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OpSource Acquires Quadrix Solutions' Managed Services Business
Marks First Year Anniversary in Dramatic Fashion with 64 Customers, 68 Employees, Four Acquisitions and Operations in Four U.S. Metropolitan Markets
SANTA CLARA, Calif., -- May 27, 2003 -- OpSource, Inc., a next-generation IT infrastructure services company, announced it has acquired the managed services business of Quadrix Solutions, Inc., a systems integration and managed colocation services provider. This is the fourth acquisition completed in the past six months for OpSource. The transaction strengthens OpSource's presence in the Northeast and adds 16 customers including BeMusic, BMG and Excel Partners Ltd. Through a combination of organic growth and an aggressive acquisition strategy, OpSource has built an IT services organization with the scalability to support growing demand by Global 2000 companies for high-quality, laser-focused IT operations services.
"In a very difficult economic environment OpSource's three pronged customer acquisition strategy which combines organic and private label sales, with aggressive M&A activity has enabled them to post impressive first year results," commented Andy Schroepfer, president of Tier 1 Research. "Already a significant player following its first year, we expect OpSource to be a strong contender in the managed services space for years to come."
Seamless Transition from Quadrix to OpSource
Under the terms of the agreement and effective immediately, OpSource assumes full responsibility for servicing Quadrix customers. Members of the Quadrix technical operations staff including Thomas Palmieri, Quadrix CTO and a company founder, will be joining OpSource. Palmieri will be responsible for the OpSource technical team that will operate from Quadrix's former headquarters in Piscataway, New Jersey. Palmieri and his team will continue to deliver services to and support Quadrix's customers ensuring a transparent and seamless transition to OpSource.
"We are committed to being a leader in the IT operations services industry," said Treb Ryan, CEO and co-founder of OpSource. "With a reputation for quality services and a talented technical team, Quadrix complements our existing business and enhances our ability to scale our operations to meet growing demand for outsourced IT operations services."
"We bootstrapped ourselves for many years without any venture financing, and were one of the few high growth, profitable web hosting operations," noted Ben Reytblat, CEO and co-founder of Quadrix Solutions. "Many companies sought to acquire Quadrix over the years, but OpSource clearly stood out above the rest. Quadrix required an infusion of capital to take our company to the next level, and being acquired by OpSource provides the most benefit for our clients and employees. OpSource has a very experienced management team, strong capital resources and a remarkably similar corporate culture."
Quadrix Solutions, named one of the top privately held companies in New Jersey, has been recognized for the past two years by Deloitte & Touche as one of the fastest growing technology companies in North America, based upon its rapid growth and technical excellence. Quadrix has worked with a wide range of companies including AT&T, American Cyanamid, BeMusic, BMG, GetMusic, LEGO Mindstorms, Medscape, SmartMoney.com and Verizon. The company offers a wide range of IT operations services that closely mirror those offered by OpSource.
Acquisition Strategy Key to Delivering Value in Today's Challenging Economy
In today's economic environment, some of the best opportunities to create value for customers, employees and shareholders are through the consolidation of services assets. In addition to Quadrix Solutions, OpSource acquired Accelica in November 2002, EYT's Managed Services Group in February 2003 and Space4Rent, LLC in May 2003. Through carefully planned acquisitions and direct sales efforts, the company has grown to more than 64 customers, 68 employees, and operations in four U.S. metropolitan markets.
About Quadrix Solutions
Founded in 1996, Quadrix Solutions is a systems integrator and managed colocation services provider. The company designs and implements eBusiness solutions at its Solutions Centers and then supports them over the long-term at its Data Centers. Quadrix Solutions pioneered the use of Design For eXcellence (DFX) in powering the Internet economy, and defines "eXcellence" in terms of quality, time-to-market, reliability, scalability, security, operability, serviceability and maintainability. Quadrix Solutions' clients have included AT&T, American Cyanamid, BeMusic, BMG, GetMusic, LEGO Mindstorms, Medscape, SmartMoney.com and Verizon. Quadrix Solutions is affiliated with best-of-breed technology vendors such as ADIC, Cisco Systems, ClickCadence, Concorde, EMC, F5 Networks, Level 3 Communications, Netrics, Netscreen, RAID Power, Sun Microsystems, Tech Data, TestWare, and WatchGuard.
About OpSource
OpSource is a next-generation IT infrastructure services provider to Global 2000 companies. The company combines innovative technologies, proven processes and experienced people to create services that are flexible enough to suit a company's specific business needs and yet deliver real, predictable and measurable value to a company's business operations. OpSource is 100% focused on delivering IT infrastructure services so its customers can confidently enter into long-term relationships without fear that service quality will suffer due to tradeoffs with other lines of business or, worse, be left stranded as company priorities and interests change. The company is headquartered in Santa Clara, CA with additional operations in Los Angeles, New York City, Piscataway, NJ, and Chantilly, VA. For more information about OpSource, visit the company's web site at https://opsource.net.
