Spire Capital Announces Sale of Velocity Technology Solutions
New York, July 16, 2012 – Spire Capital Partners, a leading lower middle market focused private equity firm specializing in investments in the business services, information services, education, media and communications sectors, announced the sale of Velocity Technology Solutions, Inc. (“Velocity”), a leading cloud-based application hosting company, to Silver Lake Sumeru Fund LP (“Silver Lake”) and Velocity management, a global leader in middle-market technology investing.
Founded in 2003, Velocity serves hundreds of enterprise customers in North America across a variety of industries. The Company provides a highly reliable and scalable cloud-based hosting platform that allows customers to focus on the strategic requirements of their businesses without the complexity, cost and resource demands associated with managing and supporting mission-critical ERP applications. Velocity’s extensive knowledge base in ERP application functionality provides highly responsive support for all customer needs while helping enterprises realize the full potential of their ERP solutions.
“Velocity has established itself as the leader in fully managed hosting of enterprise software with deep product expertise and services capabilities,” said Sean White, a partner at Spire Capital. “The management team, led by founder Tom Bruno, did an excellent job of creating the largest independent ERP application hosting company as evidenced by Velocity’s extensive blue chip list of customers with long-standing relationships. The platform management has built is positioned for significant growth as cloud-based application hosting continues to grow rapidly.”
“We are extremely proud of the results we achieved during our partnership with Spire Capital,” Bruno said. “The partners and executives at Spire Capital were very involved in growing Velocity and we appreciate their strategic direction and guidance.” Tom Bruno will continue to lead the company along with the other members of the executive team.
Silver Lake Sumeru and an investor group which includes management have signed a definitive agreement to acquire 100% of the issued and outstanding shares of Velocity. The transaction is expected to close during the third quarter of 2012. Stifel Nicolaus was the financial advisor and SNR Denton provided legal counsel to the Company on the transaction. In addition to Spire Capital, Tudor Ventures and EisnerAmper were selling shareholders in Velocity.
About Spire Capital Partners
Spire Capital Partners, L.P. is a private equity firm founded in 2000, and has more than $575 million of capital under management. Spire Capital partners with exceptional management teams to invest in lower middle market buyouts, recapitalizations, industry consolidations and growth equity investments in the business services, information services and communications industries. Spire Capital typically invests between $10 million and $40 million in companies with enterprise values from $25 million to $400 million. Spire Capital and its predecessor funds have made investments in more than 25 portfolio companies. The firm is headquartered in New York. For more information, visit www.spirecapital.com.
Velocity, the “ERP in the cloud company,” provides managed hosting services for ERP applications. The Company is reinventing the process of enterprise software acquisition, hosting and management—providing customers with much greater availability, security, and control over their in-house IT systems—and ultimately, their business. Velocity serves hundreds of customers with the great depth of application expertise on which the organization was founded. The company is strong and profitable with an eye toward continuing investment in its future—extending support to additional application suites, innovating application environment tools that provide transparency and control over software in the cloud, building the application social network that enhances the ERP customer experience and creating a highly-flexible application environment that enables customers to outperform peers in the marketplace. For more information, visit www.velocity.cc.
About Stifel Nicolaus
Stifel Financial Corp. (NYSE: SF) is a full-service brokerage and investment banking firm, established in 1890 and based in St. Louis, Missouri. The Company provides securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Nicolaus Weisel (SNW), the Investment Banking arm of Stifel Nicolaus, is principally focused on the middle-market. SNW manages public offerings of equity and debt securities, raises debt and equity in the private markets, and advises on mergers, acquisitions and divestitures. SNW boasts thirteen industry focused investment banking groups together with specialty groups providing coordinated financial sponsors coverage and private placement expertise.
About SNR Denton
SNR Denton is a client-focused international legal practice delivering quality and value. SNR Denton serves clients in key business and financial centers from more than 60 locations worldwide, through offices, associate firms and special alliances across the US, the UK, Europe, the Middle East, Russia and the CIS, Asia Pacific and Africa, making it a top 25 legal services provider by lawyers and professionals. Please see snrdenton.com for more information and Legal Notices.
1500 Broadway Suite 1811
New York, NY 10036