VSS Capital Partners Completes Successful Exit from Centroid

• Transaction Serves as Strong Example of VSS's Growth-Oriented, Flexible, Structured Capital Approach
• Investment Led to Tripling of Revenue and EBITDA Over Five-Year Holding Period

NEW YORK--(BUSINESS WIRE)--VSS Capital Partners ("VSS"), a leading private investment firm specializing in the tech-enabled business services, education and healthcare sectors, today announced that it has realized its investment in Centroid Systems (“Centroid” or the” Company”), a leading technology services company focused on Oracle Cloud solutions for middle-market and enterprise clients. Financial details of the private transaction were not disclosed.

Founded in 1997, and headquartered in Troy, Michigan, Centroid is one of the largest Oracle Cloud Service Provider (CSPs) in North America and is a provider of managed cloud services and enterprise work-load consulting services for organizations across several industries, including technology, manufacturing, automotive, personal care, medical devices, and others.

"We've greatly enjoyed our partnership with the Centroid management team, particularly its founders, Scott Morrell, Eric Reed, and Jim Brull, and it was a privilege to support the Company's strategic expansion and significant growth with VSS's IT services expertise," shared Trent Hickman, Co-Managing Partner at VSS. "We're proud to have had the opportunity to support their growth journey and look forward to following their continued success in the years ahead."

Following VSS's investment in 2021, Centroid undertook a number of organic initiatives to drive operational improvement, such as the strengthening of the senior leadership team, including the hire of Ken Bowles as CFO in 2025, a significant expansion of Centroid's sales team from ten to twenty-five people, the ongoing shift in revenue mix towards recurring revenue, and support for the launch of several impactful AI initiatives. The company also completed four strategic add-on acquisitions during this period.

"We are deeply grateful for the guidance that Trent Hickman and the VSS team have shown us over the years. Their true partnership and strategic support have been instrumental in our continued growth to becoming the largest Oracle Cloud Infrastructure partner in North America," added Morrell. "As we embark on this next stage of our company's growth, we are confident that the foundation built through our partnership with VSS positions us well to capitalize on future opportunities."

Guggenheim Securities served as financial advisor, and Willkie Farr & Gallagher LLP served as legal advisor to Centroid and VSS.

About VSS Capital Partners

Headquartered in New York, VSS is a private investment firm that invests in tech-enabled business services, education and healthcare companies. Since 1987, VSS has partnered with lower middle-market companies, working closely with management teams, to facilitate their next stage of growth. VSS provides capital for growth financings, recapitalizations, strategic acquisitions, and buyouts with the flexibility to invest control or non-control capital, based on the needs and objectives of each company. With approximately $4 billion in committed capital across eight funds, VSS has completed over 100 platform investments and more than 600 add-on acquisitions.

Since 2023, VSS has been named to Inc.’s annual Founder-Friendly Investors list. VSS was recognized as #1 in PitchBook’s 2024 Global Mezzanine and North America Private Debt categories. VSS also secured the #2 ranking in PitchBook’s Global Private Debt category, with three rankings from its Global Manager Performance Score League Tables through December 31, 2024. For more information, visit https://www.vss.com

About Centroid

Centroid is a premier Oracle Cloud Infrastructure service provider with a nearly 30-year relationship with Oracle. The Company offers a comprehensive suite of Oracle-focused IT services, including consulting & cloud migration services, managed services, managed support renewals, OCI capacity & consumption, and engineered systems, to clients across a variety of end-markets. Additional information is available on the Company’s website: www.centroid.com