QSGI Inc., the only provider of a full suite of information technology services to help corporations better manage IT assets, data center maintenance expenses, and ensure best practices for data security and regulatory compliance, today announced that it has entered into a Senior Security Purchase Agreement with Victory Park Capital, allowing QSGI to borrow up to $10 million to finance both working capital needs and future acquisitions. The new facility will replace the company’s previous $7.5 million asset based working capital facility. The additional borrowing capacity will be used for general working capital and to fund strategic acquisitions in order to support QSGI’s growth plans.

Marc Sherman, chairman and chief executive officer of QSGI, commented, “Over the past several quarters we have made significant progress repositioning the company into a full service, nationwide data center maintenance and IT services organization. These steps should help to ensure our sustained growth with a much greater mix of recurring, higher margin IT services. We believe that Victory Park Capital is an ideal partner, in that they understand our business and are committed to supporting our growth plans. This new facility will provide us much greater financial flexibility as we complete the previously announced acquisition and integration of Contemporary Computer Services (CCSI) and continue to improve our core operations and cash flow.”

The Shemano Group, Inc. acted as an advisor to the company with respect to the financing.