Gatineau, Quebec-based Adaptive Networks, which manages multi-site computer networks using SD-WAN technology, has secured $1.5 million in funding. The investor was BDC Capital‘s Growth & Transition Capital division. The capital will be used to support the company’s plan to increase its annual recurring revenues nine-fold over the next five years.
OTTAWA and GATINEAU, November 21, 2019—Adaptiv Networks, which manages multi-site computer networks using software-defined wide area network technology (SD-WAN), has secured non-dilutive growth financing of $1.5 million from BDC Capital’s Growth & Transition Capital division. The funds will support the execution of an ambitious plan to increase the Gatineau-based company’s annual recurring revenues nine-fold over the next five years. CEO Bernard Breton, a seasoned telecommunications industry executive, was hired by Adaptiv’s Board of Directors a little over a year ago to lead this growth.
BDC Capital’s financing is tailored to preserve much of Adaptiv’s working capital in order to provide the cash runway it needs to execute its plan. The funds will largely serve to bolster Adaptiv’s team in order to expand the company’s channel partner network through which the company is now focusing its sales efforts. Adaptiv’s channel partners currently count large communications providers like SkySwitch and Allstream.
“Digital transformation is creating tremendous opportunities across all industries, but cloud connectivity and network complexity are creating barriers to business growth. This is especially true for companies with smaller IT budgets,” explains Adaptiv Networks CEO, Bernard Breton. “Our managed SD-WAN solutions provide agile cloud connectivity so that businesses of any size can cost-effectively accelerate their digital transformation by increasing the performance and reliability of their cloud applications.”
SD-WAN is a new technology that increases the speed and reliability of multi-site computer networks that connect to cloud services, while simplifying their management and reducing their operating costs. The global SD-WAN market is expected to grow 40% a year until at least 2022. Adaptiv’s target market is small to mid-sized organizations in North America that are looking for simple IT solutions. These include retail stores, restaurant chains, health clinics and manufacturers.
This financing was arranged by Sean Crouse, Director, Growth & Transition Capital at BDC Capital’s Ottawa office. “Under Bernard Breton’s experienced leadership, Adaptiv has promisingly positioned itself as a niche player in the high-growth SD-WAN market,” observes Crouse. “We are confident that Adaptiv’s strategy to capitalize on this growth is sound and that the management team has the abilities to implement it.”
About Adaptiv Networks
Adaptiv Networks is the creator of powerful, software-defined wide-area networks (SD-WANs) for the most challenging locations requiring high availability for business-critical application traffic. Businesses rely on Adaptiv Networks’ software-defined network to provide secure, lower-cost, higher-performance and more reliable cloud networks for their voice, data, and video communications needs. Adaptiv Networks serves more than 200 customers, with more than 2,500 sites deployed through 25 Partners across North America. Adaptiv Networks has been delivering software-defined solutions since 2002. Visit adaptiv-networks.com.
About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With more than $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.