BurstNET Technologies, a hosting and colocation provider based in Scranton, Pa., has arranged growth capital and will use the funding to build a larger data center and expand into new markets, the company said this week. The financing was put together by Harbor Ridge Capital, an M&A advisory group focused on lower middle market technology companies, and funded by an undisclosed institutional investor.
BurstNET currently has a primary data center at its Scranton headquarters, with additional points of presence in four locations globally. The company provides a variety of hosting solutions, including cloud computing, dedicated servers, virtual private servers (VPS), and colocation racks and cages.
The growth capital will be used to expand into new geographic markets which are in high demand, as well as expanding into a new 30,000 square foot data center facility that replace its headquarters. The company says it also plans to add more resources to customer service, and boost it software development efforts to better automate its front end and back end platforms.
"Having bootstrapped our business since inception and managing to see such strong growth, we are excited to have our first round of institutional capital to propel us forward," said Shawn Arcus, CEO of BurstNET stated. "Being properly capitalized gives us tremendous potential, along with a new, much larger, state of the art data center, which will allow us to serve larger complex hosting and colocation data center client opportunities."
Harbor Ridge Capital was the advisor for BurstNET on the transaction.
"It has been a pleasure advising Shawn Arcus and the team at BurstNET in evaluating and executing this transaction," said Cyrus Maghami, Managing Director of Harbor Ridge Capital. "Having guided the company in evaluating numerous investment options during the process, we are pleased with the deal and the organization that the company selected.”
"This is an exciting time in the internet infrastructure space, such as data centers and complex hosting, and we expect the amount of M&A activity in this space to grow in 2012,” said Arman Khalili, Operational Partner of Harbor Ridge Capital.