Stratus Technologies sold for $352M
Stratus Technologies of Maynard will be acquired by a Manhattan-based private equity firm for $352 million, the company announced Monday.
Siris Capital Group LLC said the acquisition will facilitate the expansion of Stratus’s technology, which is aimed at preventing downtime and lost data, into the cloud. Stratus had 300 employees as of February 2013 and plans to retain its name following the sale, said company spokeswoman Sally Bate.
“This is the right deal at the right time for Stratus,” Dave Laurello, Stratus president and CEO, said in a statement. “It is a clear endorsement of our strategy, our products and our people.”
There are no indications at this point that the sale will lead to staff reductions or changes at Stratus, Bate said.
Siris is focused on making investments of between $250 million and $1 billion in business service companies, according to the statement, and will finance its acquisition of Stratus through a combination of equity and debt. The deal’s closing is subject to shareholder and regulatory approvals, and is expected to occur in 30 to 60 days, Bate said.
Stratus’s credit rating was downgraded in December by Moody’s Investors Service from B3 to Caa1 over concerns that the company’s debt position wasn’t sustainable for the long term. At the time, Stratus had a debt-to-earnings ratio of 6 to 1 with much of its debt maturing by June 2015, Moody’s said.
Stratus acquired Littleton’s Marathon Technology Corp. in 2012 to broaden its software portfolio and expand its customer case. At the time, Marathon employed 42.
Updated at 2:55 p.m. with comments from Bate
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