Cascadia Capital Leads Anti-Spam Software Leader Through Strategic Acquisition

Challenge

When Cascadia Capital met with ActiveState in 2003, the company was a profitable and rapidly growing anti-spam software company. ActiveState had a partnership with Sophos, a leading anti-virus firm based in the U.K. that was looking to expand its market share in network security. ActiveState needed help in valuing its business, negotiating acquisition terms, and managing the overall process and timetable. It also needed to minimize distractions on the management team.

Solution

Cascadia Capital leveraged its knowledge of the network security industry to prepare a detailed valuation analysis and defense for ActiveState. Cascadia Capital went on to garner expressions of interest from other potential buyers to maximize valuation, optimize terms, and create a sense of urgency.

Results

With Cascadia Capital's guidance, ActiveState was able to negotiate, structure, and close the acquisition transaction with Sophos in under three months. Cascadia Capital's analysis allowed ActiveState to receive a valuation that was aligned with recent public and M&A comparables. All the while, ActiveState management was able to maintain its focus on running the business.