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Overview

M/C Partners was the sole institutional investor and controlling shareholder of Fusepoint, a hosting and collocation services company based out of Toronto, with data centers in Toronto, Vancouver and Montreal.

How we added value

  • Providing Growth Capital M/C invested approximately $30 million in Fusepoint to fund an aggressive growth strategy involving expansion of the company's operations and the acquisition of key Canadian assets that solidified the company’s position in the market.
  • Leveraged Industry Expertise to Identify Opportunity Through the firm's expertise and focus in the space, M/C identified Fusepoint early as a well-positioned hosting provider in the Canadian market.
  • Strategic Guidance/Sale Process M/C worked with management team, guiding them through the successful and highly complementary sale to Savvis.  Savvis and Fusepoint both held leadership positions in the hosting and colocation services industry.  The combination created enhanced opportunities for both new and existing clients as well as access to a consolidated North American footprint.

Outcome

Fusepoint demonstrated robust growth over the course of the investment period.  Revenue grew at 18 percent and adjusted EBITDA grew at 83 percent CAGR.  By the first quarter of 2010, Fusepoint generated annualized revenue of $47.4 million and adjusted EBITDA $12.0 million, with more than 330 marquee customers.  In 2010, M/C sold Fusepoint to Savvis, a cloud infrastructure and hosted IT solutions provider.  Savvis would later be acquired by Centurylink to become their Technology Solutions business.

"M/C Venture Partners has been integral to our success since the beginning by helping us monetize our market opportunity, build the team and properly capitalize the company for success... M/C's deep expertise in the managed hosting space and its vision of where the market was going ensured we were always on the right path that ultimately led to this successful sale to Savvis." -- George Kerns, former CEO of Fusepoint