News

CHARLOTTE, N.C. – Peak 10 Inc., a managed services company with world-class data centers, and Welsh, Carson, Anderson & Stowe (“Welsh Carson”), a leading private equity firm, have entered into a transaction in which Welsh Carson and Peak 10’s executive management will acquire a majority shareholder interest in Peak 10. Selling shareholders include majority owner Seaport Capital, a New York-based private equity firm and McCarthy Capital, an Omaha, Neb.-based private equity fund.

Peak 10’s existing management team, led by Co-Founder, President and CEO David Jones will continue to operate the business. David Jones indicated, “Our partnership with Welsh Carson enables Peak 10 to continue increasing the scale of our business to meet the high demand for data center infrastructure and related managed services. Our strategic focus remains intact but our resources now position us to more rapidly extend our geographic footprint, strengthen our team and further accelerate our managed services and cloud offerings.”

Since the company’s inception in 2000, Peak 10 has managed a path of steady and consistent growth achieved through expansion in the greenfield markets of Jacksonville, Fla.; Charlotte, N.C.; Tampa, Fla. and Raleigh, N.C., and through acquisitions of established data center companies in Louisville, Ky.; Nashville, Tenn.; Richmond, Va. and, most recently, Fort Lauderdale, Fla. In 2007 and early 2008, Peak 10 opened greenfield data centers in Atlanta, Ga. and Cincinnati, Ohio respectively. Over the last two years Peak 10 has completed construction of additional facilities in five of its markets to meet customer growth and demand.

“Through its organic growth as well as strategic acquisitions and greenfield activities in entering new markets, Peak 10’s management team has continually outpaced its competition. The company’s growth has been impressive and we are excited to add Peak 10 to our portfolio of business services companies,” said John Clark, general partner at Welsh Carson.

“We are extremely proud that Welsh Carson, one of the largest and most successful private equity firms in the United States, is investing in Peak 10 and our leadership team,” said David Jones. “Since founding the company, we have remained focused on becoming an industry leader and have consistently invested significant success-based capital into our existing facilities as well as strategic acquisitions. We continuously enhance and upgrade our technology solutions for our customers. More than ever, our management team remains committed to expanding into new metropolitan markets with attractive growth prospects and deepening services that provide scalable solutions to our customers.”

“Seaport Capital has enjoyed its 10-year partnership with Peak 10,” said Scott McCormack, partner at Seaport Capital. “Working with and supporting the Peak 10 management team’s vision to grow the business from two sites into a leading data center facilities and managed services provider as a super-regional force in ten markets has been a great experience and we wish the management team and company continued success in the future.”

The transaction is expected to close in early October. Signal Hill Capital Group LLC acted as exclusive financial adviser to Peak 10 in connection with the transaction. Womble Carlyle Sandridge & Rice, PLLC is serving as legal counsel to Peak 10, and Kirkland & Ellis LLP is serving as legal counsel to Welsh, Carson, Anderson & Stowe in relation to this transaction.

About Welsh, Carson, Anderson & Stowe
Welsh, Carson, Anderson & Stowe is one of the largest and most successful private equity investment firms in the United States. Since its founding in 1979, the Firm has organized 15 limited partnerships with total capital of $20 billion. Welsh Carson focuses its investment activity in two target industries: information/business services and healthcare. Welsh Carson is currently investing an equity fund, Welsh, Carson, Anderson & Stowe XI, L.P., and a dedicated subordinated debt fund, WCAS Capital Partners IV, L.P. Additional information is available online at www.welshcarson.com.

About Seaport Capital
Seaport Capital is a private equity firm focused on making investments in communications, business and information services, and media companies. With over $500 million of private equity under management and more than fifty years of cumulative investment experience, Seaport Capital investment professionals have an outstanding record of making growth and buyout investments in private companies using comprehensive industry knowledge, experience and creativity. The key to Seaport Capital's successful record has been and will continue to be a commitment to partnering with superior management and ensuring that their interests are aligned through ownership stakes and shared strategic vision. For more information visit www.seaportcapital.com.

About McCarthy Capital Corporation
Based in Omaha, NE with offices in Denver and Boston, McCarthy Capital is a private equity firm focused exclusively on middle market companies. McCarthy Capital manages $500 million in private equity assets and capital commitments. For more information about McCarthy Capital, please visit www.mccarthycapital.com.

About Peak 10 Inc.
Peak 10 is a managed services company with world-class data centers. It delivers scalable, economical and reliable solutions for hosting and managing complex information technology infrastructure. The company’s expert team embraces the industry's evolving technologies by adopting and tailoring solutions such as virtualization and cloud-based services as part of its robust managed services offering. Its strong customer focus, financial stability, geographic diversity and technical strength attracts market-leading companies such as LendingTree, Global Knowledge, Pergo, Healthways and Churchill Downs. Peak 10 is SAS70 Type II compliant and helps companies meet the requirements of various regulatory compliance acts such as Sarbanes-Oxley (SOX), HIPAA, PCI and Gramm-Leach-Bliley (GLBA). For more information on data center solutions from Peak 10, visit www.peak10.com.

TAMPA, FL – Veredus, a Tampa FL-headquartered Information Technology staffing company and privately-held firm, today announced that it will open its fifth national office in Richmond, VA to better serve its growing and diverse client base.  This is another step in an aggressive expansion plan that is targeting growth into 10 additional markets with the ultimate goal of being a $100 million firm.

“We are excited to make this commitment to Richmond, VA” said David Brown, Managing Director of Veredus. “Our clients have been asking that we serve this area on a more permanent basis, and we are proud to be able to do so,” he added. “It will also allow for growth internally at Veredus, offering our experienced professionals additional leadership opportunities.” 

The new Richmond office is opening on September 1, 2010 and will be led by Staffing Industry Veteran, Clay McDonald.  Commenting on the opening of the new office, McDonald said:  “I am very excited for this opportunity.  The Richmond area has developed into a strong region for financial services firms with significant technology needs.  I am very excited to be joining the community.”  The Veredus – Richmond office will be located at: 6802 Paragon Place, Richmond, VA  23230.

Veredus is based in Tampa, FL but also has offices in Maitland, FL, Atlanta, GA, and Raleigh, NC and manages all types of Information Technology staffing.  The average recruiter at Veredus has more than eight years experience. Veredus has been ranked as one of the Best Places to Work in each of the markets it serves.

Veredus Corporation provides highly skilled professionals for contract and permanent placement in the discipline of Information Technology. With the core values of professionalism, integrity and world-class customer service, Veredus is committed to providing the highest caliber of staffing solutions and maintaining long term relationships with both its client and candidate partners. Veredus Corporation can be reached at:  804-441-6123 in Richmond, (813) 936-7004 in Tampa, (407) 244-244-3641 in Orlando, (404) 846-9392 in Atlanta, or (919) 278-2987 in Raleigh. For more information, visit http://www.vereduscorp.com.

By EMILY C. DOOLEY | TIMES-DISPATCH STAFF WRITER
Published: August 28, 2010

Richmond, Va. -- Microsoft Corp. plans to invest $499 million in Mecklenburg County to create its latest generation of data centers.

Virginia beat out North Carolina and Texas for the data center, which will create 50 jobs.

Gov. Bob McDonnell said the data center near Boydton -- about 100 miles southwest of Richmond -- represents the largest economic development project in southern Virginia.

"Microsoft is a household name and securing this global project is a significant economic win for Virginia," the governor said in a prepared statement.

Monica Drake, from Microsoft's external marketing and digital communications division, confirmed the plan to build a data center.

The company refused to offer further details, such as a construction timeline, wages and its reason for selecting the spot at Boydton Industrial Park.

The park was previously on the short list when Apple and Google were scouting for facilities. Both went to North Carolina.

The Governor's Opportunity Fund approved a $2.1 million grant, and an additional $4.8 million was awarded by the Virginia Tobacco Indemnification and Community Revitalization Commission, which uses money from a national tobacco settlement to finance economic development projects in tobacco-producing areas. Training assistance will also be provided.

"The future for economic development in Mecklenburg County and Southside Virginia is much brighter," said Del. Thomas C. Wright Jr., R-Lunenburg, a member of the tobacco commission.

Data centers are a target industry that the Greater Richmond Partnership hopes to attract to the region.

But the Richmond area was never in the running for the Microsoft center partly because of a lack of access to tobacco funds, said Gregory H. Wingfield, president and CEO of the partnership, a regional economic development agency.

"We didn't really have the incentives to compete," he said. "We would love to have that here. It fits."

In June, the latest month available, Mecklenburg County's seasonally adjusted unemployment rate was 11.7 percent, compared with 7.1 percent statewide, according to the Virginia Employment Commission.

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Contact Emily C. Dooley at (804) 649-6016 or edooley@timesdispatch.com.

Morton Consulting, a Richmond-based technology consulting firm specializing in IT and project management, has made the 2010 Inc. 500|5000 list of the fastest-growing, privately-held companies in the United States.

Inc. magazine today ranked Morton Consulting NO. 419 on its fourth annual Inc. 5000, an exclusive ranking of the nation’s fastest-growing private companies. The list represents the most comprehensive look at the most important segment of the economy—America’s independent-minded entrepreneurs. Music website Pandora, convenience store chain 7-Eleven, Brooklyn Brewery, and Radio Flyer, maker of the iconic children’s red wagon, are among the prominent brands featured on this year’s list.

“The leaders of the companies on this year’s Inc. 5000 have figured out how to grow their businesses during the longest recession since the Great Depression,” said Inc. president Bob LaPointe. “The 2010 Inc. 5000 showcases a particularly hardy group of entrepreneurs.”

With over 27 million businesses registered in the United States, the Inc. 500|5000 list represents the top-tier businesses in America today. Morton Consulting ranks 33 in the IT Services category, $5.6 Million in revenue and 419 on the overall Inc. 500|5000 list. The Inc. 500|5000 list appears in the September edition of Inc. magazine.

“We are thrilled to receive such recognition, our hard work has definitely paid off,” says Mark Morton, president and owner of Morton Consulting. Over the last three years, Morton has increased revenues by
709%; during the last 2 years staff has increased by 33%; and during the last 6 months Morton headquarters has tripled in size.

The Inc. 500 list is a distinguished editorial award, a celebration of innovation, a network of entrepreneurial leaders, and an effective public relations showcase. The Inc. 500|5000 ranks companies by overall revenue growth over a three-year period. All 5,000 honoree companies are individually profiled on Inc.com.

About Morton Consulting
Since its founding in 2006, Morton Consulting has focused on putting exactly the right people in the right place. Morton Consulting provides solutions that make sense. Our core management team is a collection of professional, friendly and energetic people who honestly want to help clients.

Morton Consulting serves a broad range of industries. Our superior IT consultants meet business-critical needs by designing and integrating high quality applications and implementing sophisticated software systems. SharePoint, Program Management, and Process Improvement are our key offerings. We recruit only the highest-level experts and nurture those relationships in every way possible. The Morton Team consistently provides excellence with every project and it shows. There’s nothing better than working with good people.

By JOHN REID BLACKWELL | TIMES-DISPATCH STAFF WRITER August 20, 2010

Richmond, Va. -- Owners and executives of midsize companies in the Richmond area will get some help soon forecasting local economic conditions for firms their size.

The University of Richmond's Robins School of Business and the Virginia Council of CEOs have joined to develop a quarterly survey of local firms that will gather basic information on expectations for business conditions.

The survey asks business owners and executives in the Richmond metropolitan area about their sales, employment and capital spending plans for the next two fiscal quarters. Results will be combined into an index.

"It fills a void," said Scot McRoberts, executive director of the Virginia Council of CEOs. "Our members are CEOs of smallto midsized businesses, and most of the economic data I see is either too broad geographically or too broad as far as the size of the businesses."

The survey is targeted toward leaders of firms similar to the 125 members of the Virginia Council of CEOs, with annual revenue typically between $1 million and $15 million.

"A lot of the economic data that seems to dominate the news is focused on the largest corporations," McRoberts said. "What I think is helpful and useful for a [midsized] company in the Richmond area is some data to show what other companies in the same geography think is going to happen in the next two quarters."

The first survey was conducted in July. Results should be out this fall, looking ahead to economic expectations during the fourth quarter of 2010 and first quarter of 2011, McRoberts said.

Students and faculty at the Robins School of Business have interacted with members of the Virginia Council of CEOs, and a research project that would help local firms was a natural evolution of that relationship, said Richard Coughlan, the Robins School's senior associate dean.

Results are tabulated by Jeff Pollack, assistant professor of management at the Robins School, who developed the survey based on similar research conducted by the Business Roundtable, a national association of chief executive officers.

The Robins School and the Virginia Council of CEOs are looking for other companies with revenue of more than $1 million to participate in the quarterly surveys.

"Our hope is that by inviting others to participate, we will double and triple the number over time and come up with a great sample of the region's economic outlook," McRoberts said.

Business owners and executives interested in participating should contact McRoberts at smcroberts@vaceos.org.

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Contact John Reid Blackwell at (804) 775-8123 or jblackwell@timesdispatch.com.

By Peter Bacque | TIMES-DISPATCH STAFF WRITER
August 18, 2010

Richmond, Va. -- Virginia Commonwealth University will offer a new class this fall for business people interested in the market for sustainable enterprises.

"Many believe it is the biggest opportunity of our time," said VCU international marketing professor Van R. Wood.

The Certificate in Sustainability program will take place over 11 evening sessions from Sept. 8 to Nov. 17 at the VCU School of Business in Snead Hall.

"What makes it relevant is we're going to add another 2 billion people to the world's population by 2050," said architect and planner William R. Godfrey.

Godfrey, president of the Henrico County-based Environic Foundation International, will be one of the VCU program's leaders.

"We're going to have to become four to 10 times more efficient to provide those 9 billion people with the services and amenities we have now," Godfrey said. "We're going to have to innovate in every sector . . . to become that four to 10 times more efficient."

Sustainable development meets the present generation's needs without compromising the ability of future generations to meet theirs, Wood said.

Meeting the demands of sustainability will be a game-changer for those prepared for what's coming, he said.

VCU's town-and-gown sustainability program will explore how individuals, organizations and communities can innovate ideas, products and services; reduce expenditures through decreased waste and efficient use of materials; enhance their personal and business reputations; and avoid disasters such as BP's Gulf of Mexico oil spill.

The program, which will be limited to 50 participants, will cost $1,500 per person for registrations through Sept. 3, and increase to $2,500 after that.

Wood, Godfrey and Robert M. Clarkson, who is also with the Environic nonprofit, will coordinate the program.

SyCom Technologies wins prestigious Microsoft Partner award.

Microsoft announced at its Worldwide Partner Conference in Washington, DC that SyCom Technologies has been named the 2010 East Region SMS&P Technical Excellence Award winner.  The award recognizes a Partner with advanced Microsoft specialization that has demonstrated technical leadership and significant impact for customers by building Microsoft solutions with interoperability, integration and consistent technical architecture.  SyCom has earned this prestigious annual recognition by investing in training and developing its engineering talent and has distinguished themselves amongst thousands of Partners in the East Region (over a third of Microsoft’s US geography).

“The achievements by SyCom Technologies demonstrates their abilities to create and deliver innovative products and solutions to local customers,” said Jack Braman, vice president for Microsoft's Small and Mid-market Solutions and Partners (SMS&P) in the East region. “Microsoft is pleased to acknowledge and honor SyCom, and we recognize their strength in driving innovation and success for businesses in the region."

SyCom’s CEO, Tom Cricchi, accepted the award on behalf of all the dedicated, hard-working employees of SyCom.  “Our entire team is focused on creating positive ‘SyCom Experiences’ by providing outstanding and memorable service in everything we do.  Winning this prestigious award validates our approach and philosophy:  if you hire and train the best people, you will achieve the best business results.”

SyCom is a Richmond-based I.T. system integrator with core capabilities in Unified Communications, Networking, Data Center & Virtualization, Optimized Desktop, Windows Core Infrastructure and Operations Management. In addition, SyCom provides a wide range of Support Services, including help Desk and Monitoring . For more information, please contact SyCom Technologies at 804-262-7100 or info@sycomtech.com.

Stephanie R. Harmon
Director of Partner Solutions and Marketing
SyCom Technologies
sharmon@sycomtech.com
(C) 757-613-6068
(O) 804-474-5297
(F) 804-262-5157

(August 3, 2010, Ashland, VA:) The Dominion Resources GreenTech Incubator (DRGI), an initiative that was developed to successfully incubate a steady stream of seed stage, high technology growth companies commercializing innovative products & services in the alternative energy and other clean and green technologies, has accepted two new member companies in its Ashland facility in the Presidential II building, Marine Renewable Technologies and EnviroDock, which brings the total number of member companies to four. DRGI, which opened for business in January 2010, is a joint initiative of Hanover County, the Town of Ashland, the Virginia BioTechnology Research Park (VBRP), the Virginia Biosciences Development Center (VBDC) and Dominion Resources (NYSE: D), the program’s title sponsor.

Marine Renewable Technologies (MRT) is commercializing an advanced hydrokinetic turbine that can be used to generate power from the kinetic energy in moving water in rivers, tidal bodies and the deep ocean (e.g. the Gulf Stream). Tidal power is clean, predicable, reliable and invisible (completely submerged). Forty percent of the world’s population lives within 60 miles of a coastline. However, today’s hydrokinetic turbines suffer from high electricity costs and limitations on power output (1 MW maximum), as well as on minimum water depth and speed. MRT’s proprietary technology (patent pending) is designed to produce up to 10MW of power at or below wind energy costs, while overcoming the existing limitations on minimum water depth and speed.

“We are very excited about joining the Dominion Resources GreenTech Incubator,” said George “Kim” Chaffee, President of Marine Renewable Technologies. “The fact that Hanover County is the site of one of the first GreenTech Business Incubators on the East Coast is wonderful news for us start up companies. Having the expertise and services that an incubator gives us is a tremendous advantage and greatly increases our chances of success. We are very grateful to the folks at Hanover County, Dominion, the Virginia Biotech Incubator, as well as all the others who have made this possible. We believe our successes will help grow the area’s economy over the next decade.”

Envirodock’s mission is to provide simple and affordable heating, cooling and shore power services to the transportation industry as an alternative to idling. The system was developed to address new regulations in the trucking industry to reduce idling and the resulting air and noise pollution. EnviroDock’s technology has an additional benefit that will allow the truckers to increase fuel conservation by reducing their idling. Their stand-alone systems will be purchased and installed at truck stops, rest areas and distribution centers nationwide. Truckers can hook their vehicles to this HVAC and power supply system, cut their engines off, and enjoy high velocity fans with a dual ducting system for the supply and return of fresh air and circulation.

“I believe that the Dominion Resources GreenTech Incubator is an incredible resource to tap into, and I am very excited about all the benefits that it will provide our company,” said Ken Neal, President of EnviroDock. Thanks to the DRGI, the company has been able to put together an advisory board of business professionals from the transportation, marketing and engineering fields that are taking an active interest in the success of EnviroDock. Through the participation of the advisory board, we are gaining invaluable insights to all aspects of business that I think will expedite the growth of this company. In just the few short months that we have been here, we have already seen results.”

Modeled after the VBDC’s successful biosciences incubation program, DRGI will provide its member companies an affordable facility on the I-95 corridor, assistance with strategy and business planning, access to expertise within Dominion Resources, expert advice from business advisory boards, access to discounted professional services and introductions to sources of grant and investment capital. As the companies grow, they are expected to move to nearby locations in Hanover County, boosting the local economy.

For more information about DRGI, contact David R. Lohr at Dominion Resources GreenTech Incubator at (804) 368-8610 or email at DavidLohr@domgreentech.com.

# # #

About Dominion Resources: Dominion is one of the nation’s largest producers and transporters of energy, with a portfolio of more than 27,500 megawatts of generation, 1.1 trillion cubic feet equivalent of proved natural gas and oil reserves, 14,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines. Dominion operates the nation’s largest natural gas storage systems with 975 billion cubic feet of storage capacity and serves retail energy customers in 12 states. For more information about Dominion, visit the company’s Web site at www.dom.com.

About Hanover County/Ashland, VA: Hanover County is a dynamic community within the Greater Richmond, VA region located 90 minutes south of the nation’s capital in Washington, DC. Hanover’s central, mid-Atlantic location offers seasonable climates and one-day access to more than half of the U.S. population base. A business-friendly county with competitive tax rates, Hanover also has a strategic transportation infrastructure that includes I-95 and I-295, and convenient access to I-64. The Town of Ashland, located in central Hanover County, is a community of seven square miles and 6,000 plus residents that enjoy prosperity fueled by Randolph Macon College, a growing private sector and a strong, regional economy. Ashland is a town born of the railroad and is proud of its history. Safe streets, an efficient police department and a diverse array of retail and tourist activities add quality amenities for both the residents and businesses.

About the Virginia BioTechnology Research Park: The Virginia BioTechnology Research Park is currently home to a unique mix of over 60 public and private bioscience companies, research institutes affiliated with the VCU Medical Center, and major state and national medical laboratories. These companies are housed in nine buildings totaling more than 1.1 million square feet of space, representing an employee base that exceeds 2,000. The Park’s nationally recognized biosciences business incubation program, the Virginia Biosciences Development Center (VBDC), has successfully graduated more than 40 client companies, including three publicly traded firms. VBDC’s client companies and graduates have attracted more than $400 million in equity, grant and strategic capital. The Park’s Virginia Biosciences Commercialization Center has been created to assist international life sciences companies locating at the Park with commercialization activities through M&A or IPO, giving these Park’s tenants full-scale business assistance as they enter the US market. The Commercialization Center is working with 9 bioscience companies with technologies ranging from medical devices to diagnostics and therapeutics. www.vabiotech.com

Fahrenheit Emerging Media has been both the creators and the driving force behind the recently-launched Verizon FiOS Facebook page, handling everything from initial strategy to custom applications for the site. The Fahrenheit team drew on its varied backgrounds to offer Verizon a complete, all-in-one solution to developing and implementing its new online persona.

After creating a strategy for Verizon’s online efforts, the Fahrenheit team built the Facebook page, along with a custom sweepstakes application, with a focus on interactive design that better engages users of the social network. And through Verizon and its sponsorships, Fahrenheit has been able to develop landing pages and execute promotions for groups like the NFL and Disney.

Many companies are tentative about stepping into emerging media, but Fahrenheit has been able to create in-house programs for measuring success in the new arena. The group has designed and developed custom dashboards and tracking tools to gauge progress and ROI, easing the transition from traditional to new media.  

Fahrenheit Emerging Media has been able to translate its base in IT knowledge into strategies and tools that are helping a variety of companies succeed in social networking and beyond. Past and current projects include everything from custom applications on social networks to full strategy and design work for an e-book client.

Fahrenheit also pulls from the collective experiences of its employees to keep its clients ahead of the curve in emerging trends like online gaming and application design for various platforms. An ongoing usability study being run by the group will help a major client streamline productivity – the custom program Fahrenheit will develop as a result of the study will greatly improve customer service response time.

To find out more about the people at projects at Fahrenheit Emerging Media, check out www.fahrenheittechnology.com.

The Board of Governors of the Federal Reserve System has appointed the chairman and deputy chairman of the Board of Directors for the Federal Reserve Bank of Richmond for 2011.

Margaret E. McDermid, senior vice president and chief information officer of Dominion Resources Inc., of Richmond, was appointed as chairman for 2011. Ms. McDermid, who now serves as deputy chairman, has served as a Class C director since 2007.

Linda D. Rabbitt, chairman and chief executive officer of Rand Construction Corp., of Washington, D.C., was appointed deputy chairman for 2011. She has served as a Class C director since 2009.

Each Federal Reserve Bank has a nine-member board of directors. Three Class A and three Class B directors are elected to three-year terms by the stockholding member banks, and three Class C directors are appointed to three-year terms by the Board of Governors of the Federal Reserve System. Class A directors represent the stockholding member banks in each Federal Reserve District. Class B and Class C directors represent the public and are chosen with due consideration to the interests of agriculture, commerce, industry, services, labor and consumers. Only Class C directors can become chairman or deputy chairman.

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The Federal Reserve Bank of Richmond is one of 12 District Reserve Banks that together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Richmond Fed serves the Fifth Federal Reserve District, which encompasses the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia.