SOURCE: Generational Equity

February 26, 2009 16:12 ET

Generational Equity Announces Sale of Carpathia Hosting to Spire Capital Partners

DALLAS, TX--(Marketwire - February 26, 2009) - Generational Equity, an advisor to privately held and family-owned businesses for mergers, acquisitions, and strategic growth initiatives, announced the sale of its client Carpathia Hosting Inc., a provider of enterprise application hosting, based in Ashburn, Va., to private equity investor Spire Capital Partners LP, of New York. The amount of the transaction was not disclosed.

Carpathia Hosting provides information technology application hosting solutions, including servers, firewall/load balancing, bandwidth, backup facilities collocation and remote monitoring. Founded in 2000, Spire Capital Partners is a private equity group with approximately $600 million in assets under management across a broad range of business services.

Founded in 2003, Carpathia Hosting retained Generational Equity to provide business valuation and exit planning services when its owners decided to pursue other business ventures. "Generational Equity helped us market the company and maximize on the potential wealth in our rapidly growing business," said Rick Smith, CEO of Carpathia Hosting. "Spire has excellent resources to continue expanding Carpathia and capitalize on our success."

Spire Capital Partners was interested in acquiring a company in this sector and was working with an established management team to acquire the company. "We are excited to have Carpathia as part of the Spire portfolio," said Sean C. White of Spire Capital Partners. "We are looking forward to continuing to aggressively grow the company."

"The deal between Carpathia and Spire Capital reflects Generational Equity's strong track record of providing valuable advice, securing competitive offers and closing deals on behalf of our clients," said Generational Equity President Ryan Binkley.

Generational Equity received interest from numerous parties, but recommended focusing on Spire. "We felt that Spire was well suited to acquire Carpathia because of the strong management team ready to take over," said Steve Heimstead, Generational Equity's lead managing director for the transaction. "Our team worked very hard to create a deal that would benefit everyone involved and ultimately we were very successful in doing this."

About Generational Equity

Generational Equity assists privately held and family-owned businesses in completing mergers, acquisitions, divestitures and strategic growth initiatives. Generational Equity has more than 300 professional advisors and affiliates nationwide and is headquartered in Dallas, with affiliate offices in New York, Chicago and Irvine, Calif. For more information, contact Generational Equity at (877) 213-1792 or info-us@Genequityco.com, or visit www.Genequityco.com.

About Carpathia Hosting Inc.

Carpathia Hosting, ranked one of the top 25 small technology firms in the Washington DC area by The Washington Business Journal, is a leading provider of enterprise application hosting services for government agencies and businesses that require 100% application availability. Employing dynamic technologies that remove hardware dependencies and improve efficiencies, Carpathia Hosting solutions strive to reduce operational costs while surpassing SLA requirements. As a datacenter neutral company, Carpathia Hosting is quickly becoming the hosting company of choice for companies that demand security, quality and high performance. Contact Carpathia Hosting at 1-888-200-9494 or visit www.carpathiahost.com for more information.

About Spire Capital Partners LP.

Founded in 2000, Spire Capital is an active and experienced private equity firm with an investment focus in companies within the business services, information services, media and communications sectors. Spire Capital leads buyout investments in its areas of expertise and believes its deep industry experience and network of relationships are invaluable in helping its portfolio companies to grow and succeed. Spire Capital currently has approximately $600 million in assets under management across two funds. For more information, visit www.spirecapital.com.

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