FOR IMMEDIATE RELEASE
Contact:
Ashlie Lanning
alanning@919marketing.com
(919) 557-7890
Hosted
Solutions Acquired by Private Equity Firm for $140 Million
CEO Rich Lee Says Transaction Will
Accelerate National Growth and Expansion Plans
Raleigh, NC – 8 April 2008 – 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.”
-more-
Hosted Solutions was exclusively represented
by DH Capital, LLC, a leading investment banking partnership serving the data
center and managed hosting industries.
***
Photography and video
footage available. Please email alanning@919marketing.com or call 919-459-8158 for more details.
About Hosted Solutions:
Hosted Solutions’ high quality Data Center and Managed Hosting services
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. For more information please visit www.hostedsolutions.com.
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. More information about ABRY is
available at www.abry.com.