PE-Backed Upstack Acquires Subsidium and DVP Technologies

Communications and digital infrastructure company Upstack, backed by private equity firm Berkshire Partners, has announced a pair of new acquisitions. Financial terms of the deals were not disclosed.

These are technology M&A deals numbers 208 and 209 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals for 2022, 2021 and 2020 listed here.

Upstack Acquires Subsidium Technologies

The first deal is centered around Subsidium Technologies Inc, a telecommunications agency specializing in communication, network connectivity, cloud, and collaboration technology, headquartered in Clifton Park, New York.

Subsidium’s CEO John Bova and COO Ed Degenhart will join Upstack as Partners and Managing Directors along with additional members of the Subsidium team.

Christopher Trapp, CEO, Upstack

Christopher Trapp, CEO, Upstack, commented:

“Subsidium has delivered technology solutions to businesses for two decades with a concierge approach that’s a perfect match with Upstack’s vision for helping businesses more successfully source technology solutions that work for their specific needs. We’re proud to welcome John Bova, Ed Degenhart and the Subsidium team to the Upstack family.”

Ed Degenhart, COO, Subsidium, said:

“We wanted to provide the best solutions for customers instead of working within the boundaries of our employers’ services. As independent agents, we had the versatility and vendor diversity to put custom packages together for our clients.”

John Bova, CEO, Subsidium, added:

“Ed and I started this business with the dream of becoming successful while providing the best possible service to our customers. We’re excited to continue this journey with Upstack who has a shared vision of exemplary service and continued growth. Upstack has earned a great, nationally known reputation, and we’re proud to be a part of the team.”

Upstack Acquires DVP Technologies

Upstack also acquired Connecticut-based communications solutions and consulting provider DVP Technologies.

DVP’s Co-founders and Managing Partners Thomas Luciano and Michael Rafferty will also join Upstack as Partners and Managing Directors. DVP Director of Operations Eric Nygard also will join the Upstac, the company said.

DVP provides business customers with a variety of networking, data, and cloud solutions, including contact center as a service (CCaaS), unified communications as a service (UCaaS), Ethernet WAN, SD-WAN, virtual desktops, desktop as a service (DaaS), and managed hosting.

Thomas Luciano, co-founder and managing partner, DVP

Thomas Luciano, co-founder and managing partner, DVP, commented:

“We came to like the folks at Upstack and Christopher Trapp’s vision to grow the business beyond the acquisition. It was clear there was a deep organization and that he was planning ahead. Combined with the quality of advisors they’re bringing on board, Upstack seemed to be a perfect fit for us.”

Michael Rafferty, co-founder and managing partner, DVP, added:

“Best-of-breed advisors are the engine behind the Upstack model, but there’s also a technology platform through which consumption of products can take place. That dual-fold nature was really important to us as well. Being part of Upstack opens up a whole new suite of products and services that our customers can source,” said Rafferty. “And the pre-sales and post-sales resources now at our disposal will enable us to maintain a high-touch experience for our customers as we grow.”

Christopher Trapp, CEO, Upstack, said of the deal:

“Over more than two decades, Thomas Luciano and Michael Rafferty have built a successful network and cloud infrastructure agency with marquee clients in the financial, legal, health care and commercial real estate markets. We’re thrilled to bring their expertise to the Upstack team.”

Upstack’s Growth Strategy

Both deals are part of the company’s strategy to accelerate the growth of its platform, which aims to combine leading internet infrastructure advisors with proprietary software and support resources, according to Upstack.

Building on an earlier equity investment from Berkshire Partners, Upstack recently secured $100 million in financing from MidCap Financial and Morgan Stanley Private Credit to further scale its platform through technology expansion and strategic partner investments.

The company says it will continue seeking investments in category-leading telecom, cloud, and connectivity firms. Past deals have included:

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