Astadia Announces a Majority Investment by Spring Lake Equity Partners
Source: Business Wire
JACKSONVILLE, Fla.–(BUSINESS WIRE)–Astadia announces a majority investment by Spring Lake Equity Partners. Also participating in the financing is New Harbour Partners. This new round of funding will enable Astadia to add capacity and the sales and marketing firepower necessary to meet expanding market demand.
Astadia offers next-generation services to organizations that want to move, and upgrade, their legacy application systems to a cloud-based computing platform. Demand by clients to move these “mission critical” application software systems leveraging modernization platforms from Microsoft, Amazon, Oracle and Micro Focus is increasing at a rapid pace. Market demand is happening across all commercial segments, as well as in the Public Sector, at the Federal, State and Local levels.
The economics of Cloud computing offers organizations of all sizes an opportunity to reduce their annual operating costs by up to 80%, versus on-premise computer operations. Modern infrastructure gives enterprises the ability to dynamically scale up or scale down the computing resources needed to meet requirements at any given time, enabling greater control and agility. In addition, a Cloud platform offers its clients an environment for innovation, while enabling large-scale wireless device access, as a native Cloud service.
Astadia has successfully completed more than 200 Mainframe Modernization projects, specializing in mainframe-class computers from IBM and UNISYS. These traditional systems are very costly to operate and maintain, and lack the flexibility to respond to rapidly changing business conditions. In addition, finding technical staff to support and extend these mainframes is becoming more difficult, since new technical workers coming in to the work force have skills that are focused on Cloud platforms.
“Enterprises are under increasing pressure to migrate off of these costly, inflexible computing platforms, while at the same time, the IT staffs supporting these systems have retired or are nearing retirement,” said Scott G. Silk, Astadia Chairman and CEO. “The convergence of these two trends is creating a sense of urgency for clients and a great opportunity for Astadia, the market leader in this segment.”
“We’re very excited about the success that Astadia has demonstrated in moving Legacy systems to modern platforms,” said Carmen Scarpa, Managing Partner at Spring Lake Equity Partners. “Demand for Cloud computing has accelerated the migration of large mainframe applications to this new delivery platform, and we are excited to back this experienced team.”
Astadia was represented by counsel Choate Hall & Stewart LLP. Choate helped Astadia keep this fast-paced transaction on track, enabling the company to quickly close on the financing so it could pursue immediate commercial opportunities.