D.A. Davidson Advises Serves as Exclusive Financial Advisor to Palm Peak Capital in Acquisition of Domaille Engineering and Secures Acquisition Financing
D.A. Davidson & Co. (“D.A. Davidson”) today announced that it acted as the exclusive financial advisor to Palm Peak Capital, LLC (“Palm Peak”) in connection with its strategic acquisition of Domaille Engineering (“Domaille” or the “Company”), as well as in structuring and raising senior secured debt financing and equity co-investment from Stellus Capital Management, LLC (“Stellus”) to support the transaction. This milestone marks a key expansion for Palm Peak within the high-growth fiber optic and digital infrastructure market.
The partnership between Palm Peak and D.A. Davidson was instrumental in successfully executing the transaction. Jeremy Stone, Managing Partner at Palm Peak, highlighted the critical role D.A. Davidson played throughout the process, noting, “D.A. Davidson’s deep industry knowledge in communications technology and digital infrastructure, extensive relationships in the sector, and transaction expertise were pivotal in achieving this outcome. We greatly appreciate the D.A. Davidson team’s guidance on our acquisition of Domaille, as well as their efforts in securing a flexible and highly attractive financing package. This support allowed us to close the acquisition on an accelerated timeline, creating immediate value for our investors and stakeholders.”
Founded in 1990 and headquartered in Rochester, Minnesota, Domaille Engineering has a rich history of innovation as a division formerly part of ADDMAN Engineering. The Company specializes in the design and manufacture of cutting-edge equipment and tools for producing advanced high-bandwidth fiber optic cables. Its products serve a diverse clientele, including leading cable assembly houses and commercial clients that supply data centers, telecommunications providers, and other enterprise-level end markets. Domaille’s leadership team brings extensive technical knowledge and deep industry experience, reinforcing the Company’s reputation as a market leader in fiber optic manufacturing solutions.
The acquisition of Domaille aligns with Palm Peak’s broader strategy to expand its presence in the rapidly growing fiber optic and digital infrastructure sector. According to Dante Pavone, Vice President at Palm Peak, the fiber optics industry is poised for substantial growth, driven by multiple structural trends.
“The fiber optics market is experiencing robust demand, fueled by the expansion of data centers, telecommunications networks, and the increasing proliferation of internet-of-things devices,” Pavone explained. “Generative AI, ongoing cloud migration, and surging data traffic are expected to drive double-digit annual growth in fiber demand over the next several years. Concurrently, continued telecom investment—including large-scale fiber-to-the-home initiatives, network upgrades, and global bandwidth expansion—will further reinforce the need for advanced manufacturing equipment, positioning Domaille at the center of this growth trajectory.”
The strategic importance of Domaille’s product offerings cannot be understated. By providing specialized machinery and tools for high-bandwidth fiber optic cable production, Domaille enables its customers to meet the evolving technical requirements of next-generation networks and data transmission infrastructure. The Company’s solutions are recognized in the industry for their precision, reliability, and performance, making Domaille the preferred partner for organizations seeking to optimize fiber optic production efficiency and quality.
From a financial perspective, the transaction was supported by a combination of senior secured debt financing and equity co-investment from Stellus Capital Management. This financial structure provides Palm Peak with the flexibility to execute its growth strategy while optimizing capital deployment. Brad Gevurtz, Managing Director in the Technology Investment Banking Group at D.A. Davidson, emphasized the strategic rationale behind the transaction: “Palm Peak has acquired a company widely regarded as the market leader and industry gold standard in fiber optic cable manufacturing equipment. This transaction represents a significant step forward in Palm Peak’s strategy to build a robust platform in the high-growth fiber optic and digital infrastructure market.”
D.A. Davidson’s role encompassed both advisory and financing functions, highlighting the firm’s comprehensive capabilities in serving financial sponsors. Yaron Redlich, Head of the Financial Sponsors Group at D.A. Davidson, stated, “We are pleased to have worked closely with Palm Peak on their acquisition of Domaille, and to have arranged and placed the acquisition financing to support this strategic transaction. Our team worked diligently to ensure that the financing structure met Palm Peak’s objectives while maintaining alignment with long-term growth plans.”
Amy Johnson, Managing Director and Head of Debt Advisory at D.A. Davidson, elaborated on the team’s approach, noting the importance of speed, certainty, and flexibility in acquisition financing. “Our goal was to provide Palm Peak with a financing solution that enabled them to deliver both speed and certainty to the seller, while offering a capital structure that supports their growth ambitions.
We are pleased that our Debt Advisory team was able to provide a solution that balanced these priorities and contributed to a successful closing. This transaction underscores our capability in arranging acquisition financing solutions tailored for financial sponsors, particularly in complex and dynamic sectors such as technology and digital infrastructure.”
The transaction also highlights the broader market dynamics driving investment in fiber optic infrastructure. As data consumption continues to grow exponentially, companies operating in high-bandwidth networks and data centers are under increasing pressure to expand capacity and improve performance. Domaille’s innovative equipment plays a crucial role in meeting these demands, enabling manufacturers to produce fiber optic cables that support higher speeds, greater reliability, and enhanced connectivity for end users. The acquisition positions Palm Peak to capitalize on these trends, leveraging Domaille’s technical expertise and industry reputation to drive growth and innovation across its portfolio.
This acquisition further demonstrates Palm Peak’s commitment to identifying and partnering with market-leading companies that offer both technological leadership and scalable growth potential. By integrating Domaille into its platform, Palm Peak gains access to a suite of advanced manufacturing capabilities, an experienced management team, and a strong customer base that spans multiple high-growth sectors. The combination of strategic vision, technical excellence, and financial backing creates a compelling value proposition for stakeholders and positions Palm Peak for long-term success.
Looking ahead, Palm Peak intends to leverage Domaille’s capabilities to support continued innovation in fiber optic production, address the growing needs of data-intensive industries, and expand its reach in both domestic and international markets. With robust financing in place and a proven advisory partner in D.A. Davidson, the Company is well-positioned to execute on its strategic initiatives and achieve sustained growth in the fiber optic and digital infrastructure space.
In summary, the acquisition of Domaille Engineering represents a significant milestone for Palm Peak Capital, combining industry-leading technology with strategic financial support. D.A. Davidson’s advisory and financing services were instrumental in structuring a transaction that delivers both speed and certainty, while providing a flexible and attractive capital solution. This partnership underscores the strength of D.A. Davidson’s expertise in technology investment banking, financial sponsor advisory, and debt advisory, particularly in high-growth sectors such as communications technology and digital infrastructure.
Through this transaction, Palm Peak Capital has reinforced its position as a strategic investor in fiber optics and digital infrastructure, while Domaille Engineering gains a financial partner to support its ongoing growth and innovation. Together, the companies are poised to capitalize on the expanding opportunities in next-generation networks, data centers, and the broader digital economy, creating long-term value for shareholders, customers, and industry stakeholders alike.
