Agellus Capital, a recently launched Clayton-based private equity firm, has recapitalized a Seattle-based managed information technology and cybersecurity services company that it plans to expand.
Terms of Agellus' investment in the business, BlackPoint IT Services, weren't disclosed in a Tuesday press release announcing the deal.
BlackPoint's CEO James Watson and COO Lesleigh Watson will remain "significant owners" in the business, which provides managed services, cloud and software hosting, cybersecurity and consulting for small and mid-sized clients in the Pacific Northwest and Mountain West, according to the release.
“We are honored and excited to be partnering with James, Lesleigh and the BlackPoint team to continue building upon the company’s historical success,” Beau Thomas, managing partner at Agellus Capital, said in a statement. “The BlackPoint team has built an exceptional business that provides high quality solutions for clients and serves as a top place to work for employees.”
The company declined to disclose financial information related to BlackPoint, but Thomas said, “We hope to expand the business into additional geographies outside of the Pacific Northwest and Mountain West regions, including into the St. Louis area.”
Agellus Capital principal Jordan Prohaska said in a statement that the PE firm sees "significant opportunities for accelerating organic growth and further add-on acquisitions within the highly fragmented IT managed service provider market to expand the Company’s capabilities, geographies and talent."
James Watson said of Agellus Capital in a separate press release Thursday, "Their vision for the future aligns perfectly with our goals, and their transparent and efficient approach made them the ideal partner."
Cascadia Capital served as Agellus Capital's financial adviser and Fredrikson & Byron PA served as the private equity firm's legal counsel in the transaction. BlackPoint had Revenue Rocket as financial adviser and Helsell Fetterman as its legal counsel.
Agellus Capital, founded in March, plans to focus its investments on business-to-business services, “non-discretionary consumer” firms – such as plumbers and roofing companies – and the supply chain and infrastructure services markets. It aims to grow businesses in the United States and Canada, targeting platforms with between $2 million and $20 million in earnings before interest, taxes, depreciation and amortization.
The firm announced the closure of its inaugural fund this summer with total limited partner capital commitments of $400 million. Thomas told the Business Journal in July that Agellus expected to close one deal by the end of the year, if not more.
