365 Data Centers has acquired Host.net, a data center services provider in two southeast Florida markets. The seller was Canadian private equity firm Novacap. No financial terms were disclosed. 365 Data Centers is owned by Chirisa Investments, Lumerity Capital LLC and Longboat Advisors LLC.
NORWALK, Conn., Sept. 27, 2017 /PRNewswire/ — 365 Data Centers, a leading provider of data center solutions for carrier, content, and cloud customers in eight strategic markets, announced today that it has acquired Broadband One LLC, d/b/a Host.net, a data center services provider in two southeast Florida markets.
The acquired facilities are in Boca Raton and Fort Lauderdale with approximately 62,000 square feet of floor space, 8,000 square feet of business continuity space, 4.5 MW of power, and 330 miles of fiber providing direct connectivity to the NAP of the Americas in Miami with under one millisecond of latency. In addition, the acquired business maintains more than 30 network PoPs on an owned nationwide transit network with 330 peering partners. When added to 365’s connectivity rich data center in Tampa, the Company now provides customers with the best edge data center options across the Sunshine State.
365’s footprint now covers ten markets with data centers in Boca Raton, Buffalo, Chicago, Detroit, Fort Lauderdale, Indianapolis, Nashville, Philadelphia, New York, and Tampa with a combined 195,000 square feet and 13 MW of power in place to serve customers. 365’s data centers are SSAE 16, SOC 2, PCI, HIPPA, ISAE 3402, and VISA compliant.
Bob DeSantis, Chief Executive Officer of 365 Data Centers, stated, “This follow-on acquisition, within just 6 months of purchasing the 365 Data Centers platform, provides significant financial scale for 365 and accelerates our strategy of broadening the Company’s customer and services base with more than 500 enterprise customers and a portfolio of scalable, retail and wholesale Network, IP blend, remote Disaster Recovery as a Service, virtual Cloud compute and storage, and Business Continuity product offerings.”
The objective of 365’s equity sponsors, Chirisa Holdings Inc., Lumerity Capital, and Longboat Advisors, at the time of the initial acquisition was to transform the predominantly colocation and connectivity rich platform business into a hybrid data center services provider that would appeal to enterprise customers in addition to its existing carrier, content, and cloud customer base.
DeSantis added, “With this transaction, we have re-positioned 365 Data Centers to provide customers in all ten of our markets with enhanced services including nationwide Metro Ethernet, long haul, and MPLS network/transport services, robust blended IP choices, direct, low latency connectivity to the NAP of the Americas, and cloud/colocation hybrid solutions through smart cloud architecture and a self-provisioning customer portal.” He further noted, “The high touch and customer focused Host.net network engineers, systems engineers, sales engineers, NOC, provisioning, sales, and operating personnel joining 365 will drive the Network, IP, DRaaS, and Cloud service offerings across all of 365’s markets and easily assimilate into the highly competent and professional 365 team.”
Jason Katz, Host.net’s CEO, will join 365 Data Centers as Vice President & Chief Administrative Officer reporting to DeSantis. In this role, he will continue as the Company’s point of contact for customers, vendors, and other relationship partners in the Boca Raton and Fort Lauderdale markets. He will also partner in the rollout of Network, IP, DRaaS, and Cloud service offerings and oversee the integration of all administrative functions.
Host.net was sold to 365 by Novacap, one of Canada’s leading private equity firms. Ted Mocarski, Senior Partner at Novacap, said, “It has been a real pleasure partnering with Jason and his team and we are happy to see the exciting possibilities that Host.net will have as part of 365 Data Centers. The eight additional markets provide geographic diversity that is of great strategic and operational value to existing Host.net customers.”
The Bank Street Group served as 365’s financing advisor and Greenberg Traurig as its legal counsel for this transaction. Crestline Specialty Lending provided the credit facility.
About 365 Data Centers
365 Data Centers is a leading provider of hybrid data center solutions in strategic edge markets. Our robust, carrier neutral ecosystem and secure, reliable edge Colocation, Network, IP, DRaaS, Cloud compute and storage, and Business Continuity services help organizations reduce costs, drive innovation and improve their customer experience. 365 Data Centers supports mission-critical application infrastructure by providing 100% uptime and adhering to industry standards such as HIPAA, PCI DSS, VISA, SSAE 16, SOC 2, and ISAE 3402. 365 Data Centers is based in Norwalk, Connecticut, and operates ten geographically diverse US data centers. Visit 365datacenters.com for more information.
Founded in 1981, Novacap is a leading Canadian private equity firm with $2.26 billion of assets under management. The Firm has raised over $2.6 billion in capital since its inception. Novacap’s unique investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous investee companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class companies. For more information, please visit www.novacap.ca.