Datapipe, a provider of enterprise IT services, said Tuesday that it closed on $176 million in equity and debt financing. The equity investment comes from ABRY Partners. The debt financing comes from a syndicate of lenders led by TD Securities as agent, joined by Brown Brothers Harriman, CapitalSource, Caterpillar Financial, CIT Group, GE Capital, ING and Raymond James Financial. Datapipe will use the new money for expansion. Datapipe is based in New Jersey.
Datapipe, a leading provider of enterprise ready, mission-critical IT services, announced today that it has secured $176 million in combined equity and credit financing. In conjunction with receiving a significant equity investment from ABRY Partners, Datapipe secured a new Senior Secured Credit Facility from a syndicate of lenders led by TD Securities as agent, joined by Brown Brothers Harriman, CapitalSource, Caterpillar Financial, CIT Group, GE Capital, ING and Raymond James Financial. DH Capital, LLC served as exclusive financial advisor to Datapipe for this transaction. The facility substantially increases Datapipe’s borrowing capacity and its ability to accelerate expansion plans.
“We are focused on enabling enterprises to outsource their mission-critical IT with confidence. This funding allows us to continue to grow and expand our services and solutions to meet our customers’ global needs,” said Robb Allen, CEO of Datapipe. “Datapipe and our clients will benefit from the compelling combination of ABRY Partners’ deep expertise and the stability of TD Securities.”
“We are very excited to be partnering with Datapipe as they embark on their next phase of growth. Datapipe possesses all the high quality characteristics we look for in businesses we invest in and we are delighted to have them as part of the ABRY portfolio,” said Brian St. Jean, Principal at ABRY Partners.
“TD Securities is pleased to have had the opportunity to work with Datapipe and ABRY Partners in this recapitalization transaction. Management has done a tremendous job developing the business to-date and we see significant growth opportunities with the accelerated deployment of capital into the business plan. We look forward to continuing to support management and their growth initiatives going forward,” said Dan DeAlmeida, Director at TD Securities.
Datapipe offers a single provider solution for managing and securing mission-critical IT services, including cloud computing, infrastructure as a service, platform as a service, colocation and data centers. Datapipe delivers those services from the world’s most influential technical and financial markets including New York metro, Silicon Valley, London, Hong Kong and Shanghai. Datapipe was named Growth Company of the Year in 2009 by the New Jersey Tech Council. In 2010 Datapipe was named to Gartner’s Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting. Datapipe is a member of the EPA Green Power Leadership Club. For more information about Datapipe visit www.datapipe.com or call (888) 749-5821.
About ABRY Partners, LLC
ABRY is one of the most experienced and successful media, communications, and business information services sector-focused private equity investment firms in North America. Since 1989, ABRY has completed over $27 billion of leveraged transactions and other private equity, mezzanine or preferred equity placements.
ABRY is currently investing ABRY Partners VII (a $1.6 billion fully-capitalized traditional private equity fund), ABRY Senior Equity III (a $750 million fully-capitalized senior equity/mezzanine fund) and ABRY Advanced Securities Fund II (a $1.2 billion fully-capitalized senior debt fund). ABRY has developed a strong presence in the data center sector through its acquisitions and investments in CyrusOne, Hosted Solutions, Q9 Networks, Sentrum Holdings and Datapipe.
About TD Securities
As a leading corporate and investment bank, TD Securities provides a wide range of capital market products and services to corporations, governments and institutions. Our clients choose us for our knowledge, innovation and experience in the following key areas of finance: investment, corporate and government banking, capital markets, interest rate, currency and derivative products. TD Securities works with clients around the world, and our services include the underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, and executing daily trading and investment needs.
About DH Capital, LLC
DH Capital is a private investment banking partnership serving companies in the Internet infrastructure and communications sectors. Headquartered in New York City with offices in Boulder, Colorado, the firm’s principals have extensive experience and proven abilities in capital formation, finance, research, business development, and operations. DH Capital provides a full range of advisory services to companies and financial institutions, including mergers and acquisitions, private capital placements, financial restructuring, and operational consulting. DH Capital has completed M&A transactions and private capital placements totaling more than $4 billion in value.