acquires

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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In two separate announcements this week, Hostopia acquires an Australian web hosting business to grow its Asia-Pacific reach, while 365 Data Centers grows its data center footprint.
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DENVER, CO – SiteColo, a Wadsworth Littleton, LLC company, announces the acquisition of controlling interest in MuchPages, LLC. SiteColo will be the single largest shareholder at 70% percent.

SiteColo, one of the fastest growing web hosting companies of 2017, provides cloud web hosting and domain services to organizations of all sizes. Since the last fiscal quarter, SiteColo has grown in revenue by over 240%. The addition of the MuchPages drag and drop page builder will add yet another service to this award-winning lineup.


“We’re excited to be able to provide our customers this new service,” said Jason Jersey, President of Wadsworth Littleton, LLC. “Our infrastructure will only enhance the current overall customer experience.”

MuchPages was initially developed as a specialty site builder, offering users the ability to easily and quickly create stunning landing pages, capture pages, and the growing market segment of single page websites. The real power of MuchPages is that it is simple enough for an amateur to use, yet powerful enough to be the go-to tool for any digital marketing agency or department. In addition, this move brings additional value to the existing MuchPages customer base as well by being able to offer other services in one convenient place.

“I am looking forward to working alongside the SiteColo team. With these additional resources, MuchPages will be able to fulfill it’s potential, and provide our customers the best possible experience.” Bill Gelwick, Chief Marketing Officer of MuchPages, LLC.

The combining of these services offers customers the utmost in flexibility. Businesses have a need to rapidly create custom pages to support various promotions, social campaigns, or even paid advertising. Anyone with a website can benefit from the use of MuchPages, which is why we felt it would be the perfect acquisition. These combined services offer businesses efficient, cost-effective solutions.

“If we can help generate more business for our customers, it will, in turn, provide more business for us,” said Jason Jersey, President of Wadsworth Littleton, LLC. “It is a true win/win, something very rare in the business world today.”

About SiteColo
SiteColo is a managed cloud hosting and domain registration provider with 24/7 support. Their Operations Center is located in Denver, Colorado and their main Data Center is headquartered in downtown Chicago, Illinois. SiteColo is beyond a standard hosting company – they’re an innovation company, developing proprietary technology used to drive customer success. The company currently provides managed cloud infrastructure to several notable car manufacturers, dealers, fitness centers, rehabs, and notable religious organizations. Additional information about SiteColo can be found at https://www.sitecolo.com/ and for information about the newly acquired service offering, visit https://muchpages.com/.

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