Investment Will Enable Contegix to Expand Reach of Its High-Value Product Suite into New Markets
ST. LOUIS (BUSINESS WIRE) — Contegix, LLC, an Atlassian application hosting provider and a regional leader in cloud hosting, announced today that it has entered into a definitive agreement with Strattam Capital, a private equity firm that invests in high-potential business IT companies. As part of the transaction, Strattam is partnering with David Turner, who will join Contegix as its new CEO, and Contegix’s current management team to make a majority growth investment in Contegix.
Upon closing of the transaction, the company’s Co-Founder and current CEO, Matthew Porter, will assume the role of Vice Chairman. In this capacity, Mr. Porter will serve as an advisor to Mr. Turner and the management team as they lead the company into its next growth phase. Mr. Porter will retain a significant ownership position in Contegix.
“I am very excited about what this transaction means for our customers and our team,” said Mr. Porter. “I was impressed by the Strattam team’s experience in the hosting and digital services space, and by its understanding of the dynamics of our business. We will deploy these new resources to expand the Contegix platform, deliver the most innovative products and services, and to attract and retain the very best talent. Our goal is to take the lead in the market for critical application hosting services.”
Cloud and managed services hosting is growing quickly as companies seek economies of scale for ever increasing data loads. Additionally, application hosting is expected to grow faster than infrastructure-only solutions as customer and end-client demand become more sophisticated. Both markets are dynamic and highly fragmented and offer multiple opportunities for growth.
“Contegix has a great position in the market,” said Mr. Turner. “The company has established itself as a provider that can handle very complex environments, and the quality of its customer base reflects how valuable that service is and will continue to be as needs and requirements expand in the market for high-capacity virtual infrastructure.”
“We continue to see a number of opportunities in this segment of the market and believe the space will continue to grow quickly, and that companies like Contegix, which provide proven value-added services beyond core IT, will be the leaders in this area,” said Strattam Capital Co-Founder and Managing Director Adrian Polak. “We are very impressed by what Matthew and his team have built and look forward to collaborating with David and the entire Contegix leadership team to help Contegix continue to grow.”
Completion of the transaction, which is subject to customary closing conditions, is expected to take place in the fourth quarter of 2016.
Seyfarth Shaw LLP is serving as Contegix’s legal advisor. Wilson Sonsini Goodrich & Rosati is serving as Strattam’s legal advisor.
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 in the region. To learn more http://www.contegix.com.
Tom Prindiville, 314-622-6248
About Strattam Capital
Strattam Capital is a modern 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.
Strattam Capital Contact:
Erin Smith or Mariam Hussain, 212-371-5999
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