Fast-growing data center solutions and services marketplace, UPSTACK, a company that has acquired 13 independent agencies lately to become the largest and fastest-growing agency in the global technology industry, has secured $100 million in financing from MidCap Financial and Morgan Stanley Private Credit.
The funding will be used to extend and enhance UPSTACK’s “industry-transforming” platform, which unites premier cloud and Internet infrastructure consultants with unique software and support resources.
“This transaction further solidifies our position as the most financially sound and qualified investor in the IT Channel,” said Christopher Trapp, Founder and CEO of UPSTACK. “Adding MidCap and Morgan Stanley Private Credit as capital partners strengthens our balance sheet and further enables UPSTACK to continue investing in the best and brightest businesses in our sector.”
Since its founding in 2017, New York headquartered UPSTACK has completed more than 1,000 data center, connectivity and cloud-based projects. To date, UPSTACK has acquired 13 independent agencies.
Investment Opportunities in Telecom, Cloud, Connectivity
“As more businesses that provide products and services in the $4 trillion IT industry continue to rely on indirect sales as primary go-to-market strategy, UPSTACK has proved highly successful at investing in some of the most well-established and fastest-growing brokerages in the industry,” said Dave Crescenzi, MidCap Financial. “We have been impressed with the team and the stability of the businesses that UPSTACK continues to attract.”
“We are pleased to support UPSTACK on this transaction,” said Sean Sullivan, Managing Director of Morgan Stanley Private Credit. “We’re confident UPSTACK will use this financing opportunity to further scale the revenue and profitability of its business.”
UPSTACK continues to look for opportunities to invest in market-leading telecom, cloud, and connectivity companies.
Berkshire Partners, UPSTACK’s lead investor, was a sponsor for the financing deal and worked closely with UPSTACK throughout the transaction.
“I want to thank the Berkshire Partners Capital Markets team for their support in reaching an agreement with MidCap and Morgan Stanley,” said Mr. Trapp. “Berkshire’s expertise in the data center, connectivity and managed services sectors and their ongoing guidance continue to make them an excellent partner for UPSTACK.”