DSS and Contegix Combine to Form Cloud Services Leader

The following Press Release was issued today announcing a merger between Contegix and Distributed Systems Services, Inc. of Reading, PA.  This is all part of our mission to grow that was made possible through the recent equity investment in Contegix by Strattam Capital. We are excited about this amazing opportunity and all of the added benefits it allows us to offer our customers.



Reading, PA – November 29, 2016 – Distributed Systems Services, Inc., (“DSS”), announced today that it has combined with Contegix, LLC, in a joint transaction financed by Strattam Capital, a private equity firm that invests in high-potential business IT companies. DSS is a Reading, PA based IT solutions provider that designs, hosts and manages IT infrastructure solutions for its clients. Contegix, which previously announced that it had entered into a definitive agreement with Strattam Capital, is a leading provider of managed application hosting, cloud and storage solutions. Strattam’s investment is intended to accelerate growth, with an immediate planned expansion to Kansas City, and other strategic initiatives pre-funded at close. The combined company now serves more than 700 clients and generates in excess of $50 million in annual revenue, with 190 employees between its two locations in Reading, PA and St. Louis, MO. The terms of the transaction were not disclosed. The merged company will operate under the Contegix name.

“We’ve built up a broad array of products and services for our clients, and as their needs grew, we’ve grown with them,” said Jim Sweeney, founder and CEO of DSS, who will join the board of directors at Contegix. “The next logical step is providing additional capacity and geographic reach to continue to serve our clients’ increasingly complex and sophisticated workloads. Combining with Contegix expands our portfolio, bringing added value to our clients and new opportunity to our team members.”

“DSS has fostered true partnerships with its clients by becoming an extension of their organizations and delivering tremendous value,” said David Turner, CEO of Contegix. “DSS provides a breadth of offerings from hosting to 24/7 support tailored to client requirements. Its commitment to ‘white glove’ service is a mindset the company will continue to embrace as well as going beyond for its clients.”

“The managed hosting and application hosting market has seen a great deal of change over the past decade. There is a lot of room to meet the fast-changing demands of clients who want full-service support for their growing, evolving businesses,” said Strattam Capital Co-Founder and Managing Director Adrian Polak. “These two companies really complement one another. Together, their product and service offerings and increased geographic presence makes them an even more valued partner.”

Senior debt financing for the transaction was provided by Comerica, Inc. Salter McGowan Sylvia & Leonard served as DSS’s legal advisor. Seyfarth Shaw LLP served as Contegix’s legal advisor. Wilson Sonsini Goodrich & Rosati served as Strattam Capital’s legal advisor.