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Madison Dearborn to acquire Intermedia

by Stuart Wilson, Thursday 15 September 2016

Cloud business applications provider Intermedia has been acquired by Madison Dearborn Partners (MDP), a leading private equity firm based in Chicago, USA. 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 programmes, support experience, new and existing products, vertical industry solutions, and additional acquisitions. Terms of the deal were not disclosed.

Phil Koen, executive chairman at Intermedia, said: “We are proud of the transformation and growth of the company. We now have an annualised revenue run-rate of over US$200 million, 75,000 customers, 6,000 active partners and 700 employees around the globe.”

Michael Gold, who will remain Intermedia’s CEO, added: “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.”

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 Oak Hill in close partnership with Koen and Gold, with a vision for an ‘Office in the Cloud’ for businesses and the channel partners that serve them.

Under their leadership, Intermedia transformed from a business e-mail and web hosting company to a leading provider of over 30 integrated cloud applications.

Zaid Alsikafi, a managing director at MDP, said: “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. 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.”

Alsikafi added: “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.”

Gold continued: “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 US$20 billion-plus cloud business applications market.”

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