SevenSpace, Nuclio to Merge
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Managed service providers (MSP) SevenSpace Inc. of Chantilly, Va., and Nuclio Corp. of Oakbrook Terrace, Ill., are merging to create SevenSpace/Nuclio Corp. The new company will provide enterprise organizations with a management and monitoring service for complex applications and infrastructure.
SevenSpace/Nuclio will receive a substantial, but undisclosed, cash investment from Forsythe Technology, one of the largest technology infrastructure services companies in the United States and Nuclio's former parent company. SevenSpace's current investors have also reaffirmed their commitment to the combined company with an additional investment.
In addition to its investment, Forsythe Technology will enter into a co-marketing agreement with SevenSpace/Nuclio, establishing a distribution channel with over 2,500 customers and 100 sales representatives trained and compensated to sell SevenSpace/Nuclio services.
"The MSP market is undergoing a consolidation process where a handful of companies will emerge as the leaders in the space," said Corey Ferengul, senior program director with the Meta Group. "Enterprise customers with mission-critical operations should look to established companies -- at those that are the consolidators -- as the likely winners in the space and view them as first options when seeking services for managing infrastructure and applications."
"This merger of two market leaders creates the definitive go-to source for enterprise application and infrastructure management services," said Peter Weber, president and chief executive officer of SevenSpace/Nuclio. "Combined, we offer the most comprehensive suite of management services, that addresses the intense demands of today's global enterprises. This merger strengthens our ability to deliver long-term value to our marquee list of customers."
The new company's services utilize an application and infrastructure management platform that combines the capabilities of the MicroMuse NetCool suite of tools for application management, the HP OpenView suite of tools for network mapping and monitoring and the power of SevenSpace/Nuclio proprietary tools for inventory management and reporting.
SevenSpace/Nuclio will be the largest enterprise MSP, with more than 140 enterprise customers including many Global 2000 companies like CVS/pharmacy, Xerox and GATX. The company has an established network of over 25 partnerships and relationships with companies such as Exodus, EMC, XO, Hewlett-Packard, KPMG Consulting, Forsythe Technology and others.
"As an enterprise customer, we see the value an MSP can offer to our IT department. Although we've been a Nuclio customer for over a year, we are familiar with SevenSpace's services and we see the benefit the combined services will bring us," said Vinny Minchillo, vice president Retail Systems of CVS/pharmacy. "The expanded suite of services will provide us with an opportunity to leverage the strengths of SevenSpace/Nuclio and continue to maximize our IT investment."
Under the merger plan, SevenSpace/Nuclio will appoint three Forsythe Technology executives, Richard A. Forsythe, chairman and president, Eva T. Losacco, senior vice president, and Albert L. Weiss, senior vice president and chief financial officer, to its eight member board.
The management team of the combined company will be led by Peter Weber, former president and chief executive officer of SevenSpace. Tom Crowley, Nuclio's former chief operating officer, will lead the integration of the two companies. SevenSpace/Nuclio will be headquartered in Chantilly and will maintain offices and operations in Oakbrook Terrace and Irvine, CA.