Intermedia Joins Madison Dearborn Partners Family
MDP invests in Intermedia’s tightly integrated business applications platform
Late last year, we shared our plans to be acquired by leading private equity firm Madison Dearborn Partners (MDP). We are thrilled to announce that the transaction has now closed. As part of the transaction, Intermedia’s shareholders, led by Oak Hill Capital Partners (Oak Hill), have sold their stake in the company to MDP and company management.
So what does this mean? Intermedia will continue to operate as a standalone company, delivering secure, reliable, highly supported and tightly integrated cloud business applications. Mike Gold remains our CEO, and our headquarters continues to be in Mountain View, California. So in a nutshell, our customers and partners can continue to expect us to deliver excellent service across all fronts.
While much remains business as usual, customers and partners will benefit from the added support and capabilities of one of the largest private equity firms. MDP has a very strong financial position, having raised funds with aggregate capital of $23 billion. I asked Mike to share what this exciting news means for the future of Intermedia and he had this to say:
“Our partnership with MDP gives us added flexibility and resources to further strengthen our leadership position. 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.”
And what’s MDP’s vision for our future relationship? I asked Zaid Alsikafi, a Managing Director at MDP, for his take:
“We are pleased to welcome Intermedia into the MDP family. 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.”
Our Board has been adjusted to reflect the change in ownership. As controlling stockholder, MDP will have a significant presence on the Board, and will initially be represented by Managing Directors Zaid Alsikafi and Jim Perry, and Vice President Brendan Barrett, with Alsikafi serving as Chairman.
With Oak Hill, Intermedia has 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. It’s been a transformative period, and we’re just getting started.
More about MDP
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.