VSS Capital Partners Invests in Centroid

Partnership Positions High Growth Business Serving Oracle Ecosystem for Next Chapter of Growth

Represents VSS’s Fifth Investment in IT Services Sector

VSS Capital Partners (“VSS”), a private investment firm investing in the business services, healthcare, education and information industries, and Centroid Systems Inc. (“Centroid” or the” Company”), a provider of managed cloud-services and enterprise workload consulting services, today announced that VSS has completed a significant growth investment in the Company. Financial terms of the private transaction were not disclosed.

Headquartered in Troy, Michigan, Centroid is one of the few certified Oracle Cloud Service Providers (CSPs) in all of North America, where it has won 14 North American Partner of the Year awards from Oracle. Centroid provides Oracle enterprise workload consulting and managed services across all major public cloud providers, including Azure, Amazon, Google, IBM, and Oracle, as well as private cloud technology, and serves U.S. companies across different industries including technology, manufacturing, automotive, personal care and medical devices, among others. Core offerings include managed cloud services, consulting services and engineered solutions.

“Centroid is meeting the strong demand for digital transformation services from today’s fast-growing businesses that require significant Oracle expertise to accelerate and implement their cloud-based solutions and digital transformation,” said Trent Hickman, Managing Director of VSS. “Many of these projects that require comprehensive cloud support services generate recurring revenue and involve multi-year contracts that help ensure the migration to cloud, integration, managed services and remote computing needs of the Oracle ecosystem are managed effectively and seamlessly.”

The Oracle enterprise resource planning (ERP) services market is a highly fragmented, high growth and complex, where companies are increasingly seeking specialized expertise to successfully implement next-generation digital transformation strategies as cloud computing continues to evolve.

“We could not be more thrilled to partner with VSS at a time when a large number of businesses are expected to migrate their ERP systems to the public cloud in North America over the next five to 10 years,” said Scott Morrell, CEO and Managing Partner of Centroid.

Eric Reed, Managing Partner of Centroid added, “We believe this backlog creates a strong secular tailwind to drive demand for deep industry knowledge, experience and broad range of capabilities for years to come.”

Jim Brull, Managing Partner of Centroid commented, “Together with VSS, we have already identified several strategic acquisition opportunities to further strengthen our managed services, digital transformation, analytics and public cloud solution capabilities.”

“This transaction demonstrates our ability to structure flexible capital solutions that enable founder-owned companies like Centroid to pursue new growth opportunities, benefit from the additional operational, financial and IT industry resources that VSS brings to the table, plus strongly align investor and company management interests,” said Yash Kandoi, Principal at VSS.

Willkie Farr & Gallagher LLP provided legal advice to VSS in the transaction. American Discovery Capital LLC acted as financial advisor and Morgan, Lewis & Bockius LLP provided legal advice to Centroid in connection with the transaction. CIBC Innovation Banking provided senior debt financing to facilitate the transaction.

About VSS

VSS Capital Partners (“VSS”), a private investment firm, invests in the business services, healthcare, education and information industries. Headquartered in New York, VSS provides capital for growth financing, recapitalizations, strategic acquisitions, and buyouts to lower middle market companies and management teams with the goal of building companies organically as well as through focused add-on acquisition programs. VSS makes privately negotiated investments across the capital structure and invests in situations requiring control or non-control equity, mezzanine securities, and structured equity securities. VSS has over three decades of experience, made investments in 90 portfolio companies, with over 370 add-on acquisitions, and has managed nearly $3.5 billion in aggregate committed capital across 7 funds. For more information, please visit: www.vss.com.

About Centroid

Headquartered in Troy, Michigan, and founded in 1997 as an Oracle Consulting Services business, Centroid is today a provider of managed cloud services and enterprise workload consulting services across Oracle, Amazon, IBM, Microsoft, and Google cloud platforms. With additional U.S. locations in San Francisco, Los Angeles, Dallas, and New York, and a large office in Hyderabad, India for 24/7 support, the company employs roughly 140 people.

Centroid has achieved many key milestones, including premier Oracle Partner status and recognition as Oracle's North American Partner of the Year for Engineered Systems, Oracle Technology, and Infrastructure-as-a-Service over the past 5 years. For more information, please visit: https://www.centroid.com/.

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