Traffic Management

Special Terms:

36 months, additional capital added mid-deal; multi-location, multi-vendor full-stack solution including hardware, software, install, and services.

Purpose:

Acquisition of datacenter equipment.

Challenge:

The company’s datacenter equipment requires ongoing scaling to support continued growth driven by product development and corporate acquisitions. Preserving cash was critical to prioritize strategic growth initiatives instead of investing heavily in high obsolescence technology assets.

Solution:

First, the Technology Finance Group structured a 36-month operating lease to address sale leaseback of equipment the company already owned outright.  Second, it put together another 36-month lease to acquire a multitude of impending servers and storage.  Multiple locations and assets procured from different vendors under one lease allowed for a simplified contractual process.  As needs grew during the project, AFG stepped in with additional capital to accommodate the unanticipated growth.

Impact / outcome

Equipment deliveries took place promptly following the order, with deployment phased over several months, resulting in a significant reduction in latency challenges.
Existing equipment owned outright was converted to a lease, putting capital back onto the balance sheet
Cash outlay earmarked for equipment was instead directed toward acquiring additional companies
Increased performance and processing speeds for the company’s technology platform
Set the course for an asset lifecycle management program
Improved EBITDA

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