Horizon Buys Managed Services Firm

Horizon Data Center Solutions of Dallas has acquired Mareechi, an application service provider (ASP) with more than 100 clients. Terms of the deal were not disclosed, but Horizon said the combined businesses have an estimated 2009 revenue in excess of $20 million. Horizon, which already has more than 50,000 square feet of data center space in the Dallas market, said it also is planning expand one of its facilities during the third quarter, and is developing plans to expand with new data centers in Houston and on each coast within the next 12 months.

Horizon CEO Lance Smith said the company had planned to build a managed services division as part of its operations, but rapid growth led the company to look for an acquisition that would allow it to expand into the managed services area more quickly.

“Our customers began asking us for more services that would save them money,” said Smith. “We had two options: build it or acquire it. We felt the most prudent strategy would be to find a company with a proven track record and existing customer base, acquire it, and provide benefits to both sides of the house. With Mareechi, we found our opportunity.”

Mareechi clients include major Dallas businesses like Hunt Capital Group and Pizza Hut Park, while Horizon’s data center customer list includes Dallas-based Children’s Hospital and the Army & Air Force Exchange Service, now have the option to expand their services with Horizon into the hosting and application management areas, which may generate significant cost savings on IT overhead.

Lance Black, the founder and CEO of Mareechi, will remain with the company as Executive Vice President of Operations. “With the strength of Horizon, we can continue to build a solid, profitable managed services company and keep our focus on being high touch,” said Black. “We share the same customer service philosophy as Horizon, which has allowed us to grow exponentially year-on-year. With this acquisition, we gain the strength of a parent company that can help us expand on our annual 25 percent growth rates. We anticipate doubling this new division in size and revenues within a year.”

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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