Datapipe Raises $176 Million for Expansion
May 10th, 2011 By: Rich Miller
Managed hosting provider Datapipe has lined up $176 million in combined equity and credit financing to support its next phase of growth, the company said today. Datapipe said it had received a “significant equity investment” from ABRY Partners, and had also secured a new Senior Secured Credit Facility from a syndicate of lenders led by TD Securities and including Brown Brothers Harriman, CapitalSource, Caterpillar Financial, CIT Group, GE Capital, ING and Raymond James Financial.
ABRY Partners has been an active investor in the colocation and manage hosting industries, having bought and sold CyrusOne and Hosted Solutions. ABRY currently has a controlling stake in Toronto-area provider Q9 Networks.
“We are very excited to be partnering with Datapipe as they embark on their next phase of growth,” said Brian St. Jean, Principal at ABRY Partners. “Datapipe possesses all the high quality characteristics we look for in businesses we invest in and we are delighted to have them as part of the ABRY portfolio.”
Continued Growth Ahead
” This funding allows us to continue to grow and expand our services and solutions to meet our customers’ global needs,” said Robb Allen, CEO of Datapipe. “Datapipe and our clients will benefit from the compelling combination of ABRY Partners’ deep expertise and the stability of TD Securities.”
DH Capital, LLC served as financial advisor to DataPipe on the transaction.
DataPipe is based in Jersey City, NJ, and provides managed services to enterprise companies, with many customers in the financial services and pharmaceutical industries. The company has more than 1,500 customers in six data centers and eight office locations in the United States, the United Kingdom, and China.