Stratus Technologies acquired by Siris Capital Group
In business, the ability to keep operations running at all times is valuable, as the possibility of a critical application going down can be a major risk. Technology companies producing the hardware and software used to keep applications constantly running in the cloud without interruption can be considered to be a worthwhile investment, even when the acquired company might be encountering financial difficulty.
It was announced Monday that Siris Capital Group, a private equity firm, acquired Stratus Technologies for an estimated $352 million. Stratus Technologies, which produces servers used in cloud computing infrastructure in order to enable applications that are constantly running in the cloud to stay up and running, has been a privately-held company, with an annual revenue of about $200 million.
Stratus Technologies produces x86 high availability servers and was in the middle of a refinancing effort, making this an opportune time for a business acquisition. Part of the reason behind the acquisition is to help the Stratus Technologies restructure, CRN reported. The technology produced by Stratus allows companies to keep business operations running without interruption, as the company has been a leading provider of availability solutions.
"We are impressed by Stratus' 30 year track record of providing always-on capabilities for customers' most mission critical applications and are excited by the Company's strategy for taking this experience into software and the cloud," Siris Capital Executive Partner Dan Moloney said in a press release. "We look forward to supporting Stratus in providing continued world-class availability solutions and aiding in the expansion of these solutions into the cloud."
Part of the motivation behind the acquisition is to help reduce debt incurred by Stratus and focus on a push toward software. The firm acquired Stratus Technologies from investors including MidOcean, among others.