DSS and Contegix Combine to Form Cloud Services Leader

READING, Pa.--()--Distributed Systems Services, Inc., (“DSS”), announced today that it has combined with Contegix, LLC, in a joint transaction financed by Strattam Capital, a private equity firm that invests in high-potential business IT companies. DSS is a Reading, PA based IT solutions provider that designs, hosts and manages IT infrastructure solutions for its clients. Contegix, which previously announced that it had entered into a definitive agreement with Strattam Capital, is a leading provider of managed application hosting, cloud and storage solutions. Strattam’s investment is intended to accelerate growth, with an immediate planned expansion to Kansas City, and other strategic initiatives pre-funded at close. The combined company now serves more than 700 clients and generates in excess of $50 million in annual revenue, with 190 employees between its two locations in Reading, PA and St. Louis, MO. The terms of the transaction were not disclosed. The merged company will operate under the Contegix name.

“We’ve built up a broad array of products and services for our clients, and as their needs grew, we’ve grown with them,” said Jim Sweeney, founder and CEO of DSS, who will join the board of directors at Contegix. “The next logical step is providing additional capacity and geographic reach to continue to serve our clients’ increasingly complex and sophisticated workloads. Combining with Contegix expands our portfolio, bringing added value to our clients and new opportunity to our team members.”

“DSS has fostered true partnerships with its clients by becoming an extension of their organizations and delivering tremendous value,” said David Turner, CEO of Contegix. “DSS provides a breadth of offerings from hosting to 24/7 support tailored to client requirements. Its commitment to ‘white glove’ service is a mindset the Company will continue to embrace as well as going beyond for its clients.”

“The managed hosting and application hosting market has seen a great deal of change over the past decade. There is a lot of room to meet the fast-changing demands of clients who want full-service support for their growing, evolving businesses,” said Strattam Capital Co-Founder and Managing Director Adrian Polak. “These two companies really complement one another. Together, their product and service offerings and increased geographic presence makes them an even more valued partner.”

Senior debt financing for the transaction was provided by Comerica, Inc. Salter McGowan Sylvia & Leonard served as DSS’s legal advisor. Seyfarth Shaw LLP served as Contegix’s legal advisor. Wilson Sonsini Goodrich & Rosati served as Strattam Capital’s legal advisor.

About DSS, Inc.

DSS is an IT solutions provider that helps mid-size businesses simplify infrastructure management, improve productivity, and optimize IT resources. The Company delivers IT design, hosting, and managed services with the quality expected from industry leaders and the personal attention, flexibility and value of a local partner. DSS also maintains esteemed levels of partnership with industry leaders as a value-added reseller. The Company operates Tier III data centers and 24/7 managed services outside Philadelphia, PA. Client solutions are managed in the cloud, on premise, and via hybrid solutions. To learn more visit www.dsscorp.com.

About Contegix, LLC

Contegix is a leading cloud computing and managed application hosting provider that delivers Go Beyond support to a wide variety of global customers. The Company operates state-of-the-art, N+1 data centers, located in St. Louis, Dallas, and Amsterdam. A staff of Tier 3 engineers provides 24/7 application management and managed services with a specialty focus on supporting Atlassian application environments. With four major network providers and fully redundant critical systems, Contegix offers the most advanced customer hosting solutions available. To learn more visit www.contegix.com.

About Strattam Capital

Strattam Capital is a private equity firm that takes an innovative and focused approach to investing in high-potential companies within the business information technology market. Our entrepreneurial-minded team applies our operational engagement strategy to deliver a better future for our companies. To learn more visit www.strattam.com.

Contacts

DSS:
Ann Borza, 610 927-2038
aborza@dsscorp.com
or
Contegix:
Tom Prindiville, 314-622-6248
tom.prindiville@contegix.com
or
For Strattam Capital:
Abernathy MacGregor
Erin Smith / Mariam Hussain, 212-371-5999
eks@abmac.com / mzh@abmac.com

Contacts

DSS:
Ann Borza, 610 927-2038
aborza@dsscorp.com
or
Contegix:
Tom Prindiville, 314-622-6248
tom.prindiville@contegix.com
or
For Strattam Capital:
Abernathy MacGregor
Erin Smith / Mariam Hussain, 212-371-5999
eks@abmac.com / mzh@abmac.com