August 6, 2020 – Netrix, LLC today announced that an affiliate of OceanSound Partners, LP has recapitalized the company. OceanSound is a growth-focused, middle-market private equity firm investing in technology and technology-enabled services companies operating in enterprise, government, and industrial end markets. Terms of the transaction were not disclosed.
Netrix is a leading provider of cloud infrastructure, collaboration, data, and development services and solutions to small and midsize enterprise customers. Through an offering spanning professional and managed services, as well as the resale of third-party hardware and software, Netrix designs, implements, and supports leading edge, mission-critical information technology solutions.
“Since its founding in 1989, Netrix has had a singular focus – to enable and support scalable, secure, and efficient growth and operations for our clients,”said Rob Dang, the CEO of Netrix. “The current environment has significantly accelerated existing long-term trends related to cloud transformation, remote collaboration, and the rise of managed services. We felt that now was the time to find a partner who could support Netrix as we continue to expand our offerings, invest in key partner relationships, and help us turbocharge our acquisition strategy with capital and strategic guidance.”
Dang continued, “OceanSound’s understanding of our core markets and value proposition has allowed us to quickly align on the key priorities for Netrix’s next phase of growth and the continued professional development of the Netrix organization. We could not have come to this point without the dedication and hard work of our employees worldwide and the support of our clients and key strategic partners.”
Netrix’s existing management team has retained a significant ownership interest in the Company and will continue in leadership roles with Netrix going forward.
“At OceanSound we invest in businesses buoyed by strong secular tailwinds – Netrix is riding the wave of two important trends: the complete outsourcing of IT management by small and midsized enterprises to managed service providers and the transition of enterprise communications and collaboration solutions from on premises to the cloud. These trends, along with Netrix’s differentiated offerings, subject matter expertise, and customer intimacy, are driving significant organic growth. Rob Dang, his partners, and all the talented employees of Netrix have a track record of delivering successful outcomes for their clients, and we are extremely excited to embark on the next phase of Netrix’s evolution together. We anticipate making significant investments in the Company to drive incremental differentiation and growth,”said Ted Coons, Partner and Co-Founder at OceanSound.
“Our team at OceanSound has spent significant time evaluating the MSP landscape. In our view, the most effective strategy to drive differentiation, retention, and growth is to provide mission-critical services and solutions, utilizing both proprietary IP and leading third-party tools. Netrix checks those boxes. We are thrilled to partner with the entire team at Netrix to support continued growth, both organically and through strategic acquisitions,”said David Stein, Principal at OceanSound.
OceanSound Partners and Co-Founders, Joe Benavides and Jeff Kelly, emphasized that “Netrix exhibits the key characteristics that OceanSound looks for in a business – durable growth drivers, mission-critical offerings, and multiple avenues for value creation. Netrix is an excellent addition to the OceanSound portfolio and we are enthusiastic about the synergies the Company will create across our portfolio of government, enterprise, and industrial technology companies.”
Raymond James & Associates, Inc. served as financial advisor to Netrix in this transaction. Katten Muchin Rosenman LLP served as legal counsel to Netrix. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to OceanSound.