TA Associates, a global growth private equity firm, has completed the acquisition of CoSentry, an Omaha-based provider of outsourced IT infrastructure services. TA partnered with CoSentry management to acquire the company. Financial terms of the investment have not been disclosed.
Selling shareholders include McCarthy Capital, an Omaha-based private equity fund, and WaittCorp Investments, an Omaha-based investment company.
Founded in 2000, CoSentry offers a full complement of business continuity and resiliency services, supporting complex IT solutions for enterprise clients. The company provides data center services (colocation, hosting, managed Internet access), managed services (24/7 help desk, network monitoring, compliance), cloud computing (virtual servers, disk backup, storage), security and disaster recovery. CoSentry’s facilities include one of the few commercially available hardened Tier IV data centers in the United States, engineered for nearly 100% reliability. The company has earned multiple technical and regulatory certifications, helping its clients meet security and compliance requirements. CoSentry has facilities in Nebraska, Missouri and South Dakota.
“As a profitable and rapidly growing technology company with a seasoned management team, CoSentry is precisely the type of business in which TA seeks to invest,” said Harry D. Taylor, a Principal at TA Associates who will join CoSentry’s Board of Directors. “CoSentry has been repeatedly recognised as one of the country’s fastest growing Internet infrastructure businesses. We will work closely with management to continue that growth and help realise CoSentry’s full potential.”
“TA Associates has a well-earned reputation as a successful investor, helping businesses create substantial value for the future,” says Michael Steffan, President and CEO, CoSentry. “This partnership is validation of the soundness of our business model and prospects for continued success. With their financial support, experience investing in technology companies, strategic guidance and significant network of contacts, we anticipate a fruitful and mutually beneficial relationship with TA.”
CoSentry’s customers span a variety of industries and range from Fortune 100 companies to regional and local businesses across the country. CoSentry’s Midwest location offers a number of benefits to its customers, including competitive power costs compared to other US markets.
“CoSentry is a leader in its markets and has differentiated itself as a premier, high-quality provider of IT services,” says Kenneth T Schiciano (pictured), a Managing Director at TA Associates who will also join CoSentry’s Board of Directors. “With comprehensive customised solutions, nearly 100% uptime dependability and a client-focused culture, CoSentry has consistently done very well in attracting and retaining a diverse and quality customer base. We anticipate that trend will continue.”
"McCarthy Capital has enjoyed its partnership with CoSentry," says Patrick Duffy, Partner at McCarthy Capital and former CoSentry Board Member. “It has been a great and meaningful experience for us to support and enhance CoSentry management’s vision to grow the business from a local operation into a nationally recognised company. We wish the management team and company continued success."
TA Associates has more than four decades of investing experience, focusing on profitable growth companies. TA’s prior investments in the telecommunications and software sectors include AboveNet, IntraLinks, McAfee, MetroPCS Communications, NetScout Systems, Network Appliance, Sophos Plc and WIND Telecom S.p.A.
Signal Hill Capital Group LLC initiated this transaction and provided financial advisory services to CoSentry and Koley Jessen P.C., LLO served as legal counsel to CoSentry. Goodwin Procter LLP provided legal counsel to TA Associates.
