Canadian private equity firm NOVACAP announced the acquisition of US-based Host.net, a network infrastructure services provider that focuses on colocation, cloud computing, virtualization and storage. The deal signifies continued engagement by private equity firms in the internet infrastructure space, NOVACAP’s entrance into the U.S. market, and it is the 100th transaction for DH Capital, which served as exclusive financial advisor to Host.net. Terms of the deal were not disclosed.
Host.net is based in South Florida, and has over 700 customers ranging from small to large multinationals. Some private equity backing will allow Host.net to continue its growth and expansion. "The transaction will allow Host.net to continue to lead the industry, to grow to the next stage by adding more data centers, and to expand their portfolio of services to remain the industry's benchmark," said Ted Mocarski , Senior Advisor at NOVACAP, which has $790 million in assets under management, and is one of Canada's leading private equity firms.
NOVACAP will leverage experience acquired in the Canadian market as it expands its investment strategy to the United States. "It is part of a plan to increase our presence in the United States, and this agreement shows that we are a serious player in the market," said Pascal Tremblay, President of NOVACAP Technologies. "Our expansion will benefit our portfolio of companies, and will help us find additional opportunities throughout North America and in international markets."
"We are delighted to be working with NOVACAP, whose insight and investment will definitely benefit Host.net's growth strategy,” said Jeffrey Davis, Co-Founder & Chief Executive Officer of Host.net, in the release. “Their experience in the industry will bring focus to the strategic steps needed in order to grow the company."
Host.net's management team will remain in place and will be supported by newly appointed board members. "With this new acquisition, NOVACAP wishes to show its confidence in Mr. Davis' team, '' said Tremblay.
Host.net was founded in 1996 and is headquartered in Boca Raton, FL. The company operates multiple enterprise-class data centers connected to an extensive fiber-optic backbone delivering Internet, MPLS and layer 2 communications using a wide array of last-mile options. It serves customers in most major metropolitan regions of North America as well as portions of Europe.