Investor group buys 365 Data Centers, eyes other targets

April 25, 2017
An investor group led by Chirisa Investments and including Lumerity Capital LLC and Longboat Advisors LLC has acquired data center services company 365 Data Centers. The group, which has formed 365 Data Centers Holdings, LLC, says it will investigate investments in other colocation and managed services companies. Terms of the deal were not disclosed.

An investor group led by Chirisa Investments and including Lumerity Capital LLC and Longboat Advisors LLC has acquired data center services company 365 Data Centers. The group, which has formed 365 Data Centers Holdings, LLC, says it will investigate investments in other colocation and managed services companies. Terms of the deal were not disclosed.

365 Data Centers operates facilities in Buffalo, Chicago, Detroit, Indianapolis, Nashville, Philadelphia, New York, and Tampa. In aggregate, the facilities serve carrier, content, and cloud-centric customers, including 25 major carrier customers as well as cable operators and other content providers (see, for example, "365 Data Centers, TeliaSonera International Carrier partner for U.S. 100-Gbps data center connectivity"). The Nashville and Tampa facilities host their regions' internet exchanges, the Buffalo facility serves as a dominant carrier gateway to Canada, and the Tampa facility is the primary carrier hotel in its area, the new owners assert.

Chirisa Investments head Colm Piercy, the former CEO of international connectivity and colocation provider Viatel and current chairman of Dublin-based wholesale data center provider Dataplex, assumes the role of chairman of 365 Data Center Holdings. Bob DeSantis, formerly co-founder and managing partner of Xand as well as founder of Longboat Advisors, is the company's new CEO.

"This initial acquisition provides us with a proven carrier neutral platform in predominantly edge markets that can realize internal growth from added content provider and enterprise market share and be enhanced by additional data center and managed services investments," DeSantis stated. "We intend to grow the company for our customers, employees, and investors by significantly increasing our sales team, investing in new product offerings, and broadening our target market to leverage our exceptional carrier, content, and cloud centric ecosystem and the available space and power at each of the facilities.

"The transaction will be seamless to existing customers and vendors as Jason Kiser, who has had responsibility for the eight data center facilities and customer service center for over a decade, will continue as vice president, operations of the company, and Steve Weaver, who has spearheaded the company's carrier, content and cloud customer strategy, will stay on as vice president, sales and marketing," DeSantis continued. "Kalindi Bhatt, who has worked with me in senior roles in communications, power, and data center businesses, has been appointed Vice President, Finance & Controller to round out the senior management team."

The company's corporate office will move from Emeryville, CA to Fairfield County, CT. All other facilities and employees are expected to remain in place.

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