Featured Case Studies
“Our lead banker, now at Menalto Advisors, was strategic, determined, longstanding, and a critical partner in optimizing our sale to Intel. Without him, we could not have accomplished such an excellent outcome. I have referred him to other companies and will continue to do so.”
VIA TELECOM, INC.
Taipei, Taiwan &
San Diego, California
VIA Telecom, Inc. was a leading provider of CDMA baseband processors and other semiconductors used in 2G, 3G, and GPS-enabled CMDA2000 devices. The company also provided handset reference designs and operator customization services including software development packages, software diagnostic tools, test support, and manufacturing support.
As the only provider of CDMA baseband processors other than Qualcomm, Inc. and MediaTek Inc. (through a license from VIA Telecom), VIA Telecom served as a critical source of supply to wireless device providers wanting to sell smartphones and other devices enabled on all wireless networks throughout the world. VIA Telecom’s CDMA technology, extensive IP portfolio, and strong relationships with, and revenue from, key operators in the Chinese market were equally valuable to potential acquirers.
The lead banker, now at Menalto Advisors, worked with the VIA Telecom management team over an extended period to optimize a strategic outcome for the company. At the ideal time, a narrow and focused M&A process was run. Intel required an acquisition of VIA Telecom to develop all-mode basebands to compete with Qualcomm and MediaTek. Negotiations ensued and a successful transaction was completed despite the complexities of a cross-border transaction involving employees and assets in five countries.
“We worked closely in partnership with the Saffron Management team to provide whatever assistance was necessary to help them through a complicated sale process. Our assistance extended beyond the scope of typical advisory work to include creating key financial documents critical to completing the transaction.”
Cary, North Carolina &
San Francisco, California
Saffron is a leader in “human-like” cognitive computing technology that solves complex data-driven problems using autonomous learning solutions inspired by how the human brain functions. The company’s platform combines structured and unstructured data to learn and adapt automatically without rules or models, differentiating it from other cognitive computing and machine learning offerings.
Initially focused on a variety of top-secret government initiatives, Saffron began to shift its technology to address commercial markets in the mid – to – late 2000s. The company focused on customizing its product for several key verticals and began to establish a top-tier customer base that included Boeing, Bank of America, and Baker Hughes. Saffron was poised for rapid growth and in the early stages of generating meaningful revenue, making it attractive to potential buyers seeking highly differentiated technology in an emerging sector.
Intel, a customer of Saffron, began to express strategic interest in the company. Saffron’s bankers, now at Menalto Advisors, worked with the company’s Board and Management to devise a strategy that included testing the market with a select number of other high-value potential acquirers while simultaneously highlighting Saffron’s strategic value to Intel. Ultimately, it was determined that Intel was the preferred partner. The Saffron bankers managed an intense diligence process including taking the lead on the creation of many financial summary items for Saffron, who did not have a CFO, while also working in parallel to negotiate and improve key deal terms resulting in a strategic outcome.
“Our lead banker, now at Menalto Advisors, was outstanding and had a much broader view than just trying to complete a transaction. He added tremendous value. In fact, I used him again on another transaction. I highly recommend him.”
Bucharest, Romania &
Internet / Digital Media
Avangate B.V. provides Software, SaaS, and Online Services companies with an eCommerce platform to solve the complexities of online commerce, subscription billing, and global payments. With a proven cloud platform, unmatched expertise, and a depth of digital commerce services, Avangate helps digital business leaders drive the fastest path to revenue, maximize the value of every customer, and expand global reach.
Serving over 3,000 customers in 100 countries including small, medium, and large enterprises such as Hewlett Packard and FICO, Avangate was an established company with a growing revenue stream and customer base. Having started in Europe before relocating headquarters to Silicon Valley, Avangate and its investors sought a strategic exit to a partner that was prepared to take the company to the next level. Providing various eCommerce services including payments, sales tax collection, and billing in an ever more complex digital goods marketplace for companies doing cross-border business, Avangate was an attractive, established growth opportunity for a strategic acquirer or PE firm looking to invest to expand the service offering.
Working with the investors and management team, the lead banker, now at Menalto Advisors, devised a process to meet the team’s goals. A broader M&A process was run including both strategic and PE firms as potential acquirers. Multiple offers were received and the lead banker’s negotiating acumen resulted in an outsized outcome including guiding the company through a number of challenging diligence issues, without a reduction in the purchase price.
“We worked with our bankers, now at Menalto Advisors, for several years before the company was sold. They were truly part of the company. Their contributions and commitment to the company and to the M&A process were invaluable.”
CO-FOUNDER & COO
SDP TELECOM INC.
Hardware / Industrials / Communications
SDP provides Microwave and Radio Frequency component and sub-system solutions to the wireless infrastructure market. The company’s products include a broad array of RF components, including isolators, circulators, and couplers.
While SDP initially differentiated itself by providing products with significant technical advantages, its opening of a lower cost, highly efficient production facility in China helped solidify its leadership position from both a performance and cost standpoint. SDP supplied many of the top wireless infrastructure companies such as Alcatel, Ericsson, and Nokia and was attractive to those involved in the market that were looking to invest in infrastructure to address the explosion of smart devices and data carried over wireless networks.
SDP’s bankers, now at Menalto Advisors, worked in partnership with SDP’s management team over the course of several years by providing strategic guidance and assisting with introductions to potential partners. By staying actively involved with the company, SDP’s bankers were ready and able to immediately assist the company when the time was optimal to initiate an M&A process. Through running a targeted process, several offers were received and SDP’s bankers negotiated and ultimately closed the transaction with Molex.