Source Capital, a private equity firm focused on lower middle-market companies, is pleased to announce the acquisition of Virtual Graffiti, Inc., (Virtual Graffiti) based in Irvine, California by another one of its portfolio companies, BlueAlly Technology Solutions, LLC (BlueAlly), based in Cary, North Carolina. Source Capital had acquired a controlling interest in BlueAlly in June 2020, and now intends to bring the two companies together to create a stronger offering of security products and services, open new sales channels for each company, and capture greater market share in the segments currently served by each company.
Tom Harbin, Managing Partner at Source Capital, stated, “BlueAlly and Virtual Graffiti have built and grown similar businesses but with different business models. The capabilities and cultures of the two organizations are highly compatible and the combined company will be well-positioned to accelerate growth and we look forward to supporting the strategies of this new player in the IT services sector.”
Vijay Tanamala, Founder and Executive Chairman of BlueAlly, added, “Through the combination of Virtual Graffiti’s unique security expertise and BlueAlly’s managed security services offering, new and existing customers will have access to best-in-class security solutions and services. The partnership with Virtual Graffiti ideally positions the combined business to best-serve the rapidly growing IT security industry.”
“Virtual Graffiti has built a differentiated IT solutions platform centered around security solutions,” said Hillel Sackstein, Founder and CEO of Virtual Graffiti. “For some time, we have wanted to add a managed security services offering to meet our customers’ needs and enable further growth. BlueAlly gives us immediate access to such an offering, along with the infrastructure to deliver these services on a larger scale.”
The transaction was facilitated by IT ExchangeNet (ITX), a global leader in smaller mid-market mergers and acquisitions focusing on IT Services businesses, MSSPs, MSPs, Microsoft, and Oracle channel partners.
About Virtual Graffiti, Inc.
Headquartered in Irvine, CA, Virtual Graffiti offers a vast portfolio of IT solutions focused on IT security, network, storage, and cloud. Through its differentiated marketing and sales approach, tech-enabled operations, and decades of specialized expertise, the company has built an impressive customer portfolio and reputation as a best-in-class security solution provider. To learn more about Virtual Graffiti, please visit: https://www.virtualgraffiti.com/
About BlueAlly Technology Solutions
Headquartered in Cary, NC, BlueAlly’s services span the entire technology life cycle from initial design and implementation to on-going managed security and infrastructure services. The company has established itself as an industry leader through its comprehensive offerings and deep technical-expertise. To learn more about BlueAlly, please visit: https://blueally.com/
About Source Capital, LLC
Source Capital, LLC is a private equity firm that invests in mature, lower middle-market companies across a range of industries. Source Capital’s investment strategy targets growing companies with greater than $2 million in EBITDA seeking a growth-oriented partner. Since its founding in 2002, Source Capital has made 23 equity platform investments, 41 add-on acquisitions and 30 debt investments. To learn more about Source Capital or to discuss a new equity or debt investment opportunity, please reach out to a member of our investment team.
Thomas van der Meulen
Kate Harbin Clammer