The New Financing is comprised of a $27.5 Million debt capital facility from Crestline Investors and an additional $8 Million equity capital from Layer 7 Capital, proceeds of which will be used to refinance the current J.P Morgan Chase credit facility and provide growth capital for the company's next stage of growth.
Atlanta, GA. November 12, 2019. Total Server Solutions (“TSS” or the “Company”) today announced the closing of a $27.5 million credit facility provided by Crestline Investors, a Ft. Worth-based specialty finance lender, and a $8 million Series B equity facility from Layer 7 Capital LLC (“Layer 7”), a boutique merchant bank based in White Plains, NY focused on the cloud computing sector. Combined with Layer 7’s initial Series A investment, Layer 7 has now invested $15 million of equity capital into the Company. Since the closing of the Series A financing in December 2017, the Company has successfully acquired and integrated operations of Zero Lag, a managed e-commerce specialist based in Los Angeles, CA, and NationalNet, a managed hosting service provider based in Atlanta, GA. The proceeds from the financing's will be used to refinance the Company’s existing credit facility from J.P. Morgan Chase and to provide expansion capital for the Company’s future growth. Layer 7 Capital acted as the Company’s exclusive placement agent for the debt capital raise and DLA Piper provided the company with legal representation.
“We have covered a lot of ground with acquiring and integrating two great companies since Layer 7’s initial investment, more than doubling our geographic footprint, tripling the talent on the team, and completing our base platform layer which provides capacity and automation for rapid growth around the globe,” said Gary Simat, CEO of Total Server Solutions. “We will continue executing on our focus on helping mid-market companies with their digital transformation initiatives in ways that best fit their goals, be it over our global cloud and bare metal platform, which resides directly on internet exchange points within major markets, commodity cloud providers such as AWS, Azure, and GCP, or emerging edge solutions partners.”
“We are very pleased to be working alongside TSS at this major milestone for the Company,” said Steve Lee, Managing Director of Layer 7 Capital. “We believe that TSS is well-positioned in its evolution as a hybrid edge computing solutions provider and we look forward to continuing our exciting journey together.”
“We are excited to work with the TSS team to provide capital to assist them in further developing their leading cloud solutions,” said Will Palmer, Managing Director at Crestline Investors. "Data infrastructure is a key area of specialization for Crestline, and we are excited to use this knowledge to help support TSS’ continued growth."
About Total Server Solutions
Total Server Solutions (https://www.totalserversolutions.com/) is a premier hybrid cloud and edge solutions company with nodes in 25 major metros in North America, Europe and Asia. TSS helps midmarket businesses manage, secure, and back-up mission-critical applications.
TSS specializes in providing highly managed and network optimized IaaS in a hybrid environment. The company takes a consultative approach to design and provision a combination of hosted private cloud, bare metal, and third party commodity cloud infrastructure.
TSS’ self-managed network connecting all of its 25 nodes allows its customers to follow where their customers consume their services. All of the Company’s compute nodes are located directly within global interconnect hubs owned and managed by Tier 1 data center operators such as Equinix and Digital Realty, who offer direct cross-connect to hyperscale cloud providers such as Amazon AWS and Microsoft Azure. Given the geographic positioning and performance transit network, TSS can provide superior application performance with the lowest latency possible for its clients’ workloads. Applications and workloads can be positioned quickly and easily using a single vendor, pricing, and orchestration stack.
TSS specializes in providing application management for eCommerce, with approximately a third of its business coming from managing eCommerce platforms such as Magento, X-Cart and Pinnacle Cart. TSS also offers a geo-optimized edge WordPress Platform-as-a-Service for more demanding enterprise clients who grow out of a simple hosted CMS service that focus on ease of use over performance and connectivity. As a Global Strategic Level partner for Veeam,
TSS provides enterprise-grade back-up solutions for on-prem, hosted and cloud-based (Sharepoint & Office365) data.
About Layer 7 Capital
Layer 7 Capital (https://www.layer7capital.com/) is a boutique merchant bank focused on providing advisory services to companies within the Software-as-a-Service (B2B, B2C), Infrastructure-as-a-Service (Data Centers, Hosting, Cloud), Managed Services (Managed Applications, Managed Infrastructure, Managed Network Services, Managed Security, Outsourced IT), Internet-of-Things and Artificial Intelligence / Robotics verticals. Layer 7's advisory services include buyside and sellside M&A, strategic planning, valuation analysis and debt capital placement for sector companies and their current and potential investors. Through its affiliate Layer 7 Management LLC, Layer 7 also makes select investments in its focused sectors.
About Crestline Investors, Inc.
Crestline Investors, Inc., founded in 1997 and based in Fort Worth, Texas, is an institutional alternative investment management firm. Crestline specializes in credit and opportunistic investments, including financing and restructuring solutions for mature private equity funds. In addition, the firm manages a multi-PM equity market-neutral hedge fund and provides beta and hedging solutions for institutional clients. Headquartered in Fort Worth, Texas, the company maintains affiliate offices in New York City, Chicago, London, Toronto and Tokyo.
For more information, please visit https://www.crestlineinvestors.com.
