Hosted Solutions, the East Coast’s premier data center and managed services provider, announced today that the company has been acquired by ABRY Partners, a Boston, Massachusetts private equity firm for $140 million.
The Hosted Solutions management team will continue to lead the company from the Raleigh, NC headquarters.
“This is an incredible milestone for our business,” says Rich Lee, Founder and CEO of Hosted Solutions. “Partnering with ABRY Partners provides us with the capital to fulfill our vision and accelerates our strategic growth plans.”
Investor ABRY Partners is one of the most experienced and successful media and business focused private equity investment firms in North America. Since 1989, ABRY has completed over $21 billion of transactions and other private equity and mezzanine investments, representing investments in more than 500 media and business properties.
“Over the last seven years, we’ve built a business that we’re incredibly proud of, growing in a controlled, strategic way to become a profitable company with five state-of-the-art data centers and a reputation for providing world class service,” says Lee. “Our employees and customers will see great benefit from this transaction as ABRY is a long-term partner that shares in our commitment to continue to grow the business and set the standard in the industry for service and innovation.”
“Hosted Solutions operates an incredibly strong business,” says C.J. Brucato, Partner of ABRY Partners. “They’ve built a leading company in a market with great growth prospects. What impressed us most about Hosted Solutions is the quality of operations, the focus on customers and the controlled manner in which they’ve grown. They’re a profitable business generating strong revenue today and we see tremendous potential for the business to continue to grow and expand.”
Industry analysts agree. "The managed hosting sector is an incredible standout in the midst of the current economic downturn, with strong growth and amazing prospects looking ahead,” says Dan Golding, Vice President and Research Director for Tier 1 Research, a firm that analyzes the technology marketplace. “Enterprises demand managed hosting providers that are technically adept, as well as capable of scaling with business requirements. Managed hosting providers that can pull off this combination are very much in the driver’s seat.”
Hosted Solutions was exclusively represented by DH Capital, LLC, a leading investment banking partnership serving the data center and managed hosting industries.
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About Hosted Solutions
Hosted Solutions’ high quality Data Center and Managed Hosting services (hostedsolutions.com) maintain and protect customers’ mission-critical IT systems and applications, enabling them to reduce operating costs, lower the risk of downtime, focus on core competencies, and achieve their top business objectives. The company operates SAS 70 Certified facilities in Boston MA, Charlotte NC, Raleigh NC, and Cary NC providing best-of-breed data center operations with hardened physical infrastructure, the highest level of security, and a complete managed services portfolio.
About ABRY Partners
Based in Boston, Massachusetts, ABRY Partners enjoys a position amongst the most experienced and successful media, communications and information sector-focused private equity investment firms in North America. Since 1989, ABRY has completed over $21 billion of transactions and other private equity and mezzanine investments, representing investments in more than 500 media, communications and information companies. Extensive and long-standing relationships with many different stakeholders and financing partners in its focus sectors allow ABRY to contribute significant value to operating partners and portfolio companies.