McCarthy Capital Exits Investment in CoSentry
Omaha, NE – October 27, 2011 – McCarthy Capital and WaittCorp Investments recently announced that CoSentry.net LLC, has been acquired by private equity firm TA Associates. CoSentry is a data center, cloud computing, and managed service provider. CoSentry’s technology solutions include secure data centers, disaster-recovery services, and managed IT services from its facilities in Kansas City, Sioux Falls and Omaha.
CoSentry was founded in 2000 through a partnership with management and Waitt. In 2006, Waitt recruited Mike Steffan to lead it. Shortly thereafter, Joe Urzendowski joined the management team as Chief Administrative Officer. McCarthy Capital subsequently made an investment in CoSentry in 2008.
Since 2008, CoSentry expanded its three existing data centers, built a new $25 million Tier IV data center in the Omaha market, added a number of managed services, and more than quadrupled its earnings before interest, tax, depreciation, and amortization (EBITDA).
“McCarthy Capital has enjoyed its partnership with CoSentry,” said Patrick Duffy, Partner at McCarthy Capital and CoSentry Board Member. “It has been a great and meaningful experience for us to support and enhance management’s vision to grow the business from a local operation into a nationally recognized company. We wish the management team and company continued success.”
This is McCarthy Capital’s second successful realization from an investment in the data center and managed services industry. In 2010, McCarthy exited an investment in Peak 10, Inc., a Charlotte-based operator of data center facilities in 10 markets.
“It’s been a pleasure working with such a terrific group of people. I’m proud of what this partnership has been able to accomplish over the past 12 years and grateful for the contributions of many along the way,” said John Schuele, President of Waitt and CoSentry Board Member. “This is a tremendous achievement for a local company as numerous jobs were created here and many of the employees were owners.”
“CoSentry management is very grateful for the partnership approach of McCarthy and Waitt,” said Mike Steffan, CEO of CoSentry. “They provided equity capital when we needed it and more importantly they added tremendous value through their expertise, resources and relationships.”
The current management team will continue to operate CoSentry and has retained a material ownership interest in the company.
Signal Hill Capital Group LLC initiated this transaction and provided financial advisory services to CoSentry. Koley Jessen P.C., LLO served as legal counsel to CoSentry.