Cloud Hosting Provider Contegix Merges With Distributed Services Systems

Cloud computing and managed application hosting provider Contegix merged with managed service provider Distributed Systems Services this month, creating a new entity poised to capture the increasing opportunities around both on-premise and cloud-based hybrid environments.

DSS, No. 416 on the 2016 CRN Solution Provider 500, is a "full-line reseller and full-line managed service provider," Ann Borza, the company’s vice president of sales, told CRN.

Contegix's merger with DSS will give both companies something they haven’t had before, marrying Contegix's cloud hosting and application capabilities with DSS' reseller partnerships and managed services background, according to Borza.

The result, she said, will give the new company a portfolio that is poised to capture new opportunities.

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"The whole hybrid cloud in the marketplace is certainly a need that this combined organization can fulfill. DSS has the capabilities to run and support a client's on-premise environment … and now, together, both companies are looking to expand and be able to leverage the [Amazon Web Services] and Azure public clouds," she said.

Contegix, featured on the 2016 CRN MSP 500 list, financed the deal through private equity firm Strattam Capital, which had bought a majority share of Contegix earlier this month. Strattam Capital appointed former DigitalGlobe senior vice president David Turner as the company’s new CEO and appointed founder and former CEO Matthew Porter to the role of vice chairman. Financial details of the transaction were not disclosed.

"Strattam's investments have given us the flexibility to grow and envelop new technology, allowing us to bring new opportunities to our current and potential clients. … The infusion of capital is allowing us to expand and better support our clients,” Tom Prindiville, Contegix vice president of marketing, told CRN.

St. Louis-based Contegix, which since its inception has focused on cloud computing and managed hosting, has not worked directly within customers' infrastructure. The addition of DSS’ capabilities and partnerships with vendors including Microsoft and IBM will enable Contegix to push deeper into that space, according to Prindiville.

“This merger will give us the tools to go deeper and support our clients' infrastructure [and] will fill a lot of holes for both companies,” he said.

Following the close of the deal, the merged company adopted the Contegix name and Jim Sweeney, founder and CEO of Reading, Pa.-based DSS, was appointed to the board of directors at Contegix.

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