M/C Partners Announces Sale of CSDVRS to Kinderhook Industries

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Transaction Is Latest Successful Exit for M/C Partners

BOSTON, MA — March 19, 2015 — M/C Partners, a leading investor in communications services, today announced the sale of portfolio company, CSDVRS LLC, a provider of video relay services for the deaf and hearing-impaired, to Kinderhook Industries.

Based in Clearwater, Florida, CSDVRS provides Video Relay Service to assist deaf and hearing-impaired individuals to communicate with others through certified sign language interpreters.

M/C Partners invested $10 million in the company since 2006, when the firm  collaborated with Providence Equity Partners to spin the company out of Communication Service for the Deaf (CSD), a non-profit organization based at the time in South Dakota.

“We are very proud of this tremendously successful exit, as it really exemplifies what we do as a private equity firm,” said Gillis Cashman, Managing Partner, M/C Partners.  “We recognized an undermanaged asset in a fast-growing market that we felt had a strong opportunity for success.  By making some strategic investments and bringing in a new management team, we were able to ‘out-innovate’ a large monopolistic competitor and more than quadruple CSDVRS’ revenue in a reasonably short period of time.”

Under M/C Partners’ leadership, CSDVRS became the first company to launch video relay service on a mobile video phone and as well as the first provider to launch a VRS call on an iPhone in 2010.    The company was also the first to solve the challenges with corporate firewalls in order to provide VRS to businesses and government organizations.

“M/C played a significant role in the success of business providing not only strong financial support but also strategic insight the helped us develop services beyond the VRS market, said Sean Belanger, CEO of CSDVRS. “It was a true partnership.”

In the later stages of the investment, M/C Partners leveraged the video platform it had built and scaled into other markets, such as healthcare, where it provided video interpretive services to dramatically cut costs for hospitals that previously needed to have interpreters on-site.  Through the CSDVRS technology, hospitals can now use an iPad to leverage certified language interpreters on-demand in a much more cost-effective manner.

The sale of CSDVRS is the latest in a series of successful exits for M/C Partners over the past couple years.  Last year Zayo Group priced its IPO, Deutsche Telekom acquired GTS Central Europe, and in 2013, Baja Broadband was purchased by Telephone and Data Systems, Inc. [NYSE: TDS].

About M/C Partners
M/C Partners is a private equity firm focused exclusively on the communications, media, and information technology sectors. The firm has invested over $1.5 billion into nearly 100 companies in those sectors. Companies M/C has backed include Cavalier Telephone, Fusepoint, GTS Central Europe, ICG Communications, Involta, Legendary Pictures, Lightower, MetroPCS, NuVox, Open Mobile, and Zayo Group. The firm has strong institutional backing from the nation’s leading pension funds and endowments as well as a long track record of success. M/C Partners has offices in Boston and San Francisco. For more information, visit MCPartners.com.

Contact:
Neal Stein
Technology PR Solutions
321.473.7407
nealjstein@techprsolutions.com

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TEAM MEMBERS

SECTOR

IT SERVICES

James F. Wade

Jim Wade co-founded M/C Partners in 1986 with Dave Croll. He has been investing in communications and technology services since the advent of wireless and broadband, cornerstones of the firm’s sector focus. As a founding managing partner, he manages the firm’s investment process, and continuously seeks out management teams, company prospects and financial resources to grow the portfolio. Jim’s successful track record includes MetroPCS (IPO), Lightower Holdings (acquired by Berkshire Partners), Triad Communications (acquired by T-Mobile), Brooks Fiber Properties (IPO and sale to AT&T Wireless), Cavalier Telephone (acquired by PAETEC), NuVox Communications (acquired by WindStream), Attenda (acquired by Darwin Private Equity), Melita (acquired by Apax Partners), PR Wireless (joint venture with Sprint affiliate in Puerto Rico), Thrive Networks (acquired/recapitalized by Court Square) and Involta (acquired by Carlyle Group). Today he serves as a director on the Board of Connectivity Wireless and has responsibility for Omega Wireless. Jim graduated from the University of Notre Dame a B.B.A in Finance and received an MBA from Harvard Business School. He lives outside Boston with his wife and four children. Jim was an avid boater and is now an average golfer.

JOINED

1986

Contact

BOARD POSITIONS
Connectivity Wireless

 

Connectivity
Wireless
Involta

Abhishek Rampuria

Abhishek (A.B.) is a Partner at M/C Partners, where he leads origination, deal diligence and portfolio company support for investments in a variety of communications and technology services segments. He currently serves on the Board of Ascend Technologies, Connectivity Wireless, Edafio Technology Partners, TowerCom and serves as a Board Observer for Thrive Networks. A.B. previously served as a Board Observer for Ensono (acquired by KKR) and QOS Networks (acquired by Zayo). Prior to joining M/C Partners in 2015, A.B. worked at Altman Solon (formerly Altman Vilandrie), a technology, media & telecommunications focused strategy consulting firm, where he completed projects for both operating companies and private equity investors. A.B. received a B.S. in Materials Science & Engineering from the Massachusetts Institute of Technology. He lives in Boston’s South End and outside of work, enjoys skiing, cycling, traveling and cheering on his home-town Patriots and Celtics.

Joined

2015

AFFILIATED PORTFOLIO

Thrive Networks

Contact

BOARD POSITIONS

Ascend Technologies
Connectivity Wireless
Edafio Technology Partners
TowerCom