Private equity firm ABRY Partners has acquired Xand Corporation, a data center service provider based in Westchester County, New York, and plans to expand its infrastructure.
ABRY, an experienced investor in the data center market, said Xand is expected to benefit from growing demand. Data center requirements in the northeast have grown exponentially in the last five years, ABRY said, and are expected to continue at a rapid pace for several years. The new owner said it will dedicate "significant resources" to help Xand continue to grow and expand.
ABRY Partners has been an active investor in the colocation and manage hosting industries. ABRY currently owns a controlling stake in Toronto-area provider Q9 Networks and holds a significant equity stakes in Telx and DataPipe. It previously bought and sold CyrusOne and Hosted Solutions.
"We believe Xand's steady growth-to-date, along with its high quality facilities, services, and employees constitute a strong and scalable platform. We look forward to partnering with the team in growing Xand's footprint and market presence,." said Brian St. Jean of ABRY.
ABRY has hired several new executives to direct the next phase of Xand's growth. David Struwas has been named Chief Executive Officer and Robert J. DeSantis has been appointed Chief Financial Officer. The pair senior executives with more than 50 years of experience in building communications and technology companies. Lee Weinstein, the prior president and owner of Xand Corporation, will remain as a significant investor and serve on the company's Board of Directors.
"Businesses are challenged with handling the expense and complexity of in-house IT functions and infrastructure, and are looking to outsource these activities while reducing operating and capital costs," Struwas said. "The breadth of knowledge and experience of the Company's management team positions Xand for a growth strategy through both acquisitions and new builds, while maintaining industry best customer service facilities and superior technical support."
"With ABRY's financial support and industry experience and Xand's current operations as a platform, we are well positioned to make additional prudent investments to grow the business," said DeSantis. "As evidence of this, Xand has completed a recent large data center expansion bringing its total gross square footage to 90,000 (square feet) and is in the process of securing an additional 50,000 square feet of data center space."
Founded in 1990, Xand provides data center infrastructure, collocation, private cloud and business continuity services. Its data center is headquartered in Westchester County, NY, 30 miles north of New York City.