MOUNTAIN VIEW, Calif., Feb. 2, 2017 /PRNewswire/ -- Intermedia.net, Inc. ("Intermedia"), a leading cloud business applications provider, announced today that its previously disclosed acquisition by Chicago-based private equity firm Madison Dearborn Partners ("MDP"), together with company management, has closed.
Since its founding in 1995, Intermedia has been a pioneer in delivering secure, reliable, and highly supported cloud business applications. In May 2011, Intermedia was acquired by private equity firm, Oak Hill Capital Partners ("Oak Hill"), and has since transformed from a business email and web hosting company to a leading provider of over 30 Office in the Cloud™ applications. Intermedia has also more than tripled revenues (to an annualized revenue run rate of $200M), operating profits (EBITDA), users and product offerings during this time. As part of the MDP family, Intermedia will continue to operate as a standalone company delivering tightly-integrated cloud solutions to businesses and the channel partners that serve them.
"Our partnership with MDP gives us added flexibility and resources to further strengthen our leadership position," said Michael Gold, CEO of Intermedia. "With a shared vision of the future, we plan to accelerate growth through increased investments in our cloud management platform, channel solutions, communities and programs, our J.D. Power-certified support experience, new and existing products, targeted industry solutions, and potential additional acquisitions."
"We are pleased to welcome Intermedia into the MDP family," said Zaid Alsikafi, a Managing Director at MDP and Intermedia's new Chairman. "Intermedia has been able to successfully capitalize upon the global shift to the cloud and possesses tremendous potential to capture further market opportunities. We look forward to working alongside Mike and the Intermedia senior management team as we further scale the business."
Michael Gold remains Chief Executive Officer of Intermedia, and the company's headquarters continues to be in Mountain View, California. Phil Koen, Intermedia CEO until early 2015 and most recently the company's Executive Chairman, will continue in an advisory role to the CEO.
As part of the transaction, Intermedia's shareholders, led by Oak Hill, have sold their stake in the company to MDP and company management. Financial terms of the transaction were not disclosed.
Advisors to Intermedia for the transaction included Deutsche Bank and J.P. Morgan as financial advisors, Wilson Sonsini Goodrich & Rosati, Professional Corporation as legal counsel, and Pillsbury Winthrop Shaw Pittman LLP as regulatory counsel. Advisors to MDP included Evercore and SunTrust Robinson Humphrey as financial advisors, Kirkland & Ellis LLP as legal counsel, and Covington & Burling LLP as regulatory counsel for MDP. SunTrust Robinson Humphrey and TD Securities led financing for the transaction.
Intermedia is a one-stop shop for cloud business applications. Its Office in the Cloud™ suite integrates the essential IT applications that companies need to do business, including email, voice, file backup and sharing, conferencing, instant messaging, identity and access management, mobility, security and archiving – all delivered by a single provider and integrated into one control panel. Intermedia services offer enterprise-grade security, a 99.999 percent uptime service level agreement and award-winning 24/7 support, as certified by J.D. Power and TSIA.
Intermedia's over 700 employees serve over 1,000,000 users across more than 85,000 businesses and 6,000 active partners, including VARs, MSPs, distributors and telecoms. Its Partner Program lets partners sell under their own brand with control over billing, pricing and other elements of their customer relationships. Intermedia is the world's largest independent provider of Exchange email in the cloud and a leading cloud voice provider. For more information, visit Intermedia.net.
About Madison Dearborn Partners
Madison Dearborn Partners (MDP), based in Chicago, is a leading private equity investment firm in the United States. Since MDP's formation in 1992, the firm has raised seven funds with aggregate capital of approximately $23 billion and has completed over 130 investments. Intermedia will become a portfolio company in MDP's seventh fund, which recently held a final close on $4.4 billion. MDP invests in businesses across a broad spectrum of industries, including telecom, media and technology services; financial and transaction services; business and government services; health care; basic industries; and consumer. Notable investments include Asurion, Cbeyond, Fieldglass, Intelsat, Liquid Web, MetroPCS, NextG Networks and QuickPlay Media. For more information, please visit http://www.mdcp.com.
Office in the Cloud is a trademark of Intermedia.net, Inc. in the United States and/or other countries.
* J.D. Power 2016 Certified Assisted Technical Program, developed in conjunction with TSIA. Based on successful completion of an audit and exceeding a customer satisfaction benchmark for assisted support operations. For more information, visit www.jdpower.com or www.tsia.com.