Internap Acquires Cloud Hoster Voxel

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Internap Network Services has acquired hosting provider Voxel Holdings in a deal that will boost the company’s cloud computing offerings and expand its base of small business customers. The all-cash transaction, which closed Dec. 30, is valued at $30 million, with an additional $5 million in sweeteners tied to the delivery of specific objectives during the next two years.

Voxel is backed by Seaport Capital, which invested $5.5 million in the company earlier this year. Voxel is based in New York and offers hosting services atop an automation platform called VoxSTRUCTURE. Its services include on-demand physical and virtual cloud servers, a global content delivery network (CDN), and a full suite of managed services.  The company hass more than 1,000 customers and 50 employees.

Internap said Voxel’s automation platform will enable it to offer additional self-service options for customers, a key capability as companies seek to accelerate their deployment of IT infrastructure. Voxel’s dedicated hosting offering features robust online interface and comprehensive API that enables customers to provision services in minutes. It also allows users to seamlessly integrate physical servers and cloud instances in the same environment.

Internap said Voxel also gives Internap improved access to early- to mid-stage  customers seeking dedicated hosting services, a high-growth market.

“This acquisition of Voxel increases Internap’s market share and growth rate, accelerates our product roadmap and creates an unmatched competitive position as an IT Infrastructure services provider,” said Eric Cooney , president and chief executive officer of Internap. ”As IT Infrastructure outsourcing advances, enterprises increasingly seek service providers to support myriad applications and workloads throughout their entire IT lifecycle.”

The Voxel acquisition also expands Internap’s infrastructure. Voxel has  deployed infrastructure across three continents, leasing space in eight Equinix data centers around the globe. In its release announcing the deal, Internap mentioned that it would add Voxel locations in Amsterdam and Singapore.

“We are excited to be joining Internap, a company that shares our commitment to developing innovative IT Infrastructure solutions to drive the next generation of Internet and cloud applications,” said Raul Martynek , president and chief executive officer of Voxel. “The combination of Internap’s broad market presence and robust, high-performance IT Infrastructure platform with our expertise in automated hosting and cloud services will deliver a powerful option for a broad range of enterprise customers.”

Investment banking firm DH Capital served as financial advisor for Voxel.

About the Author

Rich Miller is the founder and editor-in-chief 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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