Addition of Casero’s online backup and sharing services to Radialpoint’s portfolio enable the first fully integrated consumer suite of digital home IT services specifically built for ISPs and their subscribers
MONTREAL, CANADA – April 21, 2009 – Radialpoint, the leading provider of ISP-delivered, managed IT services and support for the digital home, today announced that it has acquired Casero Inc., the number one provider of online backup and media sharing solutions for Internet service providers (ISPs). Casero’s services allow ISPs to give subscribers an easier way to protect and share their files, pictures, videos and other online media.
Since 2002 Radialpoint has partnered with leading broadband service providers to create the industry’s most successful value-added service programs. With a focus on delivering ISP business results through simplified and intuitive consumer user experiences, and the building of a world-class team, Radialpoint has been named one of Canada’s 50 Best Managed Companies, one of Profit Magazine’s Top 100 companies, and a three-time recipient of the Deloitte Technology Fast 50 award recognizing Canada’s fastest growing technology companies.
The Casero online backup and sharing solution has been proven with some of the largest telecommunications and cable service providers in the world including BT, Comcast, Cox Communications, Bell Canada and Sky. Focused solely on the ISP channel, with private-label solutions tailored to the industry’s specific needs, Casero has consistently been the ISP market’s preferred provider over competitive offerings from industry incumbents Swap Drive (Symantec) and Mozy (EMC).
“Completing the acquisition of Casero increases Radialpoint’s customer base to 20 leading ISPs worldwide and opens the door to more than 50 million subscribers for our end-to-end digital home services offering. Our addressable subscriber base now includes one in every three broadband connected homes in North America and Western Europe,” said Hamnett Hill, CEO, Radialpoint. “Adding Casero’s offerings and customer base to Radialpoint’s portfolio reinforces our position as a clear leader in the broadband market with the security, data management and premium support solutions required to address the everyday consumer’s most common and frustrating IT challenges in the digital home." Casero is a privately held software company based in Toronto, Canada. As part of the acquisition, Paul Atkinson, Casero’s CEO, will join Radialpoint’s board of directors. An industry veteran, Atkinson has extensive experience with marketing and sales in high-growth technology environments. Prior to his tenure at Casero, Atkinson was co-founder and CEO of Solect Technology Group, which was acquired by Amdocs for $1.2-billion (U.S.) in 2000. Atkinson went on to serve as senior vice president, Global Marketing at Amdocs following the sale.
The Casero transaction is the second acquisition Radialpoint has made since the beginning of the year. In January, Radialpoint announced its purchase of Boston-based HiWired Inc., a provider of premium technology support services. The acquisitions bring together three industry leaders in managed IT services and support for the digital home, with all solutions private-labeled and purpose built for ISPs and their subscribers.
Radialpoint is now unmatched in the industry with respect to the technology, expertise, and experience required to drive the most successful Internet security, online backup, media sharing and premium support programs in the market. Serving 20 of the world’s largest broadband service providers, Radialpoint is strongly positioned to have its ISP customers benefit from its breadth of access to consumer trends, behaviors and challenges inside the digital home. With broadband household penetration rates reaching saturation in developed markets, and access pricing under sharp competitive pressure, ISPs are looking to the digital home as a new area of growth.
“Digital home managed services constituted a $2.8 billion market in the U.S. alone in 2008, and ISPs have a tremendous opportunity to deploy these offerings as significant revenue-generating value-added services,” said Kurt Scherf, Vice President and Principal Analyst with Parks Associates. “Radialpoint’s ISP-exclusive solution offers ISPs a one-stop shop for such services – including security, online storage, media sharing and premium support under the same umbrella. This positions Radialpoint as a key global partner for the broadband community.”
Radialpoint has grown rapidly over the past five years, from 75 to 250 employees, while experiencing an average annual revenue growth rate of 40 percent. This year the company is estimating 50 percent annual revenue growth over the previous fiscal year and expects to exceed the $100 million mark in annual revenue within the next two years. Radialpoint has been profitable and cash flow positive since 2004, and projects an estimated EBITDA growth rate of 40 percent this year. Radialpoint is privately held by founders Hamnett Hill, CEO, Hammie Hill, CFO, and private equity partners TA Associates who invested C$98 million in the company in September 2008.
Radialpoint’s private-label end-to-end service offerings for the digital home now include:
- Internet Security Services: The complete range of home Internet security services featuring virus, spyware, firewall and fraud protection services. Additional services include Parental Controls, PC Optimizer, Pop-Up/Ad Blocker, Privacy Manager, Wi-Fi Security and behavior-based Proactive Protection.
- Online Backup & Sharing Services: A complete data management solution that enables users to backup valuable files to a secure online location and then access them from any connected device, protecting them from accidental loss and enabling anywhere anytime access. The service also provides a simple way for subscribers to share digital content such as photos and videos with family and friends.
- Premium Support Service: Offers for a fee, white-glove remote technical support, including: PC tune-ups for infected or sluggish PCs, new computer set-ups and file transfers, home networking support and other general support needs.
“Our goal is to help Internet service providers become the personal IT manager for their subscribers’ digital home under their own brand,” said Hill. “The addition of the HiWired and Casero offerings to our portfolio reinforces our position as the best choice for any ISP looking to capture new revenue streams and strengthen their customer relationships. Over the past three years, our services have generated hundreds of millions of dollars in revenue for our ISP customers while substantially reducing subscriber churn. This is a testament to the effectiveness of our solutions and the strength of our ISP partner brands.”