New York-based Siris Capital Group will acquire Bermuda-based computer services company Stratus Technologies for $352 million, according to a statement.
Stratus provides crash resistant servers and software to small and medium-sized businesses and municipalities. The company has annual revenue of approximately $200 million, EBITDA of about $50 million and has been privately held by various investment firms since 2000. Debt financing for the transaction is being provided by SunTrust Robinson Humphrey and Macquarie Capital.
Siris is a 2011 SAC Capital spinout that focuses on complex technology focused investments and special situations. The firm closed its Siris Partners II fund on $641 million in 2013. Siris’ backers include the California Public Employees’ Retirement System, The Teachers’ Retirement System of Illinois and the New York State Common Retirement Fund, according to Private Equity International’s Research and Analytics division.
Siris was founded by former Ripplewood Holdings partners and SAC founders Frank Baker, Peter Berger and Jeffrey Hendren. Last August, the firm hired Elias Mendoza, former chief operating officer and partner at Union Square Advisors, as a managing director.
Siris also maintains a co-investment program which was involved in the Stratus transaction. The co-investment program targets complex, special situations from $250 million to $1 billion. At the time of the transaction, Stratus was working through loan refinancing and will now restructure.