Investment Summary

Sweetwater Capital Group, River Cities Capital Funds and Meritage Funds Invest In Faction

On March 15, 2018, private equity firm Sweetwater Capital Group, venture capital firm River Cities Capital Funds and growth capital firm Meritage Funds invested in internet software and services company Faction

Investment Highlights
  • This is Sweetwater Capital Group’s 1st, River Cities Capital Funds’ 3rd and Meritage Funds’ 2nd transaction in the Internet Software and Services sector.
  • This is Sweetwater Capital Group’s 5th, River Cities Capital Funds’ 10th and Meritage Funds’ 15th transaction in the United States.
  • This is Sweetwater Capital Group’s 1st, River Cities Capital Funds’ 1st and Meritage Funds’ 5th transaction in Colorado.

Investment Summary

Date 2018-03-15
Target Faction
Sector Internet Software and Services
Investor(s) Sweetwater Capital Group
River Cities Capital Funds
Meritage Funds
Deal Type Venture

Target

Faction

Denver, Colorado, United States
Faction is a provider of cloud computing services. Faction is entirely focused on providing its services through channel partners, such as value added resellers, managed service providers and data centers. Faction was established in 2006 and is based in Denver, Colorado.

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Investor(S) 3

DESCRIPTION

Sweetwater Capital Group is a private equity firm focused on investing in and acquiring service based businesses with recurring revenue streams. Specific areas of interest include businesses which provide critical infrastructure to the internet and to wireless communications networks. Sweetwater looks to invest $3 to $15 million per transaction and will consider opportunities throughout the US. Sweetwater Capital was formed in 2002 and is based in Red Bank, New Jersey.


DEAL STATS #
Overall 5 of 5
Sector: Internet Software and Services M&A 1 of 1
Type: Venture M&A Deals 1 of 1
State: Colorado M&A 1 of 1
Country: United States M&A 5 of 5
Year: 2018 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-01-01 CST Core

Chicago, Illinois, United States

CST Core is an owner/operator of wireless communications towers and distributed antenna systems. CST follows primarily a strategy of building new tower sites from the ground up to serve leading national carriers’ needs to expand wireless voice and data coverage and capacity. CST also designs, builds, and operates in-building distributed antenna systems to assist carriers with requirements for additional capacity.

Buy -
Investor
DESCRIPTION

River Cities Capital Funds is a growth equity investment firm focused on healthcare services and information technology companies. River Cities seeks to invest $5 to $15 million in companies with at least $5 million in revenue. The Firm generally targets companies that pursue large, established markets with disruptive, “better, faster, cheaper” solutions. River Cities Capital Funds was established in 1994 and is headquartered in Cincinnati, Ohio.


DEAL STATS #
Overall 10 of 20
Sector: Internet Software and Services M&A 3 of 3
Type: Venture M&A Deals 7 of 13
State: Colorado M&A 1 of 2
Country: United States M&A 10 of 20
Year: 2018 M&A 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-11-16 SurgiQuest

Milford, Connecticut, United States

SurgiQuest is a developer, manufacturer and marketer of access technologies for minimally invasive surgery equipment. SurgiQuest was formed in 2005 and is based in Milford, Connecticut.

Sell $265M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-09-27 MindPath Care Centers

Durham, North Carolina, United States

MindPath Care Centers is an outpatient mental and behavioral healthcare services provider. MindPath's 120+ clinicians provide the complete spectrum of psychiatric and psychological therapy services to patients across 36 sites and accept all commercial insurance. As an early adopter of telehealth and Transcranial Magnetic Stimulation (TMS) for treatment-resistant depression and obsessive-compulsive disorder, MindPath has a track record of being an innovative care provider, in addition to being a vital research development partner for clinical trials to the pharmaceutical industry. MindPath Care Centers is based in Durham, North Carolina.

Buy -
Investor

Meritage Funds

Arvada, Colorado, United States

Investor Investor


Category Growth Capital Firm
Founded 1998
PE ASSETS 1.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Meritage Funds is a private investment firm focused on growth equity opportunities. The Firm targets companies that deliver tech-based services that leverage recurring revenue business models. Areas of interest include businesses that 'enable communications, deliver content, and facilitate commerce'. Prospective transaction situations include direct equity financings, recapitalizations, control acquisitions, consolidations, restructurings, spin-outs and management buy-outs. Meritage typically looks to commit $3 to $20 million over the lifecycle of an investment. Meritage Funds was formed in 1998 and is based in Arvada, Colorado.


DEAL STATS #
Overall 16 of 16
Sector: Internet Software and Services M&A 2 of 2
Type: Venture M&A Deals 5 of 5
State: Colorado M&A 5 of 5
Country: United States M&A 15 of 15
Year: 2018 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-02 Crisp Media

New York, New York, United States

Crisp Media, Inc. (dba Crisp Mobile) is a mobile marketing and advertising company that delivers interactive campaigns across all devices, web browsers and app platforms. Crisp simplifies creative development for agencies, streamlines ad serving for publishers and unifies advertising campaign reporting for media buyers and brands. Crisp Mobile was established in 1999 and is headquartered in New York.

Sell $33M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-08-19 EdgeConneX

Herndon, Virginia, United States

EdgeConneX builds and operates data centers for cloud, content, network, and other service providers requiring both larger purpose-built facilities as well as edge facilities located closer to consumer and enterprise users to support latency-sensitive applications cost-effectively. EdgeConneX was founded in 2009 and is based in Herndon, Virginia.

Sell -