VSS Capital Partners, a private investment firm that invests in the business services, healthcare, education and information industries, completed a growth investment in Centroid Systems, a provider of managed cloud services and enterprise workload consulting services. CIBC Innovation Banking provided senior debt financing to facilitate the transaction. Financial terms of the private transaction were not disclosed.
Headquartered in Troy, MI, Centroid is a certified Oracle Cloud Service Provider (CSPs) in North America, where it has won 14 North American Partner of the Year awards from Oracle. Centroid provides Oracle enterprise workload consulting and managed services across cloud providers, including Azure, Amazon, Google, IBM and Oracle, as well as private cloud technology, and serves U.S. companies across different industries, including technology, manufacturing, automotive, personal care and medical devices, among others. The company’s core offerings include managed cloud services, consulting services and engineered solutions.
“Centroid is meeting the strong demand for digital transformation services from today’s fast-growing businesses that require significant Oracle expertise to accelerate and implement their cloud-based solutions and digital transformation,” Trent Hickman, managing director of VSS Capital Partners, said. “Many of these projects that require comprehensive cloud support services generate recurring revenue and involve multi-year contracts that help ensure the migration to cloud, integration, managed services and remote computing needs of the Oracle ecosystem are managed effectively and seamlessly.”
The Oracle enterprise resource planning (ERP) services market has high growth potential and is highly fragmented and complex, as companies are increasingly seeking specialized expertise to successfully implement next-generation digital transformation strategies as cloud computing continues to evolve.
“We could not be more thrilled to partner with VSS at a time when a large number of businesses are expected to migrate their ERP systems to the public cloud in North America over the next five to 10 years,” Scott Morrell, CEO and managing partner of Centroid Systems, said.
“We believe this backlog creates a strong secular tailwind to drive demand for deep industry knowledge, experience and broad range of capabilities for years to come,” Eric Reed, managing partner of Centroid Systems, said.
“Together with VSS, we have already identified several strategic acquisition opportunities to further strengthen our managed services, digital transformation, analytics and public cloud solution capabilities,” Jim Brull, managing partner of Centroid Systems, said.
“This transaction demonstrates our ability to structure flexible capital solutions that enable founder-owned companies like Centroid to pursue new growth opportunities, benefit from the additional operational, financial and IT industry resources that VSS brings to the table, plus strongly align investor and company management interests,” Yash Kandoi, principal at VSS Capital Partners, said.
Willkie Farr & Gallagher provided legal advice to VSS Capital Partners in this transaction. American Discovery Capital acted as financial advisor and Morgan, Lewis & Bockius provided legal advice to Centroid Systems in connection with this transaction.
