GI Partners Leads Buyout of SoftLayer
Private equity firm GI Partners has backed a management-led buyout of growing IT infrastructure specialist SoftLayer Technologies, the companies said today. Financial terms were not disclosed. The transaction continues the strong mergers and acquisition activity in the data center and hosting sector in 2010.
The deal also deepens the influence of GI Partners in the data center sector, where it already owns The Planet and Telx and recently gained an minority equity interest in ViaWest. SoftLayer’s executive team will continue to operate and manage the company.
“SoftLayer has taken a visionary model and created a company for the future of hosting,” said Rick Magnuson, Executive Managing Director of GI Partners. “We are excited to bring additional resources and experience to help SoftLayer leverage its strategic position in the expanding global data center services market.”
SoftLayer had $60 million in revenue in the first six months of 2010, and expects to top $125 million for the full year. The company just moved into a new headquarters facility in Dallas, which will include three new data centers. SoftLayer also deployed new network points of presence in seven additional cities. SoftLayer has 6,000 customers and more than 30,000 servers under management.
“I’m extremely proud of how much SoftLayer has grown and accomplished in its history,” said Lance Crosby, Chief Executive Officer of SoftLayer. “GI Partners’ investment and partnership enables us to take our unparalleled approach to the next stage. It’s gratifying that a firm with GI Partners’ insight and success sees such value in SoftLayer’s past growth and future opportunities.”
DH Capital served as exclusive financial advisor to SoftLayer in connection with the transaction.