Venture-backed is merging with Seattle-based

Financial terms weren’t disclosed.

“The combined companies have the resources, expertise, and skilled personnel to capitalize on the very large market opportunity that exists for an on-premise and remotely managed alternative to hosted Exchange e-mail services,” said M3 Chief Executive Officer Tony Prince.

M3 was founded in 2002. Its services include assessing, designing, delivering and managing corporate e-mail and related infrastructure for companies that are migrating to a new platform or looking to outsource the support of their existing platforms.

Charlotte-based Frontier Capital invested $6.5 million in the company in 2007. At the time, the private-equity firm said its investment would support M3’s growth efforts, including product development and expansion of its services team. Frontier also was among investors that poured $2.7 million into the first last September.

The new venture will operate under the Azaelos name. The company will maintain network operations centers on the East and West coasts. Current Azaelos management will run the company.

Both companies provide Microsoft Exchange-related services.

Customers include Wendy’s. Extended Stay and Chiquita.

“The merger of Azaleos and M3 Technology Group is a seamless technology and business marriage for both companies that establishes us as the clear market leader in the managed Exchange market,” said Phil Van Etten, chief executive officer at Azaleos. “Together we have the size, scale, and bi-coastal operations to service organizations from the mid-market all the way up to the largest enterprises.”