Managed security services provider Fusion Connect was acquired Wednesday by Morgan Stanley Private Credit as part of a recapitalization and debt reduction move, reported SC Media sister site MSSP Alert.

The overall business valuation for Fusion Connect, which focuses on traditional managed IT services across on-premises and cloud systems, was not disclosed, but the firm announced it raised $55 million in preferred equity and refinanced a $60 million credit facility.

The recapitalization will help fund the MSSP's long-term growth strategy while simultaneously reducing its debt by over 80%, Fusion Connect stated in a press release.

Key participants in the funding and recapitalization include Morgan Stanley Private Credit, Ellington Management Group, and Investcorp Credit Management, among others. Following receipt of required regulatory approvals, Morgan Stanley Private Credit, via affiliated or managed funds, will become Fusion Connect’s majority shareholder, the financial services firm disclosed.