Intermedia.net has been acquired by Madison Dearborn Partners, a private equity firm based in Chicago. As part of the transaction, Intermedia’s shareholders, led by Oak Hill Capital Partners, will sell their stake in the company to MDP and company management.
The partnership with MDP will help accelerate Intermedia’s rapid growth trajectory through increased investment in the company’s channel partner programs.
“We are proud of the transformation and growth of the company. We now have an annualised revenue run-rate of over $200 million, 75,000 customers, 6,000 active partners and 700 employees around the globe,” says Phil Koen, Executive Chairman of Intermedia.
Michael Gold, who will remain Intermedia’s CEO, adds, “Over the past five years, we’ve more than tripled our revenues, EBITDA, users and product offerings. We’ve also experienced dramatic growth of our customer and partner base. Along the way, we’ve built a rock-solid management team to take the company forward, including recent CFO and SVP of Worldwide Sales appointments from Dropbox and Microsoft, respectively. We are well set for even bigger things to come in partnership with MDP.”
“We are pleased to partner with Intermedia to build upon the company’s momentum and demonstrated track record of growth in the increasingly critical field of cloud-based communications and productivity solutions,” says Zaid Alsikafi, a Managing Director at MDP. “Intermedia is successfully capitalising upon the global shift to the cloud, and possesses tremendous upside potential to capture further opportunities with its reach, scalability, customer support offerings and enhanced product functionality. We have a long-standing relationship with Mike and look forward to working with him and his management team and applying our expertise with fast-growing technology companies to help take the business to the next level.”
“The Intermedia team has done an outstanding job of becoming a market leader in a competitive space,” says David Scott, Partner at Oak Hill. “Under the leadership of Phil and Mike, the company has created tremendous value, transformed its strategy, and scaled the business. We are very pleased with the company’s accomplishments and we look forward to watching Intermedia’s promising next chapter unfold with MDP.”
Koen elaborates, “First with Oak Hill, and now as we embark on this next chapter with MDP, Intermedia is well-positioned for further growth. With Oak Hill’s support, we’ve built a core technology platform, while expanding the applications suite on top. We look forward to building upon this momentum with the benefit of the MDP team’s expertise.”
Gold adds, “I couldn’t be more excited about the vision that Intermedia and MDP share. Recognising that the channel influences 65-75% of IT spending, we’ve built our business to meet the needs of the channel. Intermedia’s cloud applications and management platform provide a number of key benefits for our partners, including a private label model, as well as operational, technical, marketing, and sales support. With MDP, I look forward to further strengthening our leadership position in the $20+ billion cloud business applications market.”
The transaction is expected to close this calendar year, subject to customary regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed.