Cal Net Technology Group, a portfolio company of Boathouse Capital and Olympic Valley Capital, has acquired Velocity Network Solutions. Boathouse, in partnership with Olympic Valley, first invested in Cal Net in November 2013.
Cal Net Technology Group is a regional IT managed service provider serving small- and medium-sized businesses in Southern California. Cal Net targets enterprises with 10-1000 employees and provides IT support services both on-site and remotely. Cal Net’s primary product is on-site consulting of day-to-day activities along with additional products and services, including advanced services that can be performed remotely, specialized project consulting and resale of IT products. According to Boathouse, Cal Net is the 63rd largest managed service provider in the world and 5th in California. Cal Net was founded in 1995 and is based near Los Angeles in Chatsworth, CA (www.calnettech.com).
Velocity Network Solutions is a managed service provider serving small- and medium-sized businesses. Services include backup & disaster recovery, network security, cloud computing, remote access & support, CIO level IT consultation, and vendor management. The company was formed in 1999 by Thaddeus Gerber and is headquartered in North Hollywood, CA (www.velocityns.com).
The addition of Velocity to Cal Net extends its capabilities for IT services and provides additional technical depth. “With the addition of Velocity Network Solutions to the Cal Net family, we further our position as the premier provider of IT services in the Los Angeles and Orange County region. Cal Net boasts the deepest and most experienced technical bench of any SMB player in the market and continues to bring best-in-class service expertise to our current and future clients,” said Brian Kreiner, Cal Net’s Chief Executive Officer.
Boathouse Capital invests mezzanine debt and equity in lower middle market companies in partnership with management teams and private equity funds. Boathouse will consider investments from $5 million to $25 million in either mezzanine debt or equity capital in companies with EBITDAs of $1.5 million or greater. The firm manages over $350 million in two separate funds and is based in the Philadelphia suburb of Wayne, PA (www.boathousecapital.com).
Olympic Valley Capital invests in privately-held small and medium sized businesses that have EBITDAs from $1 million to $5 million. Sectors of interest include business services, healthcare services, distribution and logistics, aerospace and defense, light industrial, and consumer products. Olympic Valley Capital is led by its founder and managing partner Brian Kreiner and is based in San Francisco (www.olympicvalleycapital.com).
Monroe Capital provided an increase in a credit facility to Cal Net Technology Group to support the acquisition of Velocity Network Solutions. Monroe Capital provides senior and junior debt and equity co-investments to middle-market companies and has offices in Chicago, Atlanta, Boston, Charlotte, Dallas, Los Angeles, New York and San Francisco (www.monroecap.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-22-15