Capital Southwest Supports IntelliSite’s Acquisition of Broad Sky Networks
Capital Southwest Corporation (CSWC) announced its support for the acquisition of Broad Sky Networks, Inc. by IntelliSite Corporation, facilitated through first lien financing and equity co-investment. The transaction creates EPIC IO Technology, comprising Broad Sky and IntelliSite as independent subsidiaries, focusing on IoT, wireless connectivity, and AI services. The partnership aims to enhance a technology services platform and expand market reach. Capital Southwest, with approximately $286 million in net assets, continues to provide flexible financing solutions for middle-market businesses.
- Successful support for the acquisition of Broad Sky, expanding the technology service platform.
- Creation of EPIC IO Technology enhances market positioning and growth potential in IoT and AI services.
- Capital Southwest's involvement indicates confidence in the growth trajectory of the combined entities.
- Potential integration challenges between Broad Sky and IntelliSite could impact operational efficiencies.
- Market risks and uncertainties, including the ongoing effects of the COVID-19 pandemic, could affect business performance.
DALLAS, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq:CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it recently supported the acquisition of Broad Sky Networks, Inc. (“Broad Sky”) by IntelliSite Corporation (“IntelliSite”), a portfolio company of DFW Capital Partners (“DFW”). Concurrent with the acquisition, IntelliSite created a new international, technology-focused, holding company EPIC IO Technology (“EPIC IO”) comprised of Broad Sky and IntelliSite as independent subsidiaries. CSWC supported the transaction with a first lien financing in Broad Sky and an equity co-investment in EPIC IO. Capital Southwest led the financing transaction and serves as the sole administrative agent on the credit facility.
“We are pleased to partner with DFW on its acquisition of Broad Sky. Through its existing investment in IntelliSite, DFW and the management team are building a robust technology services platform offering IoT solutions, wireless connectivity and AI services that is well-positioned for growth,” stated Douglas Kelley, Managing Director of Capital Southwest. Rachel Bazan, Vice President of Capital Southwest, said “Broad Sky’s recently launched Wireless Window™ platform positions the Company to continue to be the preeminent partner for customers’ wireless connectivity services.”
Founded in 2003, Broad Sky is a leading, single-source wireless provider for primary, temporary, failover, IoT, POTS replacement, satellite, and Future 5G across the U.S. and Canada. The company custom-engineers connectivity solutions for mid-market and enterprise customers designed to scale with their existing and future network infrastructure requirements.
IntelliSite® provides the industry's most complete AI-enabled Edge Computing solution. Its applied solutions of Heuristic-Based Monitoring (hBM) and Smart Communities as-a-Service (SCaaS) are utilized by mid-market and enterprise-class customers, partners, and federal, state, and local governments worldwide. IntelliSite’s discovery and assessment methodology, combined with its blue-chip Partner Ecosystem and world-class IntelliCare service and support, delivers the very best outcome-based solutions and sets industry standards for the most reliable edge computing solution for their clients.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company, with approximately
About DFW Capital Partners
DFW Capital Partners is a private equity investment firm focused on lower middle-market companies. The firm concentrates on service companies, with an emphasis on healthcare and outsourced business and industrial support services. DFW has established a 20+ year track record of success in building leading companies. DFW is headquartered in Teaneck, New Jersey and maintains an office in Chevy Chase, Maryland. For more information visit www.dfwcapital.com.
Forward-Looking Statements
This press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; regulatory changes; tax treatment and general economic and business conditions; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.
Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
Investor Relations Contact:
Michael S. Sarner, Chief Financial Officer
214-884-3829
FAQ
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