Private equity firm Cyprium Investment Partners has completed a subordinated debt and equity investment in Network Hardware Resale. Terms of the deal were not released. NHR is a provider of pre-owned and new networking solutions, and the infusion will help the company refinance existing debt, as well as support operations and expansion efforts. NRH is based in Santa Barbara, Calif. Cyprium has offices in Cleveland and New York.
Cyprium Investment Partners LLC (“Cyprium”), a private equity firm focused primarily on non-control investments, announced today that it has completed a subordinated debt and equity investment in Network Hardware Resale LLC (“NHR”). The infusion will enable NHR, the leading provider of pre-owned and new networking solutions, to refinance existing indebtedness while providing capital to further fuel efforts relating to the next phase of the company’s expansion.
Headquartered in Santa Barbara, Calif., NHR is the world’s foremost independent supplier of used, pre-owned and new IT networking equipment, from leading networking vendors including Cisco, Foundry and Juniper. In addition, NHR offers its global customer base a compelling array of services and backs all its products with a standard, one-year replacement warranty.
“The Cyprium team really understood our vision and embraced our goals for the next phase of NHR’s expansion worldwide,” said Mike Sheldon, president and CEO of NHR. “The additional capital investment will support our continuing efforts to reinforce our global presence with top-quality products, state-of-the-art facilities and industry-leading services that best meet our customers’ network and budget requirements.”
Last month NHR announced major service enhancements to its NetSure family of comprehensive, fully managed network service and support programs, providing a one-stop resource for network monitoring, technical support and unprecedented assurance for multi-manufacturer network environments. The company also is tripling its inventory capacity and doubling the size of its corporate headquarters as a part of a move to new office and warehouse facilities. NHR also is increasing the capacity of its Amsterdam facility by nearly 50 percent to accommodate ever-increasing global customer demands.
“NHR presents a compelling investment opportunity for Cyprium,” said John Sinnenberg, Chairman of the firm. “Cyprium’s professionals have a long history of partnering with high-quality private companies, and we are excited to support a market leader like NHR.”
About Network Hardware Resale
Network Hardware Resale (NHR) is a leading provider of networking solutions that specialize in reducing IT costs. Based in Santa Barbara, Calif., the company is an independent reseller of pre-owned Cisco, Foundry and Juniper networking equipment as well as an authorized reseller of resilient, scalable equipment from Force10 Networks. NHR also offers cost-effective network management, asset management, alternative maintenance and technical support services. Founded in 1986, NHR provides global sales and technical support from its Santa Barbara, Dallas metro, New York City metro, Amsterdam, London and Singapore locations. Organizations worldwide purchase quality networking equipment from NHR, including Global 1000 companies, small and mid-sized enterprises, government entities, educational institutions, healthcare organizations and telecommunications service providers.
About Cyprium Partners
Cyprium Partners (Cyprium) is a private equity firm focused primarily on non-control (minority ownership) investments. Cyprium typically utilizes a combination of subordinated debt, preferred stock and/or common stock to enable family owned businesses, entrepreneurs and management teams to achieve their financial and/or strategic objectives. Cyprium will also selectively invest in control (majority ownership) positions. With offices in Cleveland and New York, the firm invests $10 million to $40 million per transaction in privately-held companies based in the U.S. and Canada that have $8 million or more of EBITDA. The company is currently investing out of its third fund, which has $500 million of committed capital from investors including pension funds, insurance companies, fund-of-funds, family offices and entrepreneurs who the firm has backed in previous investments.