Private equity firm Littlejohn & Co. buys Hostway Corp. from for an undisclosed price.
Chicago-based Hostway provides hosted information technology services to more than 500,000 small and medium-sized businesses.
The deal marks an exit for investment firm Veronis Suhler Stevenson, which initially invested in Hostway in March 2010 through its second fund. The New York firm provided $100 million of financing in collaboration with other investors as a means of growing Hostway's network of datacenters across North America.
The deal was announced just days after the Greenwich, Conn-based firm purchased Newgistics Inc., an Austin, Texas-based provider of e-commerce services to retailers.
Cowen and Co. served as exclusive financial adviser to Littlejohn on the deal while DH Capital ran the sale process for Hostway.
Littlejohn invests in middle-market companies that are undergoing changes in growth, capital structure, strategy or operations. The firm is currently investing from Littlejohn Fund IV LP, which has more than $1.3 billion in committed capital. In August, the firm recapitalized Handy Hardware Wholesale Inc., a hardware distributor.
In May, Littlejohn invested in Gulf Coast Shipyard Group Inc., which manufactures marine vessels.