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TelStar Hosted Services buys TouchStar’s Hosted division

TelStar Hosted Services has purchased of the assets of TouchStar’s Hosted division with private equity funding from William & Gallagher and Grindstone Partners.

TelStar Hosted Services is a communications-as-a-service organisation providing on demand contact/call centre solutions to over 200 corporate clients.

Williams & Gallagher and Grindstone Partners acted as lead on the investment working with D Partners, a Washington DC based boutique management firm.

James (Jim) P. Dunn and Ralph Peluso, founding partners of D Partners, will serve as chief executive and chief financial officer/chief operating officer of TelStar respectively.

Dunn says: “SMBs are aggressively looking for inventive yet proven ways to acquire, retain, and service new customers. Our products bring the proven efficiency of call centre products to our clients via the web without the capital expenditure and excessive IT costs that have traditionally burdened such initiatives. We have the formula for continued success in our feature rich product offering, strong technical support organisation, and our solutions oriented sales efforts. Our partnership with Williams & Gallagher and Grindstone Partners provides TelStar Hosted Services with the growth capital and industry insights to continue to build stable communication-as-a-service offerings that meet the scalability and security demands of our industry leading clients.”

TelStar posted record sales in 2009 and doubled its available capacity earlier this year.

Chris Rieple, formerly of TouchStar, has joined the TelStar Hosted Services executive team as vice president of sales.

“We have built our business by exceeding our customer’s expectations,” says Rieple. “The additional financial resources and new executive leadership enable us to expedite our growth plans while continuing to provide an uncompromised client experience.”

Williams & Gallagher is a Washington DC based private investment firm focused on small to mid cap management buyouts.

Grindstone Partners is an Alexandria, Virginia based private investment and advisory firm focused on small to mid cap investments.

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