Raritan Gets Private Equity Investment
January 19th, 2011 By: Rich Miller
Private equity investors’ interest in the data center sector extends beyond colocation and managed hosting providers, as seen in this week’s announcement that NewSpring Capital has invested in data center management specialist Raritan Inc. The exact amount of the investment was not disclosed, but NewSpring will hold a minority stake in the company.
Raritan provides data center hardware and softwares, including the dcTrack software tool for data center infrastructure management (DCIM), which is currently a hot sector due to the growing focus on energy tracking. The New Jersey company also makes intelligent power strips that provide information on energy use by equipment. Raritan plans to use the investment to develop new products and expand into additional geographies.
‘A Vote of Confidence’
“We are in the enviable position of experiencing rapid growth in our power management business, and having world-class customers — such as ADP, Cisco, Deutsche Bank, eBay and Royal Caribbean — embrace our power solutions,” said Bob Dennerlein, Raritan Chief Financial Officer, who said NewSpring’s investment represents “a major vote of confidence in the growth potential of the power management space and in Raritan’s ability to deliver technology innovation to this market.”
“ Our vision of providing IT management solutions that alleviate major data center pain points has led us into the power management sector where energy costs have become an ever increasing pressure on our customers,” said said Ching-I Hsu, Chairman and Chief Executive Officer of Raritan. ” NewSpring brings a breadth of knowledge and resources in the IT sector that should prove invaluable throughout our partnership as we continue to build Raritan into the leading provider of power management hardware and software.”
NewSpring Partner Joins Board
Marc Lederman, a General Partner of NewSpring, will join the Raritan board in conjunction with the investment..
“Raritan has a demonstrated track record of developing IT infrastructure solutions that are highly valued by its customers,” said Lederman. ” The company has achieved significant traction in the power management market by delivering high quality products with superior functionality in conjunction with industry leading service. We look forward to working with Raritan’s management team as the company continues to expand its comprehensive portfolio of power management hardware and software products.”
NewSpring Capital is a family of private equity funds providing growth and expansion capital in the Mid-Atlantic region, and has more than $600 million of assets under management.