Less than a month after announcing a new private equity owner, Contegix, the St. Louis-based cloud hosting provider, has announced a merger agreement with Reading, Pennsylvania-based IT solutions provider Distributed Systems Services Inc. (DSS).
Terms of the deal were not released. The combined company, which will be called Contegix, will have about $50 million in annual revenue, nearly 200 employees and more than 700 clients.
Strattam Capital, the Austin-based private equity firm that bought into Contegix earlier this month, helped arrange the deal. Senior debt was provided by Comerica Inc. Salter McGowan Sylvia & Leonard served as legal adviser to DSS. Wilson Sonsini Goodrich & Rosati acted as legal adviser to Strattam.
Jim Sweeney, CEO of DSS, will join Contegix as a director.