M/C Partners has acquired Toronto-based Carbon60 Networks Inc and Vancouver-based Gossamer Threads Inc, both managed cloud services providers.
Terms weren’t disclosed for the deal, which will see the companies combined under the name Carbon60 Networks.
John Witte, Carbon60’s current CEO, will lead the new Canadian business. Alex Krohn, founder and CEO of Gossamer Threads, will assume the role of CTO.
M/C’s investment will provide liquidity for selling shareholders. Carbon60 has been backed since 2014 by Canadian mid-market private equity firm Roynat Equity Partners.
M/C, a U.S. communications and IT services private equity firm, will also provide capital to support the new Carbon60’s organic growth and strategic acquisitions.
Carbon60 Networks Secures Investment from M/C Partners and Merges with Gossamer Threads
January 08, 2019
TORONTO–(BUSINESS WIRE)–Carbon60 Networks Inc. today announced an investment from M/C Partners, a leading communications and IT services-focused private equity firm based in Boston, MA. Simultaneously, M/C Partners is acquiring Vancouver, BC-based Gossamer Threads Inc. (GT.net), a managed cloud services company, and merging it with Carbon60 to create a leading platform in the Canadian market. The combined company will operate under the name Carbon60 Networks.
In addition to providing liquidity for selling shareholders, M/C Partners is investing capital to support organic growth and strategic acquisitions.
“M/C has a long history investing in managed hosting and IT services businesses globally and their knowledge of our industry will be a tremendous asset to the company,” said Carbon60 CEO John Witte, who was previously an executive at a prior M/C portfolio company, Fusepoint before it was sold to Savvis in 2010. “They are the perfect partner for us at this stage of our growth as we strive to lead the managed cloud market in Canada and I am thrilled to be working with them for a second time.”
Gossamer Threads was founded in 1996 and like Carbon60, has developed into a well-regarded cloud services provider in its respective market with strong technical capability and a commitment to the highest standards of customer service. The combined company is experiencing success in the burgeoning managed third party cloud space on AWS and Azure and expects to accelerate this category along with its private cloud offerings. In addition, both companies have expertise in application hosting, with a focus on Content Management Systems (CMS) hosting. The combined Carbon60 business will be the dominant CMS hosting provider in Canada.
“These businesses are natural complements to one another and create a combined entity with enhanced scale, technical expertise and geographic reach,” said Gillis Cashman, Managing Partner at M/C Partners. “We are excited to partner with these two exceptional teams to build a market-leading cloud services provider. We anticipate growing the Carbon60 platform with future acquisitions that will add capabilities and help the company expand into new markets.”
Current Carbon60 CEO John Witte will continue to lead the company. John is also an investor and Board Member. Alex Krohn, founder and CEO of Gossamer Threads, will continue to have a key role at the company as CTO, in addition to being an investor and Board Member.
Blaney McMurtry LLP served as the legal adviser for Carbon60 Networks and Ian Muirhead served as the legal adviser for Gossamer Threads. Choate, Hall & Stewart LLP and Norton Rose Fulbright LLP served as legal advisers for M/C Partners.
About Carbon60 Networks
Carbon60 Networks specializes in delivering end-to-end managed hosting solutions for public and private sector organizations with business-critical workloads. Carbon60 provides secure and high-performance hosting services using its Canadian cloud platform in Toronto and Kelowna and the leading hyperscale clouds for hybrid IT solutions. The company also has a niche in application hosting for enterprise-grade WordPress and Drupal CMS. Carbon60 guides customers on their cloud journey and can engage with clients at any stage of their transition. Carbon60 provides a white-glove customer experience with a deep level of technical support services combined with a nimble approach making them the trusted choice for companies that need a partner to deliver solutions with exceptional reliability, performance and security. For more information, please visit www.carbon60.com.
About Gossamer Threads
Gossamer Threads provides performance hosting options (dedicated, clustered, private cloud) and application hosting solutions that come standard with high value managed services like optimization testing, monitoring, security, back-up and restoration. The company also offers add-on managed services, including access to a Content Delivery Network, Application and DB Optimization, Disaster Recovery, and assistance with PCI/DSS and HIPAA Compliance. Based in Vancouver BC, Canada, Gossamer Threads maintains four geographically separated data centers in Vancouver, Toronto, New York and London to ensure high data availability and security. For more information, please visit www.gt.net.
About M/C Partners
Based in Boston, M/C Partners is a private equity firm focused exclusively on the communications, information technology services and media sectors. The firm has invested over $2.2 billion of capital into nearly 100 companies, generally investing in companies with enterprise values of $25 million to $250 million. Related current and prior investments include Cavalier Telephone, Ensono, Everstream, Fusepoint, Denovo, ICG Communications, Involta, Lightower, NuVox, Thrive Networks and Zayo Group. The firm has strong institutional backing from the nation’s leading pension funds and endowments as well as a long track record of success. For more information, visit www.mcpartners.com.
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