Welsh, Carson, Anderson & Stowe (the "Firm" or "WCAS"), a private equity
firm exclusively focused on information/business services and
healthcare, announced that it has completed the sale of its portfolio
company, Peak 10, Inc. (the "Company") for $730 million. WCAS
generated sale proceeds of $363 million, which were distributed in June.
Peak 10 also completed a dividend recapitalization in October 2012, and
WCAS received $190 million.
WCAS completed its acquisition of Peak 10 in October 2010. The Company
is a leading provider of hybrid IT infrastructure, cloud solutions and
managed services to small and medium-sized enterprises, and currently
operates 23 data centers in 10 metropolitan markets across 7 states
within the southeastern U.S. WCAS leveraged its expertise in the sector
from a former investment in Savvis, Inc. both in ourcing and completing
the Peak 10 investment.
"We are very proud of our partnership with Peak 10's management since
2010 and Peak 10's continued leadership position in the industry." said
Eric J. Lee, General Partner at Welsh, Carson, Anderson & Stowe. "The
Company delivered terrific performance and we believe is well-positioned
for its next phase of growth."
WCAS has continued to recognize the strong public and private markets in
recent years, taking the opportunity to pursue attractive exits. During
the first half of 2014, WCAS sold Solstas Lab Partners in addition to
Peak 10 and completed the initial public offerings of Paycom Software,
Inc. (NYSE:PAYC), and K2M Group Holdings, Inc. (Nasdaq:KTWO). In the
last eighteen months, WCAS has generated net liquidity of $2.4 billion.
This has resulted in WCAS investors receiving $3.62 of distributions for
every $1 of capital called since 2013.
About Welsh, Carson, Anderson & Stowe
Welsh, Carson, Anderson & Stowe focuses its investment activity in two
target industries, information/business services and healthcare. Since
its founding in 1979, the Firm has organized 15 limited partnerships
with total capital of $20 billion. The Firm is currently investing an
equity fund, Welsh, Carson, Anderson & Stowe XI, L.P. See www.welshcarson.com
to learn more.
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