TORONTO – January 8, 2019 – Carbon60 Networks Inc. today announced an investment from M/C Partners, a leading communications and IT services-focused private equity firm based in Boston, MA. Simultaneously, M/C Partners is acquiring Vancouver, BC-based Gossamer Threads Inc. (GT.net), a managed cloud services company, and merging it with Carbon60 to create a leading platform in the Canadian market. The combined company will operate under the name Carbon60 Networks.
In addition to providing liquidity for selling shareholders, M/C Partners is investing capital to support organic growth and strategic acquisitions.
“M/C has a long history investing in managed hosting and IT services businesses globally and their knowledge of our industry will be a tremendous asset to the company,” said Carbon60 CEO John Witte, who was previously an executive at a prior M/C portfolio company, Fusepoint before it was sold to Savvis in 2010. “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.”
Gossamer Threads was founded in 1996 and like Carbon60, has developed into a well-regarded 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 on 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.
“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.”
Current Carbon60 CEO John Witte will continue to lead the company. John is also an investor and Board Member. 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.
Blaney McMurtry LLP served as the legal adviser for Carbon60 Networks and Ian Muirhead served as the legal adviser for Gossamer Threads. Choate, Hall & Stewart LLP and Norton Rose Fulbright LLP served as legal advisers for M/C Partners.