Media Temple Raises $15 Million for Growth
April 22nd, 2010 By: Rich Miller
Hosting provider Media Temple has raised $15 million in expansion capital from Triangle Capital Corporation (as lead investor) and GMB Mezzanine Capital. This is the first outside investment for the Los Angeles provider, which said the money will be used for infrastructure capital expenditures, new products, working capital and debt repayment.
“With the opportunities presented by our new product roadmap, it became clear that now was the time to raise our first round of growth capital,” said Demian Sellfors, CEO of Media Temple. “The new investment will help us to continue the quality of our growth in the future. We are especially pleased to be associated with Triangle Capital and GMB Mezzanine Capital who both have strong relationships and domain expertise in our industry.”
Coverage at TechCrunch focused on Media Temple using the funding for product development and pursuing an outreach to developers as well as small business customers. But regional expansion and acquisitions are also clearly in the mix of options.
“We look forward to continuing to provide support for Media Temple as it focuses on accelerating go-to-market initiatives across new geographies and product lines, evaluates synergistic acquisition opportunities, and secures its position as a leading Virtualization Services Provider,” said Gene Ramirez, a Managing Director of the investment bank Morgan Joseph, which advised Media Temple on the transaction and arranged the financing.
Media Temple has experienced strong growth, and hosts about 85,000 customers. The company was among the first to introduce a virtualized grid hosting service, and has hosted many of the most prominent technology blogs.
“Media Temple has an outstanding record of growth, a blue chip roster of clients and thought leaders, and an outstanding culture of innovation and customer service,” said Cary Nordan, a principal of Triangle Capital. “Despite a challenging economic environment over the past couple of years, we were impressed that Media Temple continued to experience strong, profitable growth. (mt) is strongly positioned as a leader in the markets they serve. Demian Sellfors, John Carey and their team have built a great company, and we look forward to partnering with them as (mt) initiates the next phase of growth.”