DH Capital and SaaS Capital Assist Alert Logic in Closing a New Financing
June 6, 2012
Firms Lend SaaS Financing Expertise to the Leading Provider of Cloud Security
NEW YORK, NY and CINCINNATI, OH – June 6, 2012 – DH Capital, a boutique investment banking firm with deep industry expertise in Internet infrastructure and SaaS, announced today its participation in closing a $12.2 million financing round for Alert Logic. DH Capital and SaaS Capital collaborated to provide a subordinated debt solution, complementing the equity raised in the transaction. While SaaS Capital typically provides senior debt, this transaction highlights DH Capital’s ability to assist SaaS companies across a variety of stages and capital structures.
Alert Logic, a leader in delivering Security-as-a-Service for the cloud, has increased its revenue three fold in less than three years and will use the funding to further accelerate its growth. DH Capital joined Industry Ventures and Alert Logic’s existing investors, including Updata Partners, Covera Ventures, DFJ Mercury, OCA Ventures and Access Venture Partners, and several members of the company’s management team as investors in the most recent round of financing.
“We appreciate the experience and SaaS industry insight that DH Capital and SaaS Capital brought to our latest round of financing,” commented Gray Hall, CEO of Alert Logic. “This additional capital comes at a perfect time and gives us the ability to respond to customer and channel requirements while pursuing our aggressive growth-focused strategy.”
“Alert Logic embodies the growth and market-leading capabilities we seek in our SaaS clients,” said Peter Hopper, co-founder and CEO of DH Capital. “We have been providing financial advisory services and capital to hosting and cloud service providers since the inception of the industry segment and it’s exciting to add Alert Logic to our client list.”
“Alert Logic recognizes the growth-imperative facing all SaaS companies,” commented Todd Gardner, CEO of SaaS Capital. “Value creation in SaaS is ultimately fueled by growth, and identifying the right capital structure to support that growth is critical for all stakeholders.”
About SaaS Capital
Founded in 2006, SaaS Capital is the pioneer provider of debt-based growth capital for SaaS companies. By leveraging the predictable revenue streams and future contract values of the SaaS model, SaaS Capital’s debt facilities allow SaaS companies to accelerate future cash-flow streams to fund operations today. SaaS Capital’s products provide more availability than traditional accounts receivable financing, and are structured with flexible terms to meet the needs of SaaS businesses. SaaS Capital and DH Capital are partners in a new SaaS Capital Fund launched in 2012. To learn more about SaaS Capital, visit its website at www.saas-capital.com.
About DH Capital
DH Capital is a private investment banking partnership serving companies in Internet infrastructure, communications, and SaaS. Headquartered in New York City with offices in Boulder, Colorado, the firm’s principals have extensive experience and proven abilities in capital formation, finance, research, business development and operations. DH Capital provides a full range of advisory services to companies and financial institutions, including mergers and acquisitions, private capital placements, financial restructuring, and operational consulting. DH Capital has completed over 90 M&A transactions and private capital placements totaling more than $4 billion in value. For more information on DH Capital, visit its website at www.dhcapital.com.
About Alert Logic
Alert Logic, the leading provider of Security-as-a-Service solutions for the cloud provides solutions to secure the application and infrastructure stack. By integrating advanced security tools with 24×7 Security Operations Center expertise customers can defend against security threats and address compliance mandates. By leveraging an “as-a-Service” delivery model, Alert Logic solutions include day-to-day management of security infrastructure, security experts translating complex data into actionable insight, and flexible deployment options to address customer security needs in any computing environment. Built from the ground up to address the unique challenges of public and private cloud environments, Alert Logic partners with over half of the largest cloud and hosting service providers to provide Security-as-a-Service solutions for business application deployments for over 1,700 enterprises. Alert Logic is based in Houston, Texas, and was founded in 2002. For more information, please visit http://www.alertlogic.com
Who Is SaaS Capital?
SaaS Capital® is the leading provider of long-term Credit Facilities to SaaS companies.Read More