Stratus Technologies to be acquired by Siris Capital Group
Stratus Technologies is to be acquired by an affiliate of Siris Capital Group in a transaction valued at approximately USD352m.
"This is the right deal at the right time for Stratus," says Dave Laurello, president and CEO, Stratus Technologies. "It is a clear endorsement of our strategy, our products and our people. Together we will continue to transform Stratus and take our industry-leading technology and solutions to a broader market, including the cloud."
"We are impressed by Stratus' 30 year track record of providing always-on capabilities for customers' most mission critical applications and are excited by the company's strategy for taking this experience into software and the cloud," says Dan Moloney, Siris Capital executive partner. "We look forward to supporting Stratus in providing continued world-class availability solutions and aiding in the expansion of these solutions into the cloud."
Siris is a private equity firm focused on making control investments in data/telecommunications, technology and technology-enabled business service companies in North America. Siris, coupled with its active limited partner co-investment programme, targets complex, special situations from USD250m to USD1bn.
By the terms of the agreement, it is contemplated that upon the closing of the acquisition, all of the outstanding principal amount of senior secured notes of Stratus will be called for redemption, at a redemption price of 112 per cent plus accrued and unpaid interest through the redemption date, and all of the outstanding amounts under the senior secured revolving and second lien credit facilities of Stratus will be repaid in full.
The closing of the acquisition is subject to certain customary closing conditions that are specified in the agreement, including the receipt of shareholder and regulatory approvals.
Siris has secured committed financing consisting of a combination of equity and debt. The equity financing will be provided by an investor group led by Siris and the debt financing will be arranged by SunTrust Robinson Humphrey and Macquarie Capital (USA).
Jefferies served as exclusive financial advisor to Stratus and Gibson Dunn & Crutcher is acting as legal counsel to Stratus. Wells Fargo Securities and Macquarie Capital (USA) are acting as M&A advisors to Siris and Simpson Thacher & Bartlett is acting as legal advisor to Siris.
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