Cascadia Capital Provides In-Depth Advisory Services to Technology Leader in Endpoint Security

Challenge

Twingo Systems had developed a first-to-market endpoint security solution to address the growing area of security of untrusted endpoint devices. At the end of 2003, the company needed to either raise additional equity capital to either build a sales force/sales channel to bring the solution to market or leverage the existing sales/distribution infrastructure of a strategic acquiror. The M&A market for network security companies had begun to accelerate and substantial premiums were increasingly rewarded for core security offerings. This presented an opportunity to create greater shareholder value for Twingo Systems' principals.

Solution

Cascadia Capital leveraged its relationship with Cisco Systems as well as its security sector domain expertise to execute the transaction. Cascadia Capital also leveraged multiple expressions of interest from other buyers to maximize valuation and optimize terms and conditions.

Results

Cascadia Capital led the Twingo Systems team through the negotiation, structuring and closing of the acquisition by Cisco, while allowing its principals to focus on bringing the second generation of its technology to market. Cascadia Capital's analysis enabled Twingo Systems to receive a valuation that was at a premium to recent public and M&A comparables. According to Reza Malekzadeh, Twingo Systems' President & Co-Founder, "Cascadia Capital improved Twingo's strategic options by bringing multiple interested parties to the table, while maximizing transaction value and terms for the company."