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 its portfolio company, BlueAlly Technology Solutions, LLC (BlueAlly), based in Cary, North Carolina. Source Capital acquired a controlling interest in BlueAlly in July 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 impressive IT services and solutions focused 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. 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.