M/C Partners Closes Acquisitions of Carbon60 Networks and Gossamer Threads

January 8, 2019

M/C Partners Closes Acquisitions of Carbon60 Networks and Gossamer Threads

BOSTON–(BUSINESS WIRE)–M/C Partners today announced the acquisitions of Toronto, ON-based Carbon60 Networks, Inc. and Vancouver, BC-based Gossamer Threads Inc. (GT.net). The merger of these two managed cloud services companies will create a leading platform in the Canadian market. The combined company will operate under the name Carbon60 Networks.

“M/C has a long history investing in managed hosting and IT services businesses and their knowledge of our industry will be a tremendous asset to the company”

In addition to providing liquidity for selling shareholders, M/C Partners is investing capital to support organic growth and strategic acquisitions.

“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.”

Carbon60 was founded in 1999 and Gossamer Threads was founded in 1996. Each company has developed into a well-regarded managed 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 using 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.

Current Carbon60 CEO John Witte will lead the company. John, who is also an investor and Board Member, was previously an executive at a prior M/C portfolio company, Fusepoint, before it was sold to Savvis in 2010. 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.

“M/C has a long history investing in managed hosting and IT services businesses and their knowledge of our industry will be a tremendous asset to the company,” said John Witte. “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.”

Choate, Hall & Stewart LLP and Norton Rose Fulbright LLP served as legal advisers for M/C Partners. Blaney McMurtry LLP served as the legal adviser for Carbon60 Networks and Ian Muirhead served as the legal adviser for Gossamer Threads.

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.

Contacts

Bik Dutta
Carbon60 Networks
Vice President, Marketing
416-272-2554
Bik.dutta@carbon60.com

View source version here: https://www.businesswire.com/news/home/20190108005243/en/MC-Partners-Closes-Acquisitions-Carbon60-Networks-Gossamer

Zack Halpryn

Zack Halpryn is an Associate at M|C Partners, where he focuses on investment opportunities in the digital infrastructure and technology services sectors. Prior to joining MC, Zack worked at HarbourVest Partners, where he was focused on buyout and growth equity investments. Previously he worked at Performance Equity Management and Credit Suisse. Zack received a B.B.A in Finance (summa cum laude) from the Isenberg School of Management at UMass Amherst. He currently lives in Boston’s West End and in his spare time enjoys playing sports (volleyball, basketball, golf), reading and watching the Celtics.

Joined

2023

AFFILIATED PORTFOLIO

AccessParks
Ascend Technologies
Carbon60
Denovo
TowerCom

Contact

BOARD POSITIONS

celito

Established in 1999 and based in Raleigh, is a trusted, local communications and managed services provider to businesses leveraging its fully owned fiber network. celito creates technology solutions for businesses across all sectors both large and small. From supplying high-speed Internet service, to providing quality VoIP telecom service, to setting up your office network, they offer turnkey solutions from the desktop to the cloud

TEAM MEMBERS

GSC

RDC

KA

SECTOR

Jason P. Stutman

Jason Stutman is a Senior Fund Accountant at M/C Partners, responsible for the cash management of co-investment vehicles, preparing quarterly financial statements, and communication with Limited Partners. Prior to joining the firm in 2023, Jason worked in the Portfolio Analytics Group at HarbourVest Partners. He earned a BSBA with honors in Finance with a minor in Computer Information Science from The Ohio State University. Jason lives in South Boston and enjoys cheering on Boston sports teams, playing hockey and golf and traveling.

Joined

2023

AFFILIATED PORTFOLIO

Contact

BOARD POSITIONS

Cuba Burch Berner

Cuba Burch Berner is an Associate at M|C Partners, where he focuses on investment opportunities in digital infrastructure and technology services. Prior to joining the firm in 2022, Cuba was an Equity Research Associate at Citi covering infrastructure companies within the telecommunications industry, including data centers and wireless towers. He holds a B.S. in Mathematics with a specialization in Economics from the University of Chicago. Cuba currently lives in Boston’s West End and enjoys a myriad of outdoor activities including running, swimming, hiking, and skiing.

Joined

2022

Contact

AFFILIATED PORTFOLIO

Ascend Technologies
Consortium Networks
C3 Integrated Solutions
SoniqWave

AccentHealth

AccentHealth operates an out-of-home advertising network that reaches over 12,000 physician office waiting areas in the U.S. – JOHN WATKINS

TEAM MEMBERS

JWW

SECTOR

IT SERVICES

James F. Wade

Jim Wade co-founded M/C Partners in 1986 with Dave Croll. He has been investing in communications and technology services since the advent of wireless and broadband, cornerstones of the firm’s sector focus. As Chairman, he manages the firm’s investment process, and continuously seeks out management teams, company prospects and financial resources to grow the portfolio. Jim’s successful track record includes MetroPCS (IPO), Lightower Holdings (acquired by Berkshire Partners), Cavalier Telephone (acquired by PAETEC), NuVox Communications (acquired by WindStream), Attenda (acquired by Darwin Private Equity), Melita (acquired by Apax Partners), PR Wireless (joint venture with Sprint affiliate in Puerto Rico), Thrive Networks (acquired/recapitalized by Court Square) and Involta (acquired by Carlyle Group). Today he serves as a director on the Board of Connectivity Wireless and has responsibility for Omega Wireless. Jim graduated from the University of Notre Dame a B.B.A in Finance and received an MBA from Harvard Business School. He lives outside Boston with his wife and four children. Jim was an avid boater and is now an average golfer.

JOINED

1986

Contact

BOARD POSITIONS
Connectivity Wireless

Abhishek Rampuria

Abhishek (A.B.) is a Partner at M/C Partners, where he leads origination, deal diligence and portfolio company support for investments in a variety of communications and technology services segments. He currently serves on the Board of Ascend Technologies, Connectivity Wireless, Edafio Technology Partners, TowerCom and serves as a Board Observer for Thrive Networks. A.B. previously served as a Board Observer for Ensono (acquired by KKR) and QOS Networks (acquired by Zayo). Prior to joining M/C Partners in 2015, A.B. worked at Altman Solon (formerly Altman Vilandrie), a technology, media & telecommunications focused strategy consulting firm, where he completed projects for both operating companies and private equity investors. A.B. received a B.S. in Materials Science & Engineering from the Massachusetts Institute of Technology. He lives in Boston’s South End and outside of work, enjoys skiing, cycling, traveling and cheering on his home-town Patriots and Celtics.

Joined

2015

AFFILIATED PORTFOLIO

Thrive Networks

Contact

BOARD POSITIONS

Ascend Technologies
Connectivity Wireless
Edafio Technology Partners
TowerCom