**Project Starfire is currently under an exclusive LOI**
Project Starfire
Acquire the Leading OEM Platform for Enterprise Networking Certified Pre-Owned (CPO) Equipment
Project Starfire is the go-to platform for enterprise networking OEMs, empowering them to confidently build certified pre-owned (CPO) programs. Starfire controls the end-to-end CPO process, allowing OEMs to source, refurbish, repackage, sell, and deliver certified pre-owned (CPO) equipment to channel partners and end customers. The company has developed cutting-edge technology and processes powered by pre-owned equipment experts, enabling OEMs to fight the gray market, support ESG initiatives, unlock innovative go-to-market strategies for certified pre-owned equipment, lift margins, and provide an alternative to “no” in the OEM sales process.
Project Starfire has built and grown the processes and channel partners required for successful CPO programs
Project Starfire Key Stats:
900+ end-user customers across 50 countries who spend an est. $18B on data center equipment annually
Over 130 channel partners with multiple end customers
Over 145 vendor partners where used gear is sourced
Over 80 customers have more than $5B in revenue
200lbs of waste saved from landfills with each order
TRANSACTION EXPECTATIONS
Project Starfire is actively pursuing acquisition by a strategic buyer. The management team is fully committed to staying on board with the acquirer, aiming to broaden offerings and maintain its position as the leading platform for CPO programs in the enterprise technology sector.
KEY BUSINESS LINES
OEM-CPO Support
OEM-CPO support, providing rules of engagement, sales expertise, access to used inventory, management of repairs and routing, order fulfillment, logistics, and compliance support
Go-To-Market Programs
These unique try-and-buy programs allow enterprises to test equipment before committing to new sales. This solves a complex return process for firms not moving forward with new equipment sales
Sustainable Sourcing
decommissioned gear is purchased in exchange for future OEM purchases, then refurbished and sold to external channels
Excess Equipment Sales
Obsolete or excess equipment is sold through CPO channels, introducing price flexibility, avoiding channel conflict, and lowering OEM inventory risk
Value to OEMs
- Perfects the complex logistics of CPO equipment, managing the complex end-to-end lifecycle of used gear.
- Allows OEMs to participate in the circular economy, reducing waste, complying with Restriction of Hazardous Substances, & finding value in obsolete or excess inventory
- Provides OEMs additional channels to distribute certified pre-owned gear while allowing for enhanced new product offerings.
- Delivers oversight and insight into the CPO practice, including OEM certification, ongoing warranty support, updating software & firmware
- Reduces gray market distribution of used equipment from other channels through a premium, differentiated, solution
- Ensures compliance with channel sales, local regulations, environment regulations, & vendor support
Value to End-Customers
- Perfects the complex logistics of CPO equipment, managing the complex end-to-end lifecycle of used gear
- Allows OEMs to participate in the circular economy, reducing waste, complying with Restriction of Hazardous Substances and finding value in obsolete or excess inventory
- Provides OEMs additional channels to distribute certified pre-owned gear while allowing for enhanced new product offerings
- Delivers oversight and insight into the CPO practice, including OEM certification, ongoing warranty support and updating software and firmware
- Reduces gray market distribution of used equipment from other channels through a premium, differentiated solution
- Ensures compliance with channel sales, local regulations, environment regulations and vendor support
KEY INVESTMENT CRITERIA
Opportunity to acquire the leading platform for CPO equipment with a ~$14B total available market
- Untapped market opportunity for used equipment that delivers high ROI for end-customers
- The platform and marketplace is already proven and ready for expansion across all data center system OEMs.
- 50+ years of combined CPO experience.
- The team developed programs with over 40+ brands, $800M in CPO sales in multiple verticals.
Leaders in the complex process of dealing with certified pre-owned equipment
- Gain complex, proprietary solutions built by leaders in the CPO market, including custom portals, CRM systems, and cloud integrations.
- Heavy investment in quoting, margin, and sales enablement systems
- Highly-developed channels for procuring, selling, and distributing equipment
- 80+ years of combined Telco and large enterprise new and used hardware sales
Reduces use of the gray market for pre-owned & obsolete equipment
- Customers obtain used equipment without risk from gray markets, including lack of support, security updates, or non-functioning equipment
- Provides distributors access to certified equipment to meet lower-cost demands from buyers
- Extends technology use of legacy systems using reliable, secure equipment for end customers.
Exponential growth potential through adding OEM partners
- Proven success with Tier 1 networking OEM
- Opportunity to expand to other networking OEMs, data center equipment manufacturers, and other high-tech providers
- Use proven sales and execution platforms to expand other OEM products.
- Potential to acquire, grow, and divest of OEM CPO lines.
Gain leadership status in circular economy efforts and ESG programs.
- Each CPO networking switch saves over 20 lbs. of e-waste and 1,000 lbs. of CO2 emissions versus manufacturing a similar new unit.
- Participate in a $550B circular economy market today
- Reach international markets where environmental regulatory pressures drive demand for circular solutions.
Build upon established relationships with over 150 channel partners and used equipment procurement sources
- The company has built an expansive and growing network of IT channel partners and enterprise end-user customers
- There are large and growing sources of used equipment from channel partners, corporations, and the open market
Gain enterprise customers with significant IT spend
- Tier 1 customers buy large quantities of networking equipment, including the world’s largest telecommunication and service providers.
- Gain international exposure and expertise with sales and logistics expertise across 50 countries.
- Current customers spend over $18B on data center-related equipment
Gain Thought Leadership and Certifications
- ISO 9001:2015 certified
- TL9000 certified
- Leaders within Green America, Global Reman Day, and other associations.
REVENUE AND ADJUSTED EBITDA
About Revenue Rocket and the process for Project Starfire
For more than two decades, Revenue Rocket has been dedicated to assisting IT service companies in both selling their business and expanding through mergers and acquisitions. As experts in the field, we understand what it takes for businesses in this rapidly evolving tech services industry to succeed. Because each company has unique needs and goals, we offer a customized program tailored to your firm’s specific requirements.
Look at our current deals to get a sense of the esteemed businesses we currently represent.
If Project Starfire is of interest to your firm, here’s how the process will begin:
First, we’ll schedule an introductory call with Revenue Rocket to understand your firm and M&A goals. Following this call, we will establish a non-disclosure agreement (NDA) to ensure that sensitive information remains secure. Once the NDA is in place, we will provide you with a confidential information memorandum (CIM) with more detailed information.
After sharing the CIM and learning more, we will answer your questions, supporting efforts with a data packet and management meetings as appropriate. Revenue Rocket will call for Indications of Interest (IoI) in November 2024 with a call for Letters of Intent (LOI) with selected parties emerging from IOIs.
With our extensive expertise and proven track record in the IT service industry, we are confident that we can help your firm achieve its goals and reach new heights of success. Please reach out today to get started.
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