December 21, 2007
Garnett & Helfrich Capital Acquires MTI Europe
Leading Storage Technology Solutions Provider Established as Independent Entity to Accelerate Growth
SAN MATEO, Calif. AND GODALMING, SURREY, UK —Garnett & Helfrich Capital, a private equity firm specializing in venture buyouts (VBOs), today announced the acquisition of MTI Europe, a leading multinational provider of consulting services and data storage, storage management and data protection solutions. Garnett & Helfrich Capital purchased MTI Europe from its previous owner, MTI Technology Corporation, in a court-supervised auction. In this transaction, Garnett & Helfrich Capital also acquires MTI Technology Corporation’s brand and trademark assets for the resulting new company. This transaction establishes MTI Europe as a new, standalone company and it will be renamed MTI.
Through a long-standing selling partnership with EMC Corporation (NYSE: EMC), the world leader in information infrastructure solutions, MTI delivers best-of-breed networked storage, data protection and recovery, records management and compliance, business continuity, storage resource management, and other solutions to its clients. MTI mainly targets mid-market businesses when developing and delivering solutions.
Garnett & Helfrich Capital, the venture buyout firm, contributed capital to MTI and is the controlling shareholder. The Board of Directors will be formed with the following members: Terence Garnett, managing director and cofounder of Garnett & Helfrich Capital, will act as chairman; Michael Cody, formerly vice president of corporate development at EMC Corporation and currently an advisor to Garnett & Helfrich Capital; Grace Koo, vice president at Garnett & Helfrich Capital; Keith Clark, who will also be president and chief executive officer of MTI. MTI’s headquarters are located in Godalming, Surrey, United Kingdom.
“EMC welcomes the opportunity to start a new partnership with Garnett & Helfrich Capital and the newly independent MTI,” said Willem Hendrickx, Vice President, EMC Channels and Mid-Market for EMEA. “This investment should help to enhance MTI’s potential in the European market and help them to secure new business opportunities by offering their customers world-class information management solutions based on EMC technology.”
According to Gartner and Credit Suisse¹, the enterprise storage market (including systems, networking, software and services) will grow at a compound annual growth rate (CAGR) of 7.7 percent through 2010 to reach US$68.6 billion. In addition, Credit Suisse reports that “the increasing complexity of the overall solutions [in enterprise storage] has driven a shift in importance from storing data to managing it and protecting it.”
“Garnett & Helfrich Capital’s current portfolio holds an expansive footprint in the enterprise data center, and our investment in MTI and our opportunity to form a new partnership with EMC will further foster innovations in this market,” said Terence Garnett, managing director and cofounder of Garnett & Helfrich Capital. “We expect our investment to accelerate significant growth for the MTI business in the pan-European market by offering richer support for our customers and our partners.”
“The completion of this investment in our business enables us to embark on an exponential growth path which will greatly enhance the solutions we provide our customers,” said Keith Clark, president and chief executive officer of MTI. “With our new resources and expansion capital, we eagerly anticipate offering new, augmented solutions that will continue to exceed the expectations of our current customers and will attract new customers for MTI and its partners.”
1. Americas/United States Equity Research, Computer Hardware. Credit Suisse, October 2007.
About Garnett & Helfrich Capital
Formed in March 2004, Garnett & Helfrich Capital is a $350 million private equity fund focused exclusively on the emerging venture buyout segment for mid-sized technology spinouts. The firm specializes in spinning out businesses from large global technology companies and growing them as focused, standalone businesses. Investments include Wyse Technology (world leader in thin-client computing), Ingres (open source enterprise database company spun out from Computer Associates) and Blade Network Technologies (an industry-leading supplier of network infrastructure divested from Nortel Networks). More information is available at www.garnetthelfrich.com.
MTI is a leading international provider of consulting services and comprehensive information infrastructure solutions for mid to large-size organizations. With more than 20 years of expertise as a storage technology innovator, MTI is uniquely qualified to assess, design, implement and support whole-office data storage and backup initiatives. MTI enjoys strategic partnerships with several industry leaders, including EMC (NYSE:EMC), CA (NYSE:CA), Quantum (NYSE:QTM), and Overland (NASDAQ:OVRL). MTI offers the best data storage, protection and management solutions available today. By employing a strategic, consultative approach, MTI provides customers with a single point of contact that eliminates complexities while delivering operational efficiencies and competitive advantages. More information is available at www.mti.com.
Catherine Porter, Garnett & Helfrich Capital
Roger Bearman, MTI Europe
+44 0 1483 520200