– Basefarm is a leading provider of “complex” managed hosting services in Norway and Sweden
– Recent expansion into Dutch market
– Basefarm specialises in operating mission-critical IT services and is particularly successful in managing large-scale internet solutions
– Basefarm delivers services to large customers requiring the highest standards of quality
– Based on a strong culture of delivery, flexibility and customer focus, Basefarm has developed a unique reputation for its superior service levels
– ABRY Partners is one of the most experienced and successful media, communications, business and information services-focused private equity investment firms in North America and is increasingly active in Europe
– Since its founding, ABRY has completed over $27.0 billion of leveraged transactions and other private equity, mezzanine or preferred equity placements
– ABRY is a highly sophisticated and well-established investor in the hosting and colocation sector
– Given it’s sector expertise, growing European experience and portfolio of European data centre assets, ABRY was seen as the ideal partner for management to support the company’s future growth and drive its international expansion agenda
– Basefarm presented ABRY with a high quality platform to enter the Northern European managed hosting market
– Basefarm benefits from strong growth and high-quality recurring revenues. The company’s total revenue is consistently increasing by over 20% per year approaching c. NOK 400 million (USD 70m) in 2012
– Owning Datapipe, a US-based business very similar to Basefarm, ABRY was attracted by the potential synergies that could be derived through a partnership between the two companies or a merger
– With a view to leverage Basefarm as a regional consolidation platform, ABRY was very interested in the potential expansion strategy
– Basefarm had received an inbound expression of interest that triggered the process, and Arma was engaged to assist
– Arma contacted the most qualified strategic buyers to determine interest in the business
– In parallel, Arma worked extensively with management to articulate the company’s growth strategy and corresponding financial plan
– Once ABRY emerged as the most attractive bidder for the business, Arma, together with the management team, worked towards a very tight and compact timeline to complete the deal
– Overall, Arma Partners assisted the management and owners of Basefarm to realise their strategic objectives, drawing on Arma’s extensive experience in the European hosting space and global cross-border relationships with the most qualified buyers, including ABRY