Madison Dearborn Partners to acquire BlueCat Networks

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By Ted Liu

Madison Dearborn Partners has agreed to acquire BlueCat Network, a Toronto based provider of Enterprise DNS. Terms of the transaction were not disclosed.

The transaction is expected to close early in the second quarter of 2017. Upon completion of the transaction, BlueCat’s management team will remain in place and retain a significant equity ownership position in the company.

“This is an incredibly exciting time for BlueCat,” said Michael Harris, CEO of BlueCat, “We have prioritized the needs of enterprise customers by taking a uniquely software-centric approach to our delivery model, and that strategy has propelled BlueCat to the forefront of the industry. MDP recognizes BlueCat’s valuable position within our customers’infrastructure and our tremendous growth prospects. With the added resources and expertise of MDP, BlueCat will be strongly positioned to accelerate our growth.”

“We are thrilled to be partnering with MDP as we embark on our next growth chapter,” said Michael Hyatt, BlueCat’s Co-founder, who is also retaining an equity ownership interest in the company. “BlueCat has established itself as an integral partner to many of the world’s leading companies and, alongside MDP, will remain focused on delivering solutions to manage increasingly complex network infrastructure needs. In addition, we would like to thank our investors Trident Capital and Northleaf Capital Partners for believing in our vision and for their unwavering support and assistance in growing the company. They have been excellent partners.”

“BlueCat is a leader in a high-growth, in-demand sector of the global enterprise IT industry, and we look forward to partnering with Michael Harris and his talented management team to build upon the company’s momentum,” said Doug Grissom, a Managing Director at MDP and head of the firm’s Business and Government Services team. “Enterprises around the world are experiencing a growing need to adopt enterprise DNS solutions to manage the rapid increase in scale and complexity of their IT networks. We look forward to utilizing our expertise in high-growth technology companies to help BlueCat realize its growth prospects, while continuing to deliver critical solutions to customers.”

Houlihan Lokey’s TMT Group acted as sole financial advisor to BlueCat, and Evercore was the sole financial advisor to MDP.