NewSpring Capital, the Pennsylvania-based private equity firm, invested an unspecified amount in Raritan Inc., the New Jersey-based power management and efficiency firm, from its Newspring Growth Capital II Fund. Marc Lederman will join Raritan’s Board of Directors in conjunction with NewSpring’s investment.
RADNOR, Pa., and SOMERSET, N.J., Jan, 18, 2011 — Raritan Inc. today announced that NewSpring Capital (“NewSpring”), a leading provider of private equity capital in the Mid-Atlantic region, has made an investment to support Raritan’s growing power management business that helps companies improve energy efficiency and operations in their data centers. Funds were provided through NewSpring’s growth equity fund — NewSpring Growth Capital II, L.P.
Raritan plans to use the investment proceeds to facilitate its rapid and accelerating growth in the data center power management market through the development of new products and expansion into additional geographies.
As a leading provider of secure IT infrastructure management solutions, Raritan entered the power management solutions business three years ago to help companies monitor and manage the energy usage of servers and other IT devices in their data centers. Raritan’s power management solutions include award-winning software offerings — Power IQ® and dcTrack™ — and the industry’s largest portfolio of intelligent power distribution units that uniquely provide detailed, accurate energy information.
Raritan’s intelligent power distribution units and energy management software are used by customers of all sizes, from local organizations to leading Fortune 500 companies, and across every industry.
“We are in the enviable position of experiencing rapid growth in our power management business, and having world-class customers — such as ADP, Cisco, Deutsche Bank, eBay and Royal Caribbean — embrace our power solutions,” said Bob Dennerlein, Raritan Chief Financial Officer. “We are delighted to have NewSpring Capital, which is synonymous with innovation and in creating value, help us on our growth path. It is a major vote of confidence in the growth potential of the power management space and in Raritan’s ability to deliver technology innovation to this market.”
“For the past 25 years, a key driver of our success has been constant innovation. Our vision of providing IT management solutions that alleviate major data center pain points has led us into the power management sector where energy costs have become an ever increasing pressure on our customers. We look forward to working with NewSpring as we go through the next evolution of our business. NewSpring brings a breadth of knowledge and resources in the IT sector that should prove invaluable throughout our partnership as we continue to build Raritan into the leading provider of power management hardware and software,” said Ching-I Hsu, Chairman and Chief Executive Officer of Raritan.
“Raritan has a demonstrated track record of developing IT infrastructure solutions that are highly valued by its customers. Ching-I is a true visionary who has shown the ability to identify the latest IT infrastructure challenges and lead his organization to effectively address those demands,” said Marc R. Lederman, a General Partner of NewSpring. “The Company has achieved significant traction in the power management market by delivering high quality products with superior functionality in conjunction with industry leading service. We look forward to working with Raritan’s management team as the Company continues to expand its comprehensive portfolio of power management hardware and software products.” Marc Lederman will join Raritan’s Board of Directors in conjunction with NewSpring’s investment.
About NewSpring Capital
NewSpring Capital is a family of private equity funds providing growth and expansion capital to companies primarily in the Mid-Atlantic region. NewSpring Capital currently has over $600 million of assets under management. The family of NewSpring Capital funds consists of (i) NewSpring Health Capital, which provides equity capital to healthcare companies within the healthcare services, specialty pharmaceuticals and medical device sectors, (ii) NewSpring Mezzanine Capital, which provides mezzanine capital for expansion stage and buyout opportunities in the business services, healthcare, information technology, and specialty manufacturing sectors, and (iii) NewSpring Growth Capital, which provides equity capital to growth and expansion stage companies with a focus on business services, enabling technology and information technology. NewSpring Capital has offices in Radnor, PA, Short Hills, NJ, and Washington, DC. To learn more about NewSpring Capital, please visit www.newspringcapital.com.
Raritan is a proven innovator of power management, infrastructure management, KVM and serial solutions for data centers of all sizes. In more than 50,000 locations worldwide, Raritan’s award-winning hardware and software solutions — including intelligent PDUs, energy management software, KVM-over-IP and Serial-over-IP access products — provide IT and facility directors, managers and administrators with the control they need to increase power management efficiency, improve data center productivity and enhance branch office operations. Based in Somerset, NJ, Raritan has offices worldwide serving 76 countries. For more information, visit www.raritan.com. Raritan is an active member of the Green Grid, Climate Savers Computing Initiative, and the Leadership in Energy and Environmental Design associations. The company has been recognized by the EPA for its contribution to the agency’s data center initiative.