Although the company did not disclose the exact amount of the investment, NewSpring says it will hold a minority stake in Raritan.
The investment will support Raritan’s growing power management business that helps companies improve energy efficiency and operations in their data centers. Funds were provided through NewSpring’s growth equity fund, NewSpring Growth Capital.
The company says it plans to use the investment proceeds to “facilitate its rapid and accelerating growth in the data center power management market through the development of new products and expansion into additional geographies.”
Raritan entered the power management solutions business three years ago to help companies monitor and manage the energy usage of servers and other IT devices in their data centers.
Its power management solutions include software offerings, such as Power IQ and dcTrack, and a portfolio of intelligent power distribution units that provide detailed, accurate energy information.
Raritan’s intelligent power distribution units and energy management software are used by customers of all sizes and across every industry.
Marc Lederman will join Raritan’s board of directors in conjunction with NewSpring’s investment.
“We are in the enviable position of experiencing rapid growth in our power management business, and having world-class customers — such as ADP, Cisco, Deutsche Bank, eBay and Royal Caribbean — embrace our power solutions,” says Raritan CFO Bob Dennerlein. “We are delighted to have NewSpring Capital, which is synonymous with innovation and in creating value, help us on our growth path. It is a major vote of confidence in the growth potential of the power management space and in Raritan’s ability to deliver technology innovation to this market.”