Pivot3 Inc. (“Pivot3” or the “Company”), a venture-backed provider of intelligent video surveillance management software, pioneered hyperconverged infrastructure (“HCI”) technology for enterprise-grade security video applications. The Company has deployed its software-based offering across thousands of customers representing a wide range of end-use environments, including campuses, safe cities, casinos, airports, transit stations, and federal facilities. Pivot3’s solutions allow customers to capture and analyze a large amount of video data in real-time, in a secure environment. The Company’s highly scalable, cost-efficient software offering represents rare innovation in video surveillance—the largest generator of data in the world.
Recognizing a critical need for increased distribution capacity in order to achieve profitability and address liquidity challenges, Pivot3 began evaluating strategic alternatives—including a capital raise, sale process, and various commercial alliances. The Company concluded that an M&A transaction would be the optimal outcome for stakeholders and would best allow the technology to flourish in the marketplace. Under new ownership, Pivot3’s HCI offering would be better positioned to capitalize on the increasing security and surveillance needs of enterprise customers. A new owner could leverage the Company’s industry-leading, patented solutions and existing high-quality customer base to fully capitalize on the market opportunity in HCI video surveillance.
Pivot3 engaged G2 Capital Advisors, LLC (“G2”) as exclusive sell-side advisor to lead a highly-targeted and accelerated sale process. As the premier restructuring advisory and investment banking boutique serving the lower middle market, and with domain expertise in the technology sector, G2 leveraged its deep capabilities throughout this crucial mandate. G2 designed and executed a tailored transaction process targeting strategic and financial parties.
The transaction successfully closed as a sale of substantially all of Pivot3’s assets to Quantum Corporation (“Quantum”) (Nasdaq: QMCO). The parties opted to effectuate the asset sale transaction inside an assignment for the benefit of creditors (ABC). Following transaction close, over 40 Pivot3 employees joined Quantum. “Pivot3’s innovative HCI technology, talented team and enterprise customer base represent a highly appealing package not otherwise available in the security video sector” said Nate McOmber, Director at G2 Capital Advisors. “This acquisition positions Quantum as a primary player in video surveillance.”