Long History: Founded in 1977 with headquarters in Atlanta, Atlantix provides IT Asset Disposition (ITAD) in addition to refurbishing IT data center hardware. As a result of the deal, the combined company will have roughly 400 employees. CXtec CEO Peter Belyea will lead the company in CXtec’s headquarters in Syracuse, NY, while Brian Glahn will remain President of Atlantix, overseeing the server, storage and ITAD expansion operations in Atlanta, GA. 

New Customers: CXtec was founded in 1978 by William G. Pomeroy, who first ran the business out of his home and led its nationwide expansion. While he has retired as CEO, he continues to serve on the board of directors and is a notable philanthropist in his local community. As CXtec has focused on building relationships with enterprise-class customers and Atlantix has focused on IT equipment dealers, a large benefit of the deal will come from the absence of overlap between client bases. In addition, this deal will help CXtec achieve greater scale in CXtec’s third-party maintenance (TPM) offerings.

Private Equity Interest: Private equity firms have taken ownership of both companies in the past two years. H.I.G. Capital completed a majority interest acquisition of CXtec and its sister company, TERECAI Corporation, in August 2016, while Millstein & Co. acquired Atlantix from Presidio in October 2015 in what was a year of particularly robust private equity investment in the channel; Millstein & Co. had acquired DLT Solutions in January 2015 (martinwolf advised DLT in the transaction), while Columbia Partners acquired MTM in June 2015 and Kelso acquired Sirius in September 2015.