Madison Parker Capital said Wednesday it has sold Venyu to EATEL. Financial terms weren’t announced. Baton Rouge, La.-based Venyu provides data center, managed hosting, cloud, virtualization and data protection services.
MENLO PARK, CA–(Marketwired – September 04, 2013) – Madison Parker Capital (“Madison Parker”), a private equity firm focused on the lower middle market, is pleased to announce it has successfully sold one of its portfolio companies, Venyu, to telecommunications service provider, EATEL, less than three years after acquiring the company. Madison Parker acquired Venyu, formerly a business unit of PHNS, in October 2010 in partnership with Management and Gladstone Investment Corporation.
“We are very pleased with the sale of Venyu and are confident that the Company will continue its impressive growth rate,” said Brent Brown, a Managing Partner of Madison Parker. “This sale represents an exceptional return for our partners, generating an 84.3% annual internal rate of return, and we are grateful to Scott Thompson and the Venyu management team for their hard work and dedication.”
Scott Thompson, CEO of Venyu, added, “Madison Parker provided the type of strategic leadership that has been critical to our success since being divested by PHNS. Madison Parker’s proactive approach and financial commitment to growing our business model has been a key success factor.”
This is Madison Parker’s third liquidity event in the past twelve months, and the fifth overall since its founding in 2006. To date, Madison Parker has produced average returns of approximately 6.5 times partners’ invested capital.
About Venyu Venyu is a premier provider of data center, managed hosting, cloud, virtualization and data protection solutions. By leveraging Venyu’s portfolio of innovative, ROI-focused solutions, including VenyuCloud and RestartIT within secure, highly available data centers, organizations can reduce IT costs while increasing security and scalability. For more information about Venyu and its industry-leading offerings, please visit www.venyu.com. Your Data Made Invincible™.
About Madison Parker Capital Madison Parker Capital is a Menlo Park based investment firm focused exclusively on partnership-oriented investments in lower middle market companies. Madison Parker works with existing management teams, as well as experienced executives, to sponsor minority and majority recapitalizations, growth and consolidation transactions in a wide range of industries including business services, software, industrial/manufacturing, digital media/publishing and consumer/retail. Madison Parker targets companies with operating profits between $1 million and $10 million, with investment sizes ranging from $3 million to $30 million. For more information on Madison Parker Capital, please go to www.madisonparkercapital.com.