SOUTH BEND — Schurz Communications, which owns The South Bend Tribune, has acquired Michigan-based Online Tech, entering into the rapidly growing cloud computing market as it continues to evolve with the digital economy.
Todd Schurz, president and CEO of the company, said he was looking for a new market that aligned with the values and competencies of his family and company but also was in “an exciting and high growth area that we could build upon.”
“Our company is known for patient capital that assists growing companies realize their aspirations,” Schurz said. “Online Tech represents one of the most exciting opportunities in the cloud market today. The strong and proven management team has ambitious goals in this rapidly growing industry and we are excited to provide the support and managed IT services.”
Schurz Communications, headquartered in Mishawaka, historically invested in three markets — newspaper publishing, television and radio broadcasting, and cable television — but in late 2015 sold off its radio and television stations, including WSBT-TV. The company still owns several newspapers and cable companies across the country but, aiming to replace the cashflow from the broadcast assets, retained Moorgate Capital Partners to help with a growth and diversification strategy.
From about a dozen options, Moorgate identified cloud management services, an industry with revenues projected to surge from $60 billion in 2015 to $160 billion in the next five years, as Schurz’s best new market. The Schurz family and board of directors agreed. Moorgate introduced the company to Brad Cheedle and Tom Wilten of Cloudworthy, a startup the pair founded to pursue acquisitions of cloud providers. Cheedle will serve as chief executive officer of Online Tech, while Wilten will be chief financial officer.