Upstack, Recent off $50 Million Funding, Buys Telecom Consultancy
Cloudnexion chooses Upstack’s offer instead of a merger agreement.
Upstack, which has just announced a $ 50 million private equity investment, has acquired its first telecommunications consultancy.
The New York-based company is buying Cloudnexion, a Colorado-based agency. Jake Cummins, CEO of Cloudnexion, is now an Upstack partner and managing director. According to a spokesman, Cloudnexion will initially act as an upstack company.
It is the first of 10 agent acquisitions Upstack plans to announce. The company is using a $ 50 million investment from Berkshire Partners to drive inorganic growth. The self-described cloud and internet infrastructure platform attracts agents with the promise of obtaining equity.
“If there is a major exit event at some point in the future (at some point in the future every company will exit at some point), the agents who were primarily responsible for the success of this business may also share in the success of the equity,” CEO told us Christopher Trapp earlier this month.
Cummins chose Upstack’s offer over several alternatives. Cloudnexion could have hired a COO to build the company or merge it with a company that has a back office.
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“I’ve explored all of the other options to take my business to the next level. In fact, I was very far away on a merger plan when I came across Upstack, ”said Cummins. “The Upstack offering really hit all cylinders on what the company is looking to do to transform the channel by creating the leading advisory platform in the industry.”
Trapp said he intends to start the top direct selling agency in the United States
Cummins’ company brings an excellent pedigree to Upstack. According to Upstack, the nine-year-old telecommunications company is in the top 1 percent of Intelisys. In addition, Cloudnexion was named “Partner of the Year” by Advantix, Aryaka and Telstra.
“We are very excited to welcome Jake and the Cloudnexion team to the Upstack family,” said Trapp. “Jake has built one of the leading technology consultancies in the industry over the past eight years. We are excited to see how we can scale and expand the business together as part of the Upstack platform. “
Upstack brings a focus on data center and colocation to the channel, as Trapp previously worked on the data center supplier side. The company generates around 38% of its remaining sales with colocation. Upstack mediates opportunities between the agencies it buys that have data center expertise and those that don’t.
Most recently, Upstack announced the hiring of former Telarus and Zayo CEO Scott Forbush.