NewSpring Capital Achieves Milestone of 100th Portfolio Company with Investment in Star2Star Communications
December 17, 2014
RADNOR, PA – December 17, 2014 – NewSpring Capital, a family of private equity funds, announced today that NewSpring Growth Capital, the firm’s dedicated technology and business services growth equity fund, led a $30 million preferred equity financing in Star2Star Communications, LLC (“Star2Star” or the “Company”), with a $21.5 million investment. NewSpring Capital syndicated the round with its longtime Limited Partner, PPM America Capital Partners. Proceeds from the investment will be used to further accelerate Star2Star’s rapid growth. NewSpring’s investment in Star2Star marks a key milestone for the firm as Star2Star is the firm’s 100th portfolio company.
Star2Star is a leading provider of Unified Communications and voice over IP solutions serving hundreds of thousands of business users. Headquartered in Sarasota, FL, the Company serves customers across North America through a diversified network of strategic channel partners. The Company’s blended architecture and technology platform delivers the benefits of both on-premise and hosted solutions and provides unique advantages in scalability, quality and reliability for small to medium enterprises, as well as customers with tens of thousands of locations and users.
"Star2Star is proud to be moving forward with NewSpring Capital," said Star2Star CEO, Norman Worthington. "We have been continuously expanding since 2006 and are ready to accelerate our growth to an unprecedented level. We are very excited about the additional growth opportunities that partnering with NewSpring Capital will provide.”
“Right now, I truly feel that we have the right team and the right model in place to take Star2Star to the next level,” said Worthington. “We’ve already positioned ourselves as an innovator and leader in delivering cloud communications and our new relationship with NewSpring Capital is the next step towards securing our place at the top of the increasingly crowded communications marketplace.”
“I am thrilled to be partnering with the Star2Star Communications’ team,” said Marc Lederman, NewSpring General Partner and newly added Member of the Star2Star Board of Directors. “The Company’s characteristics are precisely what we look for in an investment - innovative and dynamic with a strong track record of consistent growth and proven management. We look forward to working with Norman and his team and feel confident that our 100th deal will prove to be a great outcome for NewSpring and our investors. ”
About Star2Star:
Founded in 2006 in Sarasota, Florida, Star2Star Communications delivers the World’s Most Complete and Scalable Cloud Communications Solution. Star2Star unifies customers’ voice, video, fax, instant messaging and presence management into a single, easy-to-use system. Star2Star’s award-winning, patent-pending Constellation™ Network overcomes the reliability and quality limitations of other communications technologies.
In the past four years, Star2Star was named to the Forbes Most Promising Companies list, the Deloitte Technology Fast 500 three times, and the Inc. 500|5000 four times. Star2Star also recently received Inc. Magazine’s Hire Power Award honoring the top private business job creators in the country.
Star2Star Communications solutions are sold through a diversified network of partners that include distributors, master agents, managed service providers and certified installing dealers. Available across North America, Star2Star systems are used by hundreds of thousands of business users, including large national chains with multi-location communications footprints.
Star2Star is a registered trademark of Star2Star Communications, LLC.