acquires

LANSING, Mich. – Liquid Web, LLC, the market leader in managed hosting services to SMBs and web professionals announced their acquisition of iThemes, a leader in WordPress plugins that include BackupBuddy, iThemes Security Pro, multiple site management Sync and iThemes Sales Accelerator.

Located in Oklahoma City, iThemes will continue to function as an independent unit within Liquid Web. All employees remain with iThemes and Cory Miller, founder, will remain as General Manager of iThemes while joining the Liquid Web leadership team.


Liquid Web partnered with iThemes in 2016 to bundle iThemes Sync Pro with Liquid Web’s Managed WordPress hosting offering. As part of this acquisition, the company will further integrate iThemes BackupBuddy, and iThemes Security into their current Managed WordPress hosting product as well as offer the product lines for sale to Liquid Web customers with unmanaged WordPress sites. Their recently launched iThemes Sales Accelerator, a data and e-commerce insights plugin, will be integrated into Liquid Web’s Managed WooCommerce hosting product launching in early January 2018.

“The acquisition of iThemes supports Liquid Web’s mission to empower web professionals worldwide and further demonstrates our commitment to being a leader in the WordPress and WooCommerce marketplace,” said Jim Geiger, CEO. “We believe that the combination of the Liquid Web and iThemes teams and products will be very beneficial to our Managed WordPress hosting customers and our newly launched Managed WooCommerce Hosting product, the industry’s first platform dedicated to WooCommerce Stores. I look forward to bringing in WordPress expert Cory Miller to help our company shape our Managed WordPress and Managed WooCommerce hosting strategies.”

“Liquid Web has launched the premier product in eCommerce hosting for WooCommerce sites, and we have a lot of plans for that product line,” said Cory Miller, Founder of iThemes. “While remaining an independent business unit, iThemes will grow with access to the leadership strategies of Liquid Web, capital and strong marketing. I’m excited about the Liquid Web roadmap and I believe together we will bring great solutions to the marketplace.”

To learn more about iThemes offerings visit: https://www.liquidweb.com/products/add-ons/ithemes/

About Liquid Web
Marking its 20th year anniversary, Liquid Web powers content, commerce, and potential for SMB entrepreneurs and the designers, developers and digital agencies who create for them. An industry leader in managed hosting, managed WordPress and cloud services, Liquid Web is known for its high-performance services and exceptional customer support. Liquid Web offers a broad portfolio designed so customers can choose a hosting solution that is hands-on or hands-off or a hybrid of the two. The company owns and manages its own core data centers, providing a diverse range of offerings spanning from bare metal servers and fully managed hosting to managed WordPress and continues to evolve its service offerings to meet the ever-changing needs of its web-reliant, professional customers. With over 32,000 customers spanning 150 countries, the company has assembled a world-class team, global data centers and an expert group of 24/7/365 solution engineers. As an industry leader in customer service*, the rapidly expanding company has been recognized among INC Magazine’s 5000 Fastest Growing Companies for ten years. Liquid Web is part of the Madison Dearborn Partners family of companies. Madison Dearborn Partners, LLC (“MDP”) is a leading private equity investment firm based in Chicago. For more information, please visit www.liquidweb.com, or read our blog posts at http://www.liquidweb.com/blog. Stay up to date with all Liquid Web events on Twitter and LinkedIn.

*2016 Net Promoter Score of 71

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ATLANTA, GA – Internap Corporation (NASDAQ:INAP), a provider of high-performance internet infrastructure including colocation, managed services and hosting, cloud and high-performance network services, today announced that it has entered into a definitive agreement to acquire SingleHop, LLC, a private company headquartered in Chicago, Illinois for $132 million in cash.

SingleHop is a recognized leader in the managed hosting and infrastructure as a service (IaaS) business segment, offering highly automated and on-demand IT infrastructure. This strategic combination allows INAP to immediately offer its customers advanced products and expertise. SingleHop’s enterprise and business customers will also benefit from INAP’s North American and global presence, providing a significantly more expansive integrated footprint.


“The INAP turnaround strategy includes restoring top-line organic revenue growth while leveraging smart tuck-in acquisitions to accelerate that growth,” stated Peter D. Aquino, President & CEO of INAP. “Today we announce significant progress on both fronts: We are reporting a positive outlook for 4Q 2017 revenue, which is up sequentially, and we are ahead of turnaround expectations. We are also pleased to announce the signing of an agreement to acquire SingleHop and welcome their customers and employees to the INAP family. We are very excited about partnering with Zak Boca and his experienced team to integrate their advanced platform into INAP. The combined impact of our sales and operational improvements, and the momentum of SingleHop’s success, is expected to be a catalyst for growth in 2018.”

Strategic Rational: INAP expects to gain significant speed to market by advancing its technical roadmap with this acquisition. The attributes of the combination include:

Robust Technology –
SingleHop’s advanced automated systems will immediately enhance INAP’s overall capabilities, improving existing customers’ experience. This acquisition will enable INAP to launch an integrated delivery system that will be cross-sold through INAP’s global footprint. Given this complementary product set, SingleHop’s technical expertise and momentum are expected to attract interest specifically among INAP Bare Metal and AgileCloud customer bases. This combination also advances INAP’s product road map for private cloud, managed public cloud, DRaaS, and other critical features designed to drive profitable growth.

Single Pane of Glass and Actionable Intelligence (“AI”) –
SingleHop’s single pane of glass for infrastructure and managed services will consolidate and merge separate customer interface portals into one single pane of glass, post integration (i.e., colocation, managed services, cloud, and network elements). The improved visibility, and control through AI are expected to exceed customer expectations and requirements, adding long-term customer retention benefits, as well as to help INAP operationally.

Increased Scalability –
SingleHop’s operations complement INAP’s presence in major markets including: Chicago, New York City, Phoenix, and Amsterdam. SingleHop hosts approximately 3,000 customers in state of the art Tier 3-type data centers that ensure the optimum redundancy, security, and critical infrastructure required. Proforma combined INAP will serve over 10,000 customers worldwide.

Experienced and Talented Management Team –
SingleHop has demonstrated a unique entrepreneurial culture that produced award winning solutions and industry recognition as evidenced in its position on the Gartner® Magic Quadrant for Cloud Enabled Managed Hosting.

“These two companies are extremely complementary, and together will offer customers an incredibly robust, modern IT platform, which was backed by investment firm Battery Ventures,” said Zak Boca, co-founder and CEO of SingleHop. “SingleHop’s innovative approach to IaaS and the delivery of managed services combined with INAP’s global data center and network presence, will give clients a one-stop-shop for their IT needs. This is a strong combination that I’m very excited to be a part of. I look forward to transitioning to become the Chief Marketing Officer of INAP.”

“Jennifer Curry, VP of Managed Hosting and Services at INAP, and team, have been focused on improving ways to deliver complex IT solutions to our customers,” stated Corey Needles, SVP and General Manager, INAP USA. “By acquiring SingleHop, we not only leapfrog product development gates, but Jen acquires an all-star team to attack opportunities that historically may have been challenging for either company to score on its own due to lack of product or size. Together, we are much stronger and excited about our growth potential in managed hosting and services as a value-added service to our data center business.”

Financial Summary: INAP will be acquiring SingleHop in an all cash deal for $132 million reflecting a purchase multiple of approximately 7x after synergies, based on annualized Adjusted EBITDA of approximately $16 million for 3Q 2017 and expected annualized cost synergies of $2 to $3 million. INAP expects SingleHop will contribute $45 to $50 million in annualized revenue post-closing. In INAP’s fourth quarter 2017 earnings release, INAP will provide combined proforma guidance, assuming a first quarter closing of the transaction. Adjusted EBITDA is a non-GAAP financial measure, which we define in the attachment to this press release entitled “Non-GAAP (Adjusted) Financial Measure.” A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure can also be found in the attachment.

INAP has entered into a commitment agreement with Jefferies Finance LLC to provide a fully underwritten debt financing which, combined with INAP’s cash on hand, will fund the entire transaction. Ultimately, INAP will look to optimize its capital structure with a blend of equity and debt securities to affect a leverage-neutral or better outcome. The transaction is expected to close before the end of the first quarter 2018, subject to customary closing conditions, including the expiration or termination of any applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

Transaction Advisors: RBC Capital Markets acted as lead financial advisor and Jefferies LLC acted as financial advisor to INAP. Jenner & Block LLP served as INAP’s legal advisor. On the sell-side, DH Capital acted as the sole financial advisor to SingleHop. Goodwin Procter LLP and Hinshaw & Culbertson LLP acted as joint legal advisors to SingleHop.

About Internap Corporation
Internap Corporation (NASDAQ:INAP) is a leading provider of high-performance data center services including colocation, managed hosting, cloud and network services. INAP partners with its clients, who range from the Fortune 500 to emerging start-ups, to create secure, scalable and reliable IT infrastructure solutions that meet the client’s unique business requirements. INAP operates in 51 Tier 3-type data centers in 21 metropolitan markets and has 90 POPs around the world. INAP has approximately 1 million gross square feet under lease, with 500,000 square feet of data center space. For more information, visit www.INAP.com.

About SingleHop
SingleHop, a leading global provider of hosted IT infrastructure and cloud computing, brings together a unique combination of enterprise-class technologies from industry-leading vendors, and a proprietary automation engine, to deliver a customized cloud infrastructure experience for enterprises of all sizes. Their powerful portal and award-winning automation platform make it simple to design and support the optimal cloud environment. Their service includes full-life cycle, white glove support, instantly-scalable solutions, and comprehensive integrated security. SingleHop serves approximately 3,000 customers in more than 124 countries with data centers across the United States and Europe.

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Pittsburgh, PA – Liberated Syndication, Inc. (OTCQB: LSYN) (“Libsyn”) announced today that it closed its acquisition of Internet hosting company Pair Networks, Inc. (Pair) on December 27, 2017. Libsyn paid $13.5 million in cash and issued 1,579,613 shares of restricted common stock valued at $2.5 million to acquire 100% of Pair. The combined businesses represented approximately $23 million in annual revenue and approximately $7 million in EBITDA for 2017.

“We are very excited about the opportunities that come from combining these two great, long standing, Pittsburgh-based companies,” said Chris Spencer, Libsyn CEO. “We have tremendous confidence in Pair’s leadership and employees and we intend to fuel revenue growth for the combined entities through sales and marketing investment, cross selling new and existing hosting products and streamlining network computing infrastructure.”


In order to finance the transaction, Liberated Syndication borrowed $10 million under a newly established Senior Secured Credit Facility (the “Bank Facility”) with First Commonwealth Bank, which also was closed on December 27, 2017. Borrowings under the Bank Facility are at variable rates which are, at the borrowers’ option. As of December 27, 2017, interest is set at LIBOR (London Interbank Offered Rate) plus 175 basis points, or 3.44%.

Pittsburgh-based Capital Foundry, LLC acted as advisor to the Company and Arranger for the Bank Facility.

As of December 31, 2017, the combined companies had approximately 82,000 monthly subscribers for hosting services. Management believes there are many cross selling opportunities including website and blog hosting services for podcasters, full-service WordPress solutions for website and blog development, domain name registration and hosting, as well as co-location hosting services for larger podcast networks, an area of significant potential growth in the podcasting industry.

“Podcasts are expected to continue to grow in popularity and have become an integral part of brand strategy along with websites, blogs and social media outlets. Pair’s hosting, domain and WordPress offerings are the tools podcast producers look for to develop online strategies to extend their reach,” said Laurie Sims, Libsyn President. “Libsyn is often seen as a media company because of the type of content we host, but we are fundamentally a hosting platform. We have a lot of synergy with Pair and understand the monthly subscription business model. We are thrilled to add the Pair team, its reliable infrastructure and world class support they provide.”

Additionally, Libsyn management believes there are growth opportunities to be had by capitalizing on Pair’s vast computing infrastructure, cloud based hosting services
and utilizing Pair’s highly regarded customer support team. Focused cyber security services is another area of additional revenue growth potential given recent threats and limited expertise for small and medium-sized businesses.

Management plans to host a shareholder conference call during the first quarter of 2018 to outline its plans for the combined companies in greater detail.

About Liberated Syndication
Liberated Syndication (Libsyn) is the world’s leading podcast hosting network and has been providing publishers with distribution and monetization services since 2004. In 2016 Libsyn delivered over 4.59 Billion downloads. We host over 3.2 Million media files for more than 35,000 podcasts, including typically around 35% of the top 200 podcasts in iTunes. Podcast producers choose Libsyn to measure their audience, deliver popular audio and video episodes, distribute their content through smartphone Apps (iOS, and Android), and monetize via premium subscription services and advertising. We are a Pittsburgh based company with a world-class team. Visit us on the web at www.libsyn.com.

About Pair Networks
Pair Networks, founded in 1996, is one of the oldest and most experienced Internet hosting company providing a full range of fast, powerful and reliable Web hosting services. Pair offers a suite of Internet services from shared hosting to virtual private servers to customized solutions with world-class 24×7 on-site customer support. Based in Pittsburgh, Pair serves businesses, bloggers, artists, musicians, educational institutions and non-profit organizations around the world. Visit us on the web at www.pair.com.

Capital Foundry
Capital Foundry, LLC, is a Pittsburgh-based investment bank with a focus on small to medium sized enterprises. The bedrock of Capital Foundry is the deep and varied experience of its people, and the businesses the leadership team has helped to grow and transform.

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OVERLAND PARK, KS – QTS Realty Trust (NYSE: QTS), an international provider of data center and hybrid IT solutions, announced today the completion of its annual American Institute of Certified Public Accountants (AICPA) Service Organization Control 1 Type II (SOC 1® Type II) and Service Organization Control 2 Type II (SOC 2® Type II) audit reports. The 2017 reports were issued by a Big Four public accounting and auditing firm based on an examination of QTS’ internal controls and procedures. In addition, QTS also attained ISO 27001:2013 certification for thirteen of its data centers.

ISO 27001 is an internationally recognized certification for information security management systems (ISMS) that demonstrates QTS’ strong security controls and meets the needs of large, multinational data center customers. By adding another certification, QTS now has one of the most comprehensive frameworks in the industry and it further enhances the company’s ability to assist customers in meeting their own compliance requirements.


QTS is committed to exceeding critical compliance standards for its customers. QTS’ SOC 1 Type II and SOC 2 Type II reports assure its clients that the company meets the suitability of design and operating effectiveness of applicable controls. Achieving compliance with other critical compliance standards such as FedRAMP, FISMA and PCI, demonstrates QTS’ ability to deliver secure, available and confidential services. The QTS Compliance team oversees more than 400 controls across several compliance standards to ensure the company is providing the highest level of compliance to its customers.

“By working with the best auditing firms in the country, we ensure that we are not just meeting the compliance requirements, but surpassing them,” said Oliver Schmidt who leads QTS’ dedicated in-house compliance team as Chief Audit Executive. “Meeting the highest standards for security, availability and confidentiality are all vital to the solutions we provide to our customers and our strategic growth.”

The QTS SOC 1 Type II and SOC 2 Type II audit reports are prepared in accordance with the AICPA’s Statement on Standards for Attestation Engagements (SSAE) No.18 Reporting on Controls at a Service Organization. The reports cover the period from October 1, 2016 to September 30, 2017 for QTS systems and controls and provides users with operational assurance across QTS’ software-defined data center platform.

About QTS
QTS Realty Trust, Inc. (NYSE: QTS) is a leading data center and managed cloud provider, offering a comprehensive portfolio of IT solutions built on the industry’s first Software-Defined Data Center Platform. QTS is a trusted partner to more than 1,100 customers throughout North America, Europe and Asia Pacific. QTS owns, operates or manages more than six million square feet of data center space. QTS provides cutting-edge technology; flexible, scalable infrastructure; and an industry-leading customer experience. Visit QTS at www.qtsdatacenters.com.

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Brought to you by Data Center Knowledge
Green House Data, provider of data center services primarily in tier 2 US data center markets, announced this week that it has acquired Ajubeo, a privately held provider of cloud infrastructure services hosted in data centers in two secondary US markets and two markets in Germany.
Ajubeo's data centers are in Denver, New Jersey, Frankfurt, and Dusseldorf, but Cheyenne, Wyoming-based Green House only plans to keep the Denver footprint, a company spokesperson told us over email Friday. Green House has had a data center in Denver already, so the deal expands its presence in that market.
The deal exemplifies a trend where smaller data center providers, who generally shy away from top markets like Northern Virginia and Silicon Valley, which are crowded by the biggest players, expand their footprint in secondary markets, where they provide not only data center space and power but also higher level technology services, such as helping enterprises chart and execute a path to a modern cloud infrastructure.
Green House has also been differentiating by purchasing 100 percent renewable energy for its facilities – something that's becoming increasingly important for corporate data center customers, many of whom have corporate sustainability programs and carbon reduction goals.
While Green House isn't completely absent from tier 1 US markets – it has a data center in Dallas – most of its footprint is in places like Denver, Portland,
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NORWALK, Conn. – 365 Data Centers, a leading provider of data center solutions for carrier, content, and cloud customers in eight strategic markets, announced today that it has acquired Broadband One LLC, d/b/a Host.net, a data center services provider in two southeast Florida markets.

The acquired facilities are in Boca Raton and Fort Lauderdale with approximately 62,000 square feet of floor space, 8,000 square feet of business continuity space, 4.5 MW of power, and 330 miles of fiber providing direct connectivity to the NAP of the Americas in Miami with under one millisecond of latency. In addition, the acquired business maintains more than 30 network PoPs on an owned nationwide transit network with 330 peering partners. When added to 365’s connectivity rich data center in Tampa, the Company now provides customers with the best edge data center options across the Sunshine State.


365’s footprint now covers ten markets with data centers in Boca Raton, Buffalo, Chicago, Detroit, Fort Lauderdale, Indianapolis, Nashville, Philadelphia, New York, and Tampa with a combined 195,000 square feet and 13 MW of power in place to serve customers. 365’s data centers are SSAE 16, SOC 2, PCI, HIPPA, ISAE 3402, and VISA compliant.

Bob DeSantis, Chief Executive Officer of 365 Data Centers, stated, “This follow-on acquisition, within just 6 months of purchasing the 365 Data Centers platform, provides significant financial scale for 365 and accelerates our strategy of broadening the Company’s customer and services base with more than 500 enterprise customers and a portfolio of scalable, retail and wholesale Network, IP blend, remote Disaster Recovery as a Service, virtual Cloud compute and storage, and Business Continuity product offerings.”

The objective of 365’s equity sponsors, Chirisa Holdings Inc., Lumerity Capital, and Longboat Advisors, at the time of the initial acquisition was to transform the predominantly colocation and connectivity rich platform business into a hybrid data center services provider that would appeal to enterprise customers in addition to its existing carrier, content, and cloud customer base.

DeSantis added, “With this transaction, we have re-positioned 365 Data Centers to provide customers in all ten of our markets with enhanced services including nationwide Metro Ethernet, long haul, and MPLS network/transport services, robust blended IP choices, direct, low latency connectivity to the NAP of the Americas, and cloud/colocation hybrid solutions through smart cloud architecture and a self-provisioning customer portal.” He further noted, “The high touch and customer focused Host.net network engineers, systems engineers, sales engineers, NOC, provisioning, sales, and operating personnel joining 365 will drive the Network, IP, DRaaS, and Cloud service offerings across all of 365’s markets and easily assimilate into the highly competent and professional 365 team.”

Jason Katz, Host.net’s CEO, will join 365 Data Centers as Vice President & Chief Administrative Officer reporting to DeSantis. In this role, he will continue as the Company’s point of contact for customers, vendors, and other relationship partners in the Boca Raton and Fort Lauderdale markets. He will also partner in the rollout of Network, IP, DRaaS, and Cloud service offerings and oversee the integration of all administrative functions.

Host.net was sold to 365 by Novacap, one of Canada’s leading private equity firms. Ted Mocarski, Senior Partner at Novacap, said, “It has been a real pleasure partnering with Jason and his team and we are happy to see the exciting possibilities that Host.net will have as part of 365 Data Centers. The eight additional markets provide geographic diversity that is of great strategic and operational value to existing Host.net customers.”

The Bank Street Group served as 365’s financing advisor and Greenberg Traurig as its legal counsel for this transaction. Crestline Specialty Lending provided the credit facility.

About 365 Data Centers
365 Data Centers is a leading provider of hybrid data center solutions in strategic edge markets. Our robust, carrier neutral ecosystem and secure, reliable edge Colocation, Network, IP, DRaaS, Cloud compute and storage, and Business Continuity services help organizations reduce costs, drive innovation and improve their customer experience. 365 Data Centers supports mission-critical application infrastructure by providing 100% uptime and adhering to industry standards such as HIPAA, PCI DSS, VISA, SSAE 16, SOC 2, and ISAE 3402. 365 Data Centers is based in Norwalk, Connecticut, and operates ten geographically diverse US data centers. Visit 365datacenters.com for more information.

About Novacap
Founded in 1981, Novacap is a leading Canadian private equity firm with $2.26 billion of assets under management. The Firm has raised over $2.6 billion in capital since its inception. Novacap’s unique investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous investee companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class companies. For more information, please visit www.novacap.ca.

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