TrendPoint anticipates bidder interest from partners; sale unlikely in midterm

TrendPoint anticipates bidder interest from partners; sale unlikely in midterm

TrendPoint anticipates bidder interest from partners; sale unlikely in midterm – CEO Proprietary Intelligence

TrendPoint, a Corona, California-based power meter and DCIM software company, anticipates buyer interest among channel partners as it hits an exponential growth phase, according to CEO Roger MacFarlane. “We are putting our foot on the first rung of quite a tall ladder,” he said of an anticipated doubled-to-tripled revenue next year. The privately held Southern California company has raised about USD 10m from a small group of individual investors and will have USD 3m to USD 5m in revenue this year. The company could reach double-digit millions in 2014 based on orders and growing interest in its power-consumption meters, which are especially used in data centers. When pressed about an early exit, MacFarlane said TrendPoint is currently not interested and meaningful takeout discussions are likely two-to-three years away. TrendPoint┬╣s partners include CA Technologies and Schneider Electric. MacFarlane acknowledged that TrendPoint’s relative size next to companies such as Schneider make it a natural target; but at the same time, he added that the TrendPoint plan is to avoid over-reliance on any one channel, which would hurt the company’s valuation. TrendPoint has seen traction in the data center space, attracting customers such as RagingWire, and is looking to grow sales in other industry segments, marketing to enterprises that use a lot of electricity. TrendPoint’s meters allow data centers to track usage of individual customers and can be installed “hot,” without powering down, drawing interest from Schneider though its subsidiary Veris Industries has a competing product. Power Distribution is also a competitor. TrendPoint’s growth path is self-financing, MacFarlane said when asked, though the CEO did not rule out a new growth round. The company is likely to remain private given its “strong team and shareholders.” MacFarlane, a TrendPoint investor, is a founder and former CEO of UTi Worldwide (NASDAQ:UTIW), where he remains chairman. McConnell, Dunning & Barwick is TrendPoint’s corporate counsel. by John Davis in Charlotte, North Carolina John Davis Regional reporter, Charlotte Mergermarket (980) 207-0426 john.davis@mergermarket.com www.mergermarketgroup.com www.ft.com/mergermarket A part of the Financial Times Group, a Pearson company. About Mergermarket: Mergermarket, a division of The Financial Times, is a subscription-based news wire service catering exclusively to the global investment community. Subscribers include investment banks, PE firms, venture capital groups, law and accounting firms, and other business advisors, as well as corporations of all sizes in all major industries. We have more than 100,000 readers and the website receives 100,000 hits a day. Articles are posted to the secure website 24/7 and also delivered via e-mail and mobile alerts. Our 250+ dedicated journalists are based in 65 locations across the Americas, Europe, Asia-Pacific, the Middle-East and Africa. We write industry trend and analysis pieces, but mainly report on corporate growth strategy via interviews with CEOs of public and private companies. Mainly we focus on how a company plans to grow in the next two years: organically, inorganically – or a combination of both? What are its core products and services? What makes it unique? How is it competing in today’s market? What economic, political and regulatory factors are driving growth or consolidation in the space, in the CEO/executive’s opinion? Mergermarket is based in New York, Hong Kong and London, under the umbrella of UK-based The Financial Times and its publicly-traded parent Pearson Plc (LON:PSON). We are 100% funded by subscribers (and will never ask sources for a fee, vendor lists or business associates).

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