and private markets in recent years, taking the opportunity to pursue attractive exits. During the first half of 2014, WCAS sold Solstas Lab Partners in addition to Peak 10 and completed the initial public offerings of Paycom Software, Inc. (NYSE:PAYC), and K2M Group Holdings, Inc. (Nasdaq:KTWO). In the last eighteen months, WCAS has generated net liquidity of $2.4 billion. This has resulted in WCAS investors receiving $3.62 of distributions for every $1 of capital called since 2013.
About Welsh, Carson, Anderson & Stowe
Welsh, Carson, Anderson & Stowe focuses its investment activity in two target industries, information/business services and healthcare. Since its founding in 1979, the Firm has organized 15 limited partnerships with total capital of $20 billion. The Firm is currently investing an equity fund, Welsh, Carson, Anderson & Stowe XI, L.P.