Managed services provider Vology has completed what the company is calling a transformative financial recapitalization.
Capitala Group, an investment firm based out of Charlotte, North Carolina, led the recapitalization. Financial terms were not disclosed.
Vology, headquartered in Clearwater, monitors, manages and maintains 260,000 devices at 32,000 customer sites, providing around-the-clock support through its U.S.-based Network Operations Center and Security Operations Center. The company is among the largest managed services providers in the United States, ranking No. 21 on the 2018 MSP 501, a national list from ChannelFutures.
The recapitalization is good news for the company, its customers, business partners and employees, said Barry Shevlin, Vology’s president and CEO.
“With a strengthened and simplified balance sheet, we are now well positioned to continue to invest in and grow our business,” Shevlin said in a news release.
The fresh capital “resets the financial footing of Vology,” said Steve Torres, chief operating and financial officer.
“We believe this transaction demonstrates both strong underlying values of our business, as well as confidence in the company’s ability to execute its strategic plan. With this transaction completed, we now have the necessary working capital to support our continued investments in Managed Services, Cloud, and Security solutions,” Torres said.
It’s at least the third time Vology has raised funding. The company raised $32.5 million in 2011, in a round led by LLM Capital Partners in Boston, according to PE Hub. In October 2017, Vology raised an additional $14.5 million from 14 investors in an equity offering, a filing with the U.S. Securities and Exchange Commission said.
The latest recapitalization is not the first time Capitala Group has financed Vology. In 2015, Capitala Group invested in $8 million in senior subordinated debt to help Vology acquire VITAL Network Services Inc.
“We are excited to lead a capital restructuring and provide fresh growth capital to Vology,” said Peter Sherman, chief risk officer at Capital Group. “Supporting valuable mid-market businesses like Vology and helping them grow is core to Capitala’s mandate of supporting mid-market businesses with both capital and operational guidance.”
Capitala Group is a $3 billion asset management firm that provides capital to lower and traditional middle market businesses throughout North America. It has invested in more than 150 companies, and its current portfolio includes food concepts California Pizza Kitchen and Long John Silver’s,as well as two companies in the Tampa Bay area: American Clinical Solutions in Sun City and Peterson Manufacturing in Sarasota.