New State Capital Invests in Computer Data Source
Posted on Thursday, August 22, 2019
New State Capital Partners today announced a significant investment in CDS (Computer Data Source), a leading specialist provider of enterprise-level data center third-party maintenance, focused on high-end data storage. CDS operates in over 50 countries and partners with major technology service providers to deliver installation, implementation, support, training and data center administration services to end-users across a broad range of industries. Terms of the transaction were not disclosed.
“For several years, we have been pursuing an investment thesis around IT life-cycle management, including third-party maintenance,” said John Beauclair, Senior Principal at New State Capital Partners. “After evaluating numerous opportunities in the space, we found all of the elements that we were looking for in CDS. They work with SMB’s through Fortune 100 businesses, helping them manage high-end storage needs while building strong relationships that deliver monthly recurring revenue. We look forward to growing and diversifying CDS’ service offerings and customer base through both organic opportunities and acquisitions. New State’s deep roster of executives and ability to deploy capital strategically allows us to fully support these growth initiatives.”
Jim McDivitt, Tom Vaisanen, John Hlinka and Michael McKee, all members of the senior management team, have invested in the company and will remain in their positions. Ron Wollner, CDS’ co-founder, has maintained an equity stake and will remain as a senior advisor to the board.
“CDS boasts an industry-leading senior management team with an average of 25 years of experience and a proven track record of strong execution, even through diverse economic conditions,” added Steve Larned, Senior Principal of New State Capital Partners. “They’re supported by fully trained engineers with the same qualifications held by their counterparts at the OEMs. With global service capabilities and more than 500 contracts, CDS is customer-service focused and OEM neutral. Their customers have expressed great confidence in CDS’ technical capabilities and service delivery.” Larned will assume the position of Interim CEO while a new leader for the business is identified.
Debt financing was provided by Crystal Financial LLC. New State received legal advice from Morgan Lewis and debt placement advisory from Piper Jaffray & Co. Gartner, led by Christine Tenneson, provided industry guidance.
This is New State’s third platform investment in the last ten months. Earlier this month, New State acquired a stake in Mako Steel, a leader in the self-storage construction industry.
About New State Capital Partners LLC
New State Capital Partners LLC is an entrepreneurial-minded private equity firm that strives to be more nimble, more decisive and more cooperative than larger, institutional firms. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships, rather than as an exercise in meeting rigid investing criteria. The firm is very flexible about the structure of its investment and focuses on growth and add-on investment. New State seeks to invest in market-leading companies with $8 million to $30 million of EBITDA in the areas of business services, healthcare services and industrials. New State can commit more than $50 million of equity capital per transaction through New State Capital Partners II, LP. New State and its affiliates have invested in 22 companies to date. For more information visit www.newstatecp.com.
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