BC Partners, Medina Capital Seek to Add Analytics, Machine Learning Tools to Cyber JV Via Brainspace Purchase

big dataPrivate equity firms Medina Capital and BC Partners have agreed to buy Addison, Texas-based machine learning and analytics firm Brainspace for an undisclosed sum in an effort to establish a global cybersecurity joint venture.

BC Partners and Medina Capital expect to complete the transaction in the first quarter of 2017, subject to closing conditions and regulatory approvals, Brainspace said Friday.

Brainspace CEO Dave Copps said the company expects to expand the delivery of its investigative tools, user experiences and machine learning platforms to government agencies and enterprises through the joint venture.

The transaction comes a month after In-Q-Tel made an investment in Brainspace in order to help address the operational needs of the Intelligence Community through machine learning platforms.

The cybersecurity JV aims to provide a data infrastructure platform through the acquisition of 57 data centers from CenturyLink (NYSE: CTL) and Medina Capital’s portfolio of security and data analytics companies in a transaction valued at approximately $2.8 billion, the private equity firms said Friday.

Companies under Medina Capital’s portfolio include Brainspace, Cryptzone, Catbird and Easy Solutions.

Manuel Medina, founder and managing partner of Medina Capital,  will serve as CEO of the new company that will operate in the data security market with over 3, 500 clients and a raised floor capacity of 2.6 million square feet.

LionTree Advisors acted as BC Partners’ financial adviser in the transaction, while Latham & Watkins LLP and PwC respectively served as legal and accounting advisers to BC Partners.

Greenberg Traurig served as legal adviser to Medina Capital in the deal.

Barclays, Citigroup, Citizens, Credit Suisse, HSBC, Jefferies, JP Morgan and Macquarie helped fund the transaction by underwriting the debt package.

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