D.A. Davidson & Co. announced today that it has served as exclusive financial advisor to Answer 1, LLC in securing a significant growth capital investment from Sunstone Partners, a growth equity firm that invests in technology-enabled services and software companies.
Headquartered in Phoenix, Ariz., Answer 1 is a leading virtual receptionist company serving small and medium-sized businesses across the United States. Answer 1 supports thousands of clients across a wide spectrum of end markets, providing a comprehensive solution set of receptionist and call center services that increase clients’ lead capture rates, reduce costs and improve brand image. Answer 1 has nearly tripled in scale since 2015, and this financing marks the first institutional equity capital ever raised by the company.
“Parker Davis, CEO of Answer 1, and the rest of the Answer 1 management team have done a tremendous job growing the company over the past several years,” said Joe Morgan, managing director at D.A. Davidson. “With this investment and Sunstone as a partner going forward, Answer 1 is primed to accelerate growth and further establish itself as the dominant nationwide virtual receptionist solution.”
Answer 1 has been able to achieve its impressive growth through a combination of industry-leading technology solutions and high level of customer service. Additionally, the company has completed three successful acquisitions that significantly increased the size of its customer base and further expanded the company’s presence throughout the United States.
“We are thrilled to have worked with the D.A. Davidson technology investment banking team in this transaction,” Davis said. “Through their deep industry knowledge and relationships, they found us the right financial partner that will enable us to take Answer 1 to the next level.”
D.A. Davidson’s investment banking division is a leading full-service investment bank that offers comprehensive financial advisory and capital markets expertise. The group has extensive transaction experience serving middle market clients worldwide across five industry verticals: consumer, diversified industrials, financial institutions, real estate and technology.
Together with its European strategic partner, MCF Corporate Finance, D.A. Davidson originates and executes transatlantic M&A transactions under the common brand of D.A. Davidson MCF International.
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 and headquartered in Montana, with corporate offices in Denver, Los Angeles, Portland and Seattle, the company has approximately 1,350 employees and offices in 25 states.
Subsidiaries include: D.A. Davidson & Co., the largest full-service investment firm headquartered in the Northwest, providing wealth management, investment banking, equity and fixed income capital markets services and advice; Davidson Investment Advisors, a professional asset management firm; D.A. Davidson Trust Company, a trust and wealth management company; and Davidson Fixed Income Management, a registered investment adviser providing fixed income portfolio and advisory services.
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