The Active Network
The Active Network is the largest global provider of integrated technology solutions, marketing services and online media properties that encourage and enable participation in activities and events.
Founded in 1998, The Active Network began as an online registration site for endurance races. Over the next 10 years, The Active Network made a number of strategic acquisitions enabling the company to enhance its technology, increase market share, obtain top management talent and expand it services into new markets.
In early 2007, The Active Network was a $60M+ revenue company growing 50%/year with modest profitability. At that time, Escalate led a $20M investment into Active to provide growth and acquisition capital as the company sought new market opportunities to provide technology for governments, parks and recreation departments, schools, campgrounds and major business events. Escalate funded $15M of the $20M financing and acted as agent for the mezzanine syndicate. We worked closely with management and the company’s senior lender to structure a flexible and attractive amortization schedule following a 2-year interest-only period.
By late 2007, The Active Network was seeking additional capital for further acquisitions. An Escalate-led syndicate provided the company an incremental $15M of capital. As the company continued its rapid growth trajectory over the next 3 years, Escalate provided additional flexibility via a reset of the repayment terms.
Today The Active Network is the largest company in its market and one of the largest privately-held software companies in the U.S. The company’s continuous organic and acquisitive growth has well-positioned the company for the future.