Upstack’s lead investor Berkshire Partners sponsored the financing of the deal and worked closely with Upstack throughout the transaction.
The money will be used to scale and expand the company’s platform, which combines cloud and internet infrastructure advisors with proprietary software and support resources. Upstack originally positioned itself as a colocation marketplace but has since pivoted to become a sales agency much like CloudAdvise.
Upstack’s platform allows business technology buyers and advisors to “design and compare cloud and internet infrastructure solutions. Its technology consists of a set of tools that automate many of the most time-consuming components of designing and sourcing IT solutions, saving its advisors and end-customers significant amounts of time relative to current modes of manual data extraction, input, comparison, and presentation,” the company says.
Upstack’s New Funding: Enabling Investment
Christopher Trapp, CEO, Upstack
Christopher Trapp, founder and CEO, Upstack, commented:
“This transaction further solidifies our position as the most financially sound and qualified investor in the IT Channel. Adding MidCap and Morgan Stanley Private Credit as capital partners strengthens our balance sheet and further enables Upstack to continue investing in the best and brightest businesses in our sector.”
Dave Crescenzi, MidCap Financial, added:
“As more businesses that provide products and services in the $4 trillion IT industry continue to rely on indirect sales as primary go-to-market strategy, Upstack has proved highly successful at investing in some of the most well-established and fastest-growing brokerages in the industry. We have been impressed with the team and the stability of the businesses that Upstack continues to attract.”
Sean Sullivan, managing director of Morgan Stanley Private Credit, said:
“We are pleased to support Upstack on this transaction. We’re confident Upstack will use this financing opportunity to further scale the revenue and profitability of its business.”
Upstack’s Growth Trajectory
Since its founding in 2017, Upstack has acquired 13 independent agencies. The company says it will continue seeking investments in category-leading telecom, cloud and connectivity firms. Past deals have included: