Harbor Ridge Capital Completes 3rd Cloud Services

Acquisition of 2017 at Above Market Valuation

Advising BlackMesh in its Sale to Contegix

LOS ANGELES (June 13, 2017) – Harbor Ridge Capital (HRC), a leading technology-focused M&A advisory group, with deep expertise in the cloud and tech enabled services space, has advised BlackMesh on its sale to Contegix. This marks the third cloud service acquisition of the year for HRC, and again resulted in very happy clients and sellers, as HRC was able to secure an above market valuation, with an advantageous acquisition structure. The other two transactions this year include an acquisition of AWS DevOps partner Stelligent by Hosting.com, and a sale of Cloud9 Realtime to Abacus Data Systems. Securities for the transaction were offered through Fallbrook Capital Securities Corp. The terms of the transaction were not disclosed.

“Having known Eric and Jason since 2011, I’ve had the privilege to see the Company progress over the years, and develop a relationship with a great set of managers,” said Cyrus Maghami, Managing Director of Harbor Ridge Capital. “We were aligned throughout our discussion regarding personal motivations, the key value drivers, and timing of when to maximize value for the shareholders. I am grateful for having spear headed this engagement, and thrilled for the owners regarding the results of the transaction.”

“Without Cyrus and HRC, the transaction that BlackMesh went through would not have been possible,” said Jason Ford, co-founder and CTO. “Every step of the way, Cyrus was engaged, proactive, and became part of the team.”

BlackMesh, founded in 2003, has in-depth expertise supporting and managing Drupal and other complex open-source web content management platform technologies including Magento and WordPress. BlackMesh manages the application down to the infrastructure layer, offering end-to-end managed hosting. These solutions empower customers to retain complete control over their application environments, while dramatically reducing the time and costs associated with in-house administration. The company delivers high-touch, cloud-based solutions for organizations of all sizes including government agencies, nonprofits, development groups and large corporations. BlackMesh is headquartered in Ashburn, Virginia and hosts and manages its customers from three SSAE-16 SOC 2 certified datacenters.  

Contegix, is a leading application management services provider backed by private equity firm Strattam Capital. The combined Company now serves more than 1,200 customers in both the public and private sectors.

“The addition of BlackMesh is a significant leap forward for Contegix and our customers,” said David Turner, CEO of Contegix. “BlackMesh’s advanced web content management capabilities, coupled with their federal security and compliance certifications, align very well with our existing portfolio of application management services designed for the DevOps community. At the same time, our shared commitment to ‘white glove’ service will ensure that we continue to go beyond for our clients.”

Jason Ford, CTO and co-founder of BlackMesh, will assume the role of CTO and CISO of Contegix and will help lead the integration.

“Together, Contegix and BlackMesh will enhance both companies’ ability to serve clients in a secure, efficient, and scalable fashion,” said Ford. “We are very excited to join the Contegix team and to continue to provide high-touch service and support to our customers while expanding the services we offer.”

About Harbor Ridge Capital

Harbor Ridge Capital is a leading, technology-focused M&A advisory group focused on the lower middle market, with a deep expertise in cloud and tech enabled service companies. HRC advises on sell-side, buy-side and raising institutional capital, putting the client’s objectives and expectations first, translating to superior results. In working with HRC, entrepreneurs can be assured their companies will be optimally positioned, properly exposed to the right strategic investors and buyers, and allowed for the highest probability of a close. To learn more, visit www.harborridgecap.com

About BlackMesh

BlackMesh is a leading managed service provider, delivering secure, compliant, and scalable application hosting platforms and cloud-based solutions to businesses of all sizes. Providing innovative solutions, BlackMesh system administrators are experienced at scaling web to a multi-tier high availability architecture. Combining high-performance technologies with unlimited support, BlackMesh provides customers the tools they need to lower costs and accelerate growth. To learn more, visit www.blackmesh.com.

About Contegix

Contegix® provides application management serving the DevOps community as well as a suite of cloud and managed services to enterprise customers. Contegix is the global leader in Atlassian hosting, and has deep expertise in the applications most used by the DevOps community. By providing infrastructure, deep expertise, and talent we allow businesses and their developers to focus on company innovation and growth. Contegix operates state-of-the-art N+1 data centers located in St. Louis and Kansas City, Missouri; Reading and Bethlehem, Pennsylvania; Dallas, Texas; and Amsterdam. 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.

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Stephanie Peters, Social Lighthouse
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