BC Partners And Medina Capital Announce Joint Venture To Create Global Secure Infrastructure Platform
$2.8 Billion Transaction Combines CenturyLink Data Centers and Colocation Business With Medina Capital’s Cybersecurity and Analytics Portfolio
November 04, 2016
NEW YORK & MIAMI – Nov. 4, 2016 – Leading international private equity firm BC Partners and Medina Capital, a private equity firm that focuses on investing in companies in the cybersecurity, data analytics and IT infrastructure markets announced today the formation of a joint venture that combines a portfolio of data centers and the associated colocation business to be acquired from CenturyLink along with the acquisition of Medina Capital’s security and data analytics portfolio.
The new venture will deliver a global secure data infrastructure platform by combining 57 premium data centers along with a suite of highly-differentiated security and data analytics services from the Medina Capital portfolio, including:
Leader in the software-defined perimeter space, providing secure, dynamic user access to business critical applications across physical devices, private cloud and public cloud infrastructure.
Provider of software-defined segmentation, infrastructure visualization and security policy enforcement across cloud infrastructure.
- Easy Solutions
Security provider focused on the comprehensive detection and prevention of electronic fraud across all devices, channels and infrastructure, with a robust authentication platform and transaction anomaly detection.
Leader in machine-learning software that powers advanced data discovery and analytics, insider threat detection and defense intelligence capabilities.
The new company will be an immediate leader in the global colocation market, with more than 3,500 customers and 2.6 million square feet of raised floor capacity, and is well-positioned within some of the fastest-growing segments of the information security market, which is estimated by Gartner to grow to $113.4 billion by 2020 [Gartner G00317994, Forecast Analysis: Information Security, Worldwide, 2Q16 Update, Oct. 21, 2016].
“There is a growing need by companies around the world who are seeking greater flexibility over their IT infrastructure and a greater focus on the demand for an expansive suite of applications to be closely and securely interconnected with customers, suppliers, software vendors, financial service providers and cloud providers. Our new venture is an answer to that need,” said Justin Bateman, a managing partner at BC Partners. “We are creating a completely secure, global infrastructure to exceed today’s information security, scale and availability challenges. We are pleased to partner with Manny and the team at Medina Capital who have deep experience and proven success incorporating disruptive technologies within a portfolio of top-tier data centers.”
Manuel D. Medina, founder and managing partner of Medina Capital, will lead the new company as chief executive officer. He will be joined by his executive team from Medina Capital, which includes the former senior leadership team of Terremark, a leading provider of data center, cybersecurity and infrastructure services that was acquired by Verizon in 2011 in a $2 billion transaction representing a 19x EBITDA multiple and 5x return on equity.
“We’re combining a worldwide footprint of best-in-class data centers with cutting-edge security and analytics services, integrating these capabilities into a global, highly secure platform that meets today’s critical enterprise, public sector and service provider demands for cybersecurity, colocation and connectivity,” said Manuel D. Medina, founder and managing partner for Medina Capital. “Our customers will be able to leverage a suite of on-net security and advanced analytics services deeply integrated into the data center.”
The transaction is expected to close in first quarter 2017, pending regulatory approvals and customary closing conditions. Branding for the new company will be announced at a later date.
LionTree Advisors acted as financial advisor to BC Partners and its consortium investors. Latham & Watkins LLP is serving as legal advisor and PricewaterhouseCoopers is serving as accounting advisor. Citigroup, JP Morgan, Barclays, Credit Suisse, Jefferies, HSBC, Macquarie and Citizens have underwritten the debt package to finance the acquisition.
Greenberg Traurig served as legal advisor to Medina Capital.
About BC Partners
Founded in 1986 as one of the few truly pan-European buy-out investors, BC Partners has grown and evolved into a leader in buy-outs, principally investing in larger businesses in the region and selectively in North America through its established network of offices in London, Paris, Hamburg and New York. BC Partners continues to identify attractive investment opportunities by focusing on the best balance of risk and reward for its investors and is currently advising funds totaling over €12 billion.
Since inception, BC Partners has completed 92 transactions with a total enterprise value of €115 billion and has delivered superior returns through economic cycles, demonstrating discipline in bull markets and an ability to invest in attractive opportunities amidst turbulence and recession.
About Medina Capital
Medina Capital is a private equity firm investing growth capital in innovative companies in the cybersecurity, data analytics, cloud infrastructure and software-as-a-service markets. Medina Capital’s philosophy emphasizes funding high-growth companies with established products that will benefit from the strategic guidance of the firm’s experience and expertise in the technology sector. For more information on Medina Capital visit http://www.medinacapital.com.
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For BC Partners
Jimmy Asci – Teneo Strategy
For Medina Capital
Zenobia Godschalk – ZAG Communications