Source Capital Acquires Virtual Graffiti, Inc.

martinwolf M&A Advisors (martinwolf) - Source Capital, a private equity firm focused on lower middle-market companies, is pleased to announce the acquisition of Virtual Graffiti, Inc., (Virtual Graffiti) based in Irvine, California, by another one of its portfolio companies, BlueAlly Technology Solutions, LLC (BlueAlly), based in Cary, North Carolina.

The transaction was facilitated by martinwolf's ITX division, a global leader in smaller mid-market mergers and acquisitions focusing on IT Services businesses, MSSPs, MSPs, Microsoft, and Oracle channel partners.

"At the onset of our engagement with ITX, we made it clear that identifying the right long-term partner for Virtual Grafitti was more important than speed. ITX was very deliberate in the global buyers they brought into our process. And once we met Source Capital/BlueAlly, we knew the combination was ideal for our future growth," said Hillel Sackstein, Founder and CEO of Virtual Graffiti. 

Source Capital had acquired a controlling interest in BlueAlly in June 2020 and now intends to bring the two companies together to create a stronger offering of security products and services.

Tom Harbin, Managing Partner at Source Capital, stated, "BlueAlly and Virtual Graffiti have built and grown similar businesses but with different business models. The capabilities and cultures of the two organizations are highly compatible, and the combined company will be well-positioned to accelerate growth and we look forward to supporting the strategies of this new player in the IT services sector."

"Working with ITX was seamless. They identified Source Capital/BlueAlly as a logical buyer for Virtual Graffiti, and were disciplined in their process. We look forward to evaluating future ITX clients, and working with them again," said Ben Emmons, Managing Director of Source Capital. 

About Virtual Graffiti, Inc.
Headquartered in Irvine, CA, Virtual Graffiti offers a vast portfolio of IT solutions focused on IT security, network, storage, and cloud. Through its differentiated marketing and sales approach, tech-enabled operations, and decades of specialized expertise, the company has built an impressive customer portfolio and reputation as a best-in-class security solution provider. To learn more about Virtual Graffiti, please visit:

About Source Capital, LLC
Source Capital, LLC is a private equity firm that invests in mature, lower middle-market companies across a range of industries. Source Capital's investment strategy targets growing companies with greater than $2 million in EBITDA seeking a growth-oriented partner. Since its founding in 2002, Source Capital has made 23 equity platform investments, 41 add-on acquisitions and 30 debt investments. To learn more about Source Capital visit:

About martinwolf

Headquartered in Scottsdale, Arizona with an office in New York, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, and Software space. Since 1997, its team has completed more than 180 transactions in over 20 countries, and sold eight divisions of Fortune 500 companies. For more information:

Source: martinwolf M&A Advisors