Oaktree's Scale Computing Buys Adaptiv Networks
Scale Computing, a portfolio company of Oaktree, has acquired Adaptiv Networks. The acquisition is a strategic tuck-in deal designed to expand Scale Computing's capabilities in edge computing and SD-WAN (Software-Defined Wide Area Networking). This move illustrates a common private equity strategy of building platform companies through targeted bolt-on acquisitions.
- The deal was funded by private equity sponsor Oaktree Capital Management, which employs a value-oriented, opportunistic approach to its private equity investments and platform-building strategies. - This acquisition is part of a larger build-up strategy; the current Scale Computing entity was formed in July 2025 when another edge company, Acumera, acquired the original Scale Computing and rebranded under its name. - The transaction combines Scale's edge computing platform with Adaptiv's SD-WAN and Secure Access Service Edge (SASE) offerings, creating a more comprehensive solution for distributed enterprises. Adaptiv’s solutions will be rebranded and marketed under the SC//Connect™ brand. - This deal is set against the backdrop of a rapidly expanding edge computing market, which is projected to grow at a CAGR of over 30% and reach hundreds of billions of dollars by the early 2030s. - Similarly, the SD-WAN infrastructure market is experiencing significant growth, with one forecast predicting a compound annual growth rate of 38.9% through 2030, driven by the enterprise shift to cloud-based services and more complex network security needs. - The combined company will serve a customer base of more than 9,000 organizations, with a notable presence in the retail and quick-service restaurant (QSR) industries. - Adaptiv Networks, founded in 2002, expanded its portfolio and patent holdings through the acquisitions of LiveQoS in 2019 and ELFIQ Networks in 2020. - TD Securities acted as the exclusive financial advisor to Scale Computing on the transaction, with Dubois Bryant & Campbell LLP and Gowling WLG serving as legal counsel.
