Beverly Hills, CA and Scranton, PA (PRWEB) - BurstNET Technologies, Inc™, the largest Web hosting and co-location provider in the Northeast Pennsylvania region, announced on Monday that it have acquired all of the equity in SoftLayer Technologies® from private trans-Atlantic investment firm GI Partners. The financing was put together by Harbor Ridge Capital, an M&A advisory group focused on middle market technology companies, and funded by an institutional investor. The financial terms of the deal were not disclosed.
SoftLayer, the innovative on-demand data center services provider, has built up a substantial base of 25,000 small, medium-size and large customers, in part by simplifying a customer's ability to go from virtualized servers to bare metal servers and back again. The charges are different, but SoftLayer handles the accounting, while reducing the transitions to clicking on a destination-server type at the start of the process.
AT&T, IBM and storage supplier EMC, owner of VMware, were among parties in talks to buy privately held company SoftLayer. The acquisition will give BurstNet a set of x86-based data centers and customers, including many small business customers. Among its major corporate customers are Citrix and the social networking and blogging platform Tumblr runs its entire infrastructure in Softlayer data centers. Other key sectors for the company include games companies or media agencies with large content and digital delivery requirements.
“SoftLayer has taken a visionary model and created a company for the future of hosting,” said Rick Magnuson, Executive Managing Director of GI Partners.
“I’m extremely proud of how much SoftLayer has grown and accomplished in its history” said Lance Crosby, CEO of SoftLayer.
“It has been a pleasure advising Shawn Arcus and the team at BurstNET in evaluating and executing this transaction,” said Cyrus Maghami, Managing Director of Harbor Ridge Capital. “Having guided the company in evaluating numerous investment options during the process, we are pleased with the deal and the organization that the company selected."
"The benefits for global players of acquisition rather than organic build includes not just local knowledge and relationships, but also time to market in gaining existing sites, and secured power and planning,” said Arman Khalili, Operational Partner of Harbor Ridge Capital.
As part of the transaction, Timothy Moore will join Softlayer’s existing management team as chief executive officer.
Moore has 10 years of experience in the data center industry. He previously held senior sales and management positions at ViaWest and Dataside.
While the company will continue to play in the short term contract, monthly billing space it doesn’t see itself as a commodity managed services player.
BurstNET currently has a primary data center at its Scranton headquarters, with additional points of presence in four locations globally. The company provides a variety of hosting solutions, including cloud computing, dedicated servers, virtual private servers (VPS), and colocation racks and cages.
“Having bootstrapped our business since inception and managing to see such strong growth, we are excited to have our first round of institutional capital to propel us forward,” said Shawn Arcus, CEO of BurstNET stated. “Being properly capitalized gives us tremendous potential, along with a new, much larger, state of the art data center, which will allow us to serve larger complex hosting and colocation data center client opportunities.”
BurstNET is actively involved in environmental initiatives including energy usage reduction and recycling. These initiatives have already reduced BurstNET's electricity consumption by an estimated 13%, with additional reduction currently being implemented. “We found it important to step up as a leader in our industry, and to do our part for the environment. We are proud to say that we are 100% powered by the wind, and one of the first data centers globally to do so. This purchase, along with other eco-friendly business practices, demonstrates our continued commitment to protecting the environment,” stated Mr. Marcus. "Softlayer's HHDs replacement by eco-friendly HDDs is number 1 priority".
"We do regularly utilize WD green hard disk drives. We have sold thousands upon thousands upon thousands of servers with these 5400 rpm drives and they have been found to perform just fine for almost everyone, and have had less of a failure rate than any other standard hard drive we have utilized in the past. If the customer has specific HDD needs, we are always able to offer a custom quoted solution for that. But take note that we are a budget hosting provider, and obviously not going to install enterprise level hard drives as standard. Our WD green drives have been more reliable to us than anything we have tested for basic drives in 20 years of business." said Mr. Marcus.
The company says it also plans to add more resources to customer service, and boost it software development efforts to better automate its front end and back end platforms.
BurstNET®, an INC500™ company, is a Web Hosting and Internet Solutions Provider servicing over 200,000 websites, maintained on over 3000 servers, for clients in over 150 countries worldwide. The company was founded in 1991, and entered the Web Hosting market in 1996, making it one of the oldest and most respected providers in the industry, as well as one of the longest remaining privately held companies in the sector. The BurstNET Network Operations Center (NOC), located in Scranton, Pennsylvania is a telco-grade facility with UPS power backup systems, diesel generator backup, security monitoring, and fully redundant temperature and environmental control. The data center is the largest Web Hosting and Co-location facility in the Northeast PA region. Call 1-877-BURSTNET for more info, or visit the company online at BurstNET
About SoftLayer Technologies
SoftLayer operates a global cloud infrastructure platform built for Internet scale. Spanning 13 data centers in the United States, Asia and Europe and a global footprint of network points of presence, SoftLayer's modular architecture provides unparalleled performance and control, with a full-featured API and sophisticated automation controlling a flexible unified platform that seamlessly spans physical and virtual devices, and a global network for secure, low-latency communications. With 100,000 devices under management, SoftLayer is the largest privately held Infrastructure-as-a-Service provider in the world with customers from Web startups to global enterprises. For more information, please visit softlayer.com.
About GI Partners
GI Partners, headquartered in Menlo Park, California, is a private equity firm established in 2001, managing approximately $4 billion of capital. The firm focuses on investments in asset-intensive businesses or portfolios of assets in a number of key sectors, including specialty healthcare, leisure, real estate, financial services, and technology. The firm has made several investments in the data center industry, most notably Digital Realty Trust in 2002, The Planet in 2006, The Telx Group in 2006, and ViaWest in 2010. For more information about GI Partners, please visit GI Partners - Investing in middle-market, asset-based businesses
About Harbor Ridge Capital
Harbor Ridge Capital, LLC is a boutique investment bank based in Los Angeles, CA, focused on advising middle market technology companies in various areas such as institutional capital raising, sell-side M&A, buy-side M&A as well as select strategic consulting. Verticals of focus include software, IT services, Internet infrastructure (cloud, hosting, data centers, and managed services) and related technology verticals. Harbor Ridge prides itself in guiding entrepreneurs through the vagaries, and complexities of an M&A transaction, while allowing the entrepreneur to focus on managing and growing their business. For more information on Harbor Ridge Capital LLC, visit Harbor Ridge Capital - M&A Advisory for Lower Middle Market Tech Companies