Wayne, PA - August 7, 2018 - Boathouse Capital is pleased to announce Cal Net Technology Group's merger with NexusTek, a leading IT services firm headquartered in Colorado. The combination creates a super-regional managed IT services firm in the western-half of the U.S.
Boathouse Capital will be exiting the investment after five years of stewardship. Over the course of their investment, Cal Net became a leading Southern California-based managed services provider through a combination of organic growth and the acquisitions of inhouseIT, Alpha Actual and Velocity Network Solutions.
"We are very excited to partner with the NexusTek team," said James Hwang, Chief Executive Officer of Cal Net. "The IT Services market is going through a critical phase of market consolidation and technological innovation. Together with NexusTek, we will have the resources and market presence to become a leading managed services provider in the Western-half of the U.S." Mr. Hwang will join NexusTek as Chief Operating Officer and President.
"We want to thank the team at Cal Net for a successful exit," said Bill Dyer, General Partner of Boathouse Capital. "We believe that this combination with NexusTek is another important milestone in the Company's roadmap. We enjoyed working with the leadership team of Cal Net during our watch and look forward to its continued success."
Layer 7 Capital LLC acted as Cal Net's exclusive financial advisor for the transaction. The terms of the transaction were not disclosed.
About Cal Net
Cal Net Technology Group is the premier provider of outsourced IT, cloud, security services and Unified Communications in the Southern California market, servicing organizations with 10-2,000 employees. Through its implementation and support services, Cal Net Tech excels in tackling the complexities of partially and fully outsourced IT and voice systems implementation and support services with both onsite and remote delivery models.
Cal Net has also been recognized as a Dell Security Partner of the year for 2015, Southwest Region Partner of the Year by Microsoft three years in a row, including 2015, IT Service Partner of the Year by the Los Angeles Business Journal, has been named a top 50 Managed Services Provider in North America by the MSPMentor 501 List, is a CRN MSP Elite 150 list member and is a seven-time Inc. 5000 honoree.
About Layer 7 Capital
Layer 7 is a boutique investment bank focused on providing advisory services to companies within the Software-as-a-Service (B2B, B2C), Infrastructure-as-a-Service (Data Centers, Hosting, Cloud), Managed Services (Managed Applications, Managed Infrastructure, Managed Network Services, Managed Security, Outsourced IT), Internet-of-Things and Artificial Intelligence / Robotics verticals. Layer 7's advisory services include buyside and sellside M&A, strategic planning, valuation analysis and debt capital placement for sector companies and their current and potential investors.