Marathon Technologies Case Study

Headquartered in Boxborough, Massachusetts, Marathon Technologies is a provider of fault tolerant computing solutions and is the only such developer for industry-standard Windows/Intel based systems. Earlier in its history Marathon raised over $40 million from investors such as GE Capital and Bain Capital, but the business was hit hard by the economic downturn in the early 2000s. In order to recapitalize the business, Marathon filed Chapter 11 with the support of new investors and retained Boston Corporate Finance to assist in additional fundraising efforts.

Boston Corporate Finance was able to secure $8.8 million in venture financing from leading firms such as Atlas Venture, Longworth Venture Partners and Presidio Venture Partners. BCF also participated in the financing. The funding allowed for 100% payment to creditors and provided Marathon with a new capital structure and financial backing from committed institutional investors. From a business perspective, the capital infusion allowed Marathon to develop a software-only product and helped facilitate a partnership with a Global 100 company.

BCF members helped Marathon to develop a strategic investment thesis, create valuation benchmarks, identify and contact financiers, and structure and negotiate the terms of the financing. “The BCF professionals were quick to understand the significant potential of Marathon Technologies; were able to communicate this value to their network of premier venture capital sources; and were instrumental in closing a complex transaction” said George Tranos, President and CEO of Marathon Technologies.