April 2021UPSTACK Secures Equity Investment from Berkshire Partners
Deal Represents Largest Equity Investment in IT Agency Space
NEW YORK – April 14, 2021 – UPSTACK, a profitable, fast-growing platform that transforms the buying experience for businesses seeking cloud and internet infrastructure solutions, announced today it has landed an equity investment from Berkshire Partners, a Boston-based investment firm.
The investment – the largest in the IT agency space – will be used to evolve UPSTACK's intuitive technology platform, expand its product and service portfolio and accelerate its direct investments in the industry's top-producing sales agencies.
"UPSTACK was founded to bring enterprise-grade advisory services to businesses of all sizes," said Christopher Trapp, Founder and CEO of UPSTACK. "Berkshire's expertise in the data center, connectivity and managed services sectors aligns well with our commitment to enabling and empowering a world-class ecosystem of technology solutions advisors with a platform that delivers higher value to their customers."
Combining the industry's leading advisors with advanced technology, support resources and data, UPSTACK architects and sources customized technology solutions for businesses with needs that span cloud, colocation and network connectivity. The cloud and internet infrastructure brokerage industry currently generates annual revenue in excess of $70 billion.
UPSTACK's approach aligns with the ongoing shift in technology sourcing wherein buyers are increasingly beginning their research for cloud-based services online and then seeking consultation with experts to design and implement an optimal solution.
By eliminating the inefficiencies of conventional sales models, UPSTACK's technology-driven platform empowers the best advisors in the industry to provide a higher level of service, product selection and compelling economic advantages to buyers of cloud-based services.
"UPSTACK has quickly become a leader in a large, rapidly growing and highly fragmented market," said Josh Johnson, Principal at Berkshire Partners. “Our experience has reinforced the importance of the agent channel to enterprises designing and procuring digital infrastructure. UPSTACK's platform accelerates this digital transformation by helping its advisors better serve their enterprise customers. We look forward to supporting UPSTACK's continued growth through M&A and further investment in the platform."
Since its founding in 2017, UPSTACK has completed more than 1,000 data center, connectivity and cloud-based projects. To date, UPSTACK has acquired nine independent agencies to become the largest and fastest-growing agency in the technology industry. The company continues to seek investments in category-leading telecom, cloud and connectivity firms.
Terms of the transaction were not disclosed.
Launched in 2017 in New York, N.Y., UPSTACK is transforming the way cloud and internet infrastructure is sourced and sold. The company uses advanced technology to enable an extensive team of cloud infrastructure advisors to offer customized solutions for businesses of all sizes. With UPSTACK, business buyers streamline IT procurement by tapping into a single source for mission-critical technology services from hundreds of proven providers along with the professional guidance to identify and evaluate the best solutions. UPSTACK's service portfolio includes colocation and data center, network connectivity, SD-WAN, unified communications, cloud contact center, private and public cloud, security, mobile, business continuity and IoT. For more information, visit us at https://upstack.com/.
About Berkshire Partners
Berkshire Partners, a Boston-based firm, has 35 years of investment history. Berkshire Private Equity has made more than 130 private equity investments since its inception and has a strong history of partnering with management teams to grow the companies in which it invests. The firm has deep sector expertise in multiple areas, including business services and technology, communications, consumer, healthcare and industrials. Berkshire Private Equity aims to invest $100 million to $1 billion in each portfolio company, and the firm is currently investing out of its ninth fund, with total equity commitments of $5.5 billion. Example communications and technology investments include AHEAD, Asurion, Lightower, Masergy, Telx and Teraco Data Environments. For additional information, and to see a full list of the firm's private equity investments, visit www.berkshirepartners.com.