Montreal-based Fresche Solutions (formerly known as Fresche Legacy), which provides solutions to help companies manage and modernize legacy IBM applications, has raised $78.12 million ($60 million USD) of debt financing.
The financing was led by the National Bank of Canada (NBC), with participation from Investissement Québec and TD Bank.
Fresche Solutions helps organizations extend the life of applications and databases that run on IBM Power Systems. The company’s solutions help organizations take advantage of computing practices and technologies such as web, mobile, open-source technologies, and the cloud.
Fresche Solutions said it will use the funding to support its operations, organic growth, and acquisition strategy as it looks to build a portfolio of IT modernization solutions. Specifically, Fresche is hoping to become a key solution provider for the IBM i customer community.
“This new financing is an additional step in Fresche’s continued growth and acquisition strategy.”
– Andy Kulakowski, president and CEO of Fresche Solutions
“This financing is key to our acquisition strategy,” said Andy Kulakowski, president and CEO of Fresche Solutions. “We are a highly profitable global company that’s growing quickly, and acquisitions will further accelerate our growth and extend our reach into new markets…IT modernization becomes a more pressing need with each year that passes, and the market is increasingly turning to Fresche for help. This $60 million USD financing will help us make sure that we provide the widest possible portfolio of solutions to more than 100,000 potential clients.”
“Financial institutions were impressed with our level of revenue growth, both direct and via partnerships,” said Patrick Thibault, CFO at Fresche Solutions, about why they received funding from TD and NBC. “Financial institutions were also impressed by management’s proven track record on acquisition and integration, which fueled the decision to support not only Fresche’s operations and organic growth, but also its acquisition plan. This new financing is an additional step in Fresche’s continued growth and acquisition strategy, which will result in building a global champion in the modernization and transformation industry.”
Fresche Solutions currently has over 400 employees. The company secured a $7.8 million investment from the Fonds de solidarité FTQ and the regional Fonds de solidarité FTQ Montréal in December 2015, and acquired Boston-based Quadrant Software in June 2016.