Blackstreet Capital Buys Cartesian Inc.
Jun 29, 2018
Chevy Chase, Maryland-based private equity firm, Blackstreet Capital recently acquired Cartesian Inc., through Cartesian Holdings Inc. for $3.83 million.
Blackstreet Capital focuses on control investments in corporate orphans and “storied” companies in transition with $25 to $150 million of revenue. To date, Blackstreet Capital has invested in over 30 companies with combined sales in excess of $1.5 billion and over 8,000 employees.
Headquartered in Overland Park, Cartesian Inc. has been in the red for a number of years. The consulting company provides services to technology and communications companies such as AT&T, HBO and Vodafone. In 2017, Cartesian posted a net loss of $6.2 million and employed 228 full-time employees. In 2016, the company posted a net loss of $13.9 million and employed 262 employees.
As part of the agreement with Blackstreet, Cartesian received a $1 million loan to cover its operations.
Blackstreet stated in its annual report, if Cartesian's business was not able to generate more cash, or if the company could not obtain additional financing, "we may be unable to fund our operations in the future."
With the approved of $3.83 million, Cartesian will continue to function as a privately held, wholly owned subsidiary of Blackstreet Capital Holdings LLC.