Hostway Raises $110 Million
March 29th, 2010 By: Rich Miller
Web hosting provider Hostway Corporation has announced the closing of a $110 million debt and equity financing with a consortium of investors to accelerate the company’s growth plan. The transaction was led by Veronis Suhler Stevenson along with Fortress Capital, Regiment Capital and Phoenix Life. Specific terms of the deal were not disclosed.
Hostway is an established player in the web hosting sector. The company was founded in 1998 and operates 250,000 square feet of data center space to support more than 1.4 million Web sites and 600,000 customers worldwide. Hostway’s offerings include the full range of small business web hosting solutions, and a cloud hosting business launched last year.
“In the next stage of our history, in partnership with our new investors, we aim to accelerate the pace of becoming the leading provider in the fast-growing online services market,” said Lucas Roh, CEO and co-founder of Hostway Corporation.
“We are excited by the opportunity to partner with Hostway and invest in this vibrant and growing industry,” said George Cole, partner, Structured Capital Funds at Veronis Suhler Stevenson. “With a sound infrastructure in place and forecasted growth far exceeding projected GDP growth annually in the managed hosting, collocation and cloud computing segments over the next three years, Hostway is well positioned to capture further market share.”
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