terms

LAS VEGAS, NV – Super Micro Computer, Inc. (NASDAQ : SMCI ), a global leader in enterprise computing, storage, networking solutions and green computing technology, today introduced its latest fully configured, ready to deploy software-defined storage (SDS) solution at VMworld 2018 in Las Vegas, booth 2137, Mandalay Bay Hotel & Convention Center.

“Our new All-Flash NVMe BigTwin™ solution, which is fully ready to deploy and has undergone stringent validation testing and certification by Intel, VMware and Supermicro, is the preferred platform for many of today’s leading hyperconvergence players,” said Charles Liang, President and CEO of Supermicro. “This All-Flash vSAN hyper-converged solution accelerates software-defined storage, optimizes data center infrastructure, and ultimately fast-tracks the process of selecting and deploying hardware and software.”

This BigTwin SDS solution has higher core counts designed to support more virtual machines (VM) per node and system. With up to 3TB memory per node, All-Flash NVMe BigTwin technology is ideal for in-memory database applications. Each node supports six hot-swap NVMe drives to fully maximize performance.

Featuring Supermicro’s flexible, cost-optimized SIOM networking module, the All-Flash NVMe BigTwin supports a variety of 10G, 25G, 50G and 100G network interface options. The solution’s multi-node architecture maximizes power efficiency through resource sharing for greener computing and saves customers on both CAPEX and OPEX to deliver the best TCO.

Using Intel® Optane™ DC SSDs with NVMe support for caching helps this high-performance SDS solution accelerate storage performance up to 3X with endurance up to 30 drive writes per day (DWPD). These Supermicro VMWare solutions based on the BigTwin offer vSAN data protection for mission-critical applications. To learn more about this hyper-converged solution, refer to the following whitepaper: https://www.supermicro.com/white_paper/white_paper_BigTwin.pdf.

To address the rapidly growing demand for digital storage, many enterprise customers are looking at lower latency solutions with higher capacities. With 36 NF1 and 32 Ruler form factor NVMe SSDs, Supermicro’s Petascale 1U JBOFs and storage servers support large capacities of high-performance, all-flash NVMe storage in just 1U of rack space, which rivals much more expensive traditional storage at a fraction of the footprint and infrastructure cost.

In addition, Supermicro’s All-Flash 1U Ultra system (SYS-1029U-TN10RT) with proven low latency and high efficiency, when loaded with an NVIDIA Tesla V100 accelerator card, provides a very well balanced solution in terms of density, performance and efficiency for many AI, HPC and graphics applications.

To learn more about Supermicro All-Flash NVMe systems optimized for VMware vSAN, please see this whitepaper https://www.supermicro.com/white_paper/white_paper_Vitual_SAN.pdf.

About Super Micro Computer, Inc.
Supermicro® (NASDAQ : SMCI ), the leading innovator in high-performance, high-efficiency server technology is a premier provider of advanced Server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and Embedded Systems worldwide. Supermicro is committed to protecting the environment through its “We Keep IT Green®” initiative and provides customers with the most energy-efficient, environmentally-friendly solutions available on the market.

Read more

Filed under Web Hosting News by on #

SEATTLE – Amazon Web Services, Inc. (AWS), an Amazon.com company (NASDAQ: AMZN), announced general availability of Amazon Aurora Serverless. Aurora Serverless is a new deployment option for Amazon Aurora that automatically starts, scales, and shuts down database capacity with per-second billing for applications with less predictable usage patterns. Amazon Aurora Serverless offers database capacity without the need to provision, scale, and manage any servers. Aurora Serverless brings the power of the MySQL-compatible database built for the cloud to applications with intermittent or cyclical usage patterns without the need to manage database servers. To get started with Amazon Aurora Serverless, visit https://aws.amazon.com/aurora/serverless.

Many AWS customers have applications with intermittent or cyclical usage patterns. For example, retail applications often experience seasonal spikes. Development and test workloads require database access only at certain times of the day or week. In addition, all new applications face unknown usage demands. This creates a capacity planning dilemma for customers who must either over-provision database capacity upfront to pay for resources they will not use or under-provision resources and risk performance problems and a poor user experience. With Amazon Aurora Serverless, customers no longer have to provision or manage database capacity. The database automatically and quickly starts, scales, shuts down, and starts up again in seconds based on the needs of the workload. Customers simply create an endpoint through the AWS Management Console, and Amazon Aurora Serverless handles the rest. Customers pay by the second for database capacity only when the database is in use. Amazon Aurora Serverless brings the power of Amazon Aurora, the fastest growing service in the history of AWS, to applications that only require intermittent or cyclical database access at a fraction of the cost.


“More and more customers are moving production applications and databases from Oracle and SQL Server to Amazon Aurora because it’s a highly available, highly durable, built-for-the-cloud database at one tenth the cost of the older guard database offerings,” said Raju Gulabani, Vice President, Databases, Analytics, and Machine Learning, at Amazon Web Services. “With the availability of Aurora Serverless, we now make it more cost effective for our customers to run intermittent or cyclical workloads that have less predictable usage patterns such as development and test workloads or applications that experience seasonal spikes, making Aurora even more attractive for every imaginable workload.”

NTT DOCOMO is the largest mobile service provider in Japan, serving more than 73 million customers. “Our data-based services are often not used at full capacity, resulting in high database running costs,” said Tomoyoshi Ohno, Vice President and General Manager of Innovation Management Department, NTT DOCOMO. “Amazon Aurora Serverless will allow NTT DOCOMO to reduce operational costs by matching capacity to actual demand. Because developers can use Amazon Aurora Serverless just like a traditional MySQL database, it will be easy to adopt in our service infrastructure.”

Pagely is the WordPress hosting leader in innovation, speed, scalability, and security, with thousands of clients ranging from the largest tech companies, to universities, creative agencies, city and state governments, and other large and midsize businesses. “We are excited by the flexibility that Amazon Aurora Serverless offers in our current managed WordPress hosting stack, and the new serverless WordPress application hosting model that it enables us to pursue,” said Joshua Strebel, Founder and CEO, Pagely. “Many of our large-scale WordPress sites have unpredictable database usage. Amazon Aurora Serverless gives us the ability to lower customer costs for these fluctuating workloads and free internal resources by eliminating the need for manual or monitored database resizing. Ultimately this is about saving time, money, and serving our customers better, and Amazon Aurora Serverless will help us do that.”

California Polytechnic State University is a nationally-ranked public university that’s driven by its core philosophy of Learn by Doing — a powerful combination of academic expertise and hands-on experience. “Our Learning Management System (LMS) is central to the student experience at Cal Poly, and we have high standards for performance, scalability and high availability,” said Alison Robinson, Associate Vice President, Cal Poly Information Technology Services. “Amazon Aurora meets our high standards. Given LMS usage patterns, with peaks during the first week of class, mid-terms, and finals, we expect to economize by paying only for the resources we need when we need them and eliminating the need for on-premises hardware. We also capitalize on the flexibility of the AWS environment that allows us to automatically shut down development and test instances when not in use, and spin them up quickly when needed.”

CB Insights is a private market intelligence firm that aggregates and analyzes massive amounts of data and uses machine learning and data visualization to help corporations answer strategic questions. “Leveraging serverless computing is key to our system architecture strategy at CB Insights as it allows us to handle bursts in computation needs in an effective and cost efficient manner,” said Pal Hoye, Chief Technology Officer of CB Insights. “We are excited about the opportunity to bring the serverless model to databases through Amazon Aurora Serverless. Through the preview program we have had early access to Aurora Serverless and it has confirmed the applicability for unpredictable data access scenarios. It’s also a good option for development/staging databases, which can be shut down when not in use to achieve additional cost savings.”

Cognizant is one of the world’s leading business and IT services companies, providing technology, consulting, and operations services to help companies digitally transform their businesses. “The launch of Amazon Aurora Serverless has been highly anticipated by the market,” said Arun Varadarajan, Vice President, AI and Analytics at Cognizant. “It complements several of our offerings, including Cognizant Adaptive Data Foundation, a solution which enables the creation of cloud-based, holistic data strategies requiring insights, scale and speed. Amazon Aurora Serverless will enhance products like Cognizant Lab Insights, an intelligent, connected lab performance management solution, because a serverless database architecture supports the intermittent data usage requirements of lab environments and provides better flexibility, scalability, and cost-effectiveness.”

Amazon Aurora Serverless (MySQL-compatible edition) is available in US East (N. Virginia), US East (Ohio), US West (Oregon), EU (Ireland), and Asia Pacific (Tokyo), and will expand to additional Regions in the coming year.

About Amazon Web Services
For over 12 years, Amazon Web Services has been the world’s most comprehensive and broadly adopted cloud platform. AWS offers over 125 fully featured services for compute, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, virtual and augmented reality (VR and AR), media, and application development, deployment, and management from 55 Availability Zones (AZs) within 18 geographic regions and one Local Region around the world, spanning the U.S., Australia, Brazil, Canada, China, France, Germany, India, Ireland, Japan, Korea, Singapore, and the UK. AWS services are trusted by millions of active customers around the world—including the fastest-growing startups, largest enterprises, and leading government agencies—to power their infrastructure, make them more agile, and lower costs.

About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.

Read more

Filed under Web Hosting News by on #

REDWOOD CITY, CA and MUSCAT, Oman – Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, and Oman Telecommunications Company (Omantel, a MSM listed company: OTEL), announced the companies have entered into a joint venture to deliver data center and interconnection services to customers in the Middle East through the development of a new network-dense data center that will be located in Barka, near Muscat, the capital of Oman. This joint venture will establish the first world-class, carrier-neutral hub in Oman where carriers, content providers and cloud providers colocate critical IT infrastructure.

Oman is strategically positioned between Asia, Africa and Europe, and the new Equinix International Business Exchange™ (IBX®) data center will create a regional interconnection hub with ultra-low latencies between global business markets. Based on demand and requirements, customers in the GCC and wider MENA region can also leverage other Equinix data centers in the region for dual access to content providers, allowing carriers, content providers and cloud providers to further build resilience into their IT and network infrastructure.


The new IBX data center in Oman will benefit from connectivity to strategic cable landing stations (CLS) and subsea cable systems that terminate directly inside the facility. It will also benefit from the investments by Omantel in multiple strategic subsea cable systems throughout the region and world. This subsea cable connectivity will provide customers with significant cost savings and an increase in performance and security.

Under the terms of the agreement, Equinix and Omantel will both fund equity contributions in an amount of US$10 million for the joint venture representing a 50% shareholding each, and additional funds will be raised through debt financing assumed by the joint venture company. The shareholders’ agreement was signed on June 20, 2018, and the joint venture company was established on June 26, 2018.

Equinix will operate the new IBX data center, which will include 18,600 square feet of colocation space and approximately 750 cabinets at full build. The first phase of the three-phase build will include 250 cabinets and is expected to be completed and open for business by Q2 2019.

According to the recently published document Worldwide Datacenter Installation Census and Construction Forecast, 2018–2022, IDC observes a clear trend of movement of internal data centers to service provider data centers. With more than 200 data centers worldwide, Platform Equinix™ enables customers to easily interconnect with one another in business ecosystems for maximum collaboration across digital supply chains in 52 markets globally. Additionally, 30 Equinix metros are close enough to the shorelines to support the CLS model.

Omantel is a global communications provider with cable landings and connectivity to more than 120 cities globally. It has investments in 20 subsea cable systems and leverages six diverse landing stations in Oman and one in France. Additionally, Omantel is an investor in AAE-1 consortium, one of the largest, newest high-capacity connections between Asia, Africa and Europe. Omantel has also invested in multiple regional and international cables including Europe India Gateway (EIG), Bay of Bengal Gateway (BBG), Gulf to Africa (G2A), and Silk Route Gateway-1 (SRG-1), among others. As a result, Omantel will be able to offer a redundant and unique latency of 160ms between Frankfurt and Singapore, two of the world’s main capacity hubs accessible directly from within the new IBX data center in Oman.

About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 52 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.

About Omantel
Omantel Wholesale is the international and domestic wholesale arm of Oman Telecommunications Company S.A.O.G. (Omantel), the first and leading integrated telecommunications service provider in Oman. Founded in 1970, Omantel is a joint-stock company listed in Muscat Securities Market and is 51% owned by Oman Investment Fund (OIF), a wholly owned investment arm of the Omani government. The company has laid the groundwork for telecommunications and technological advancement in the country and it continues to invest heavily within its own borders and abroad. As a result, Omantel has acquired a controlling stake in Kuwaiti Mobile Telecommunications Company (Zain Group) last year, making it the second largest shareholder in the company. Omantel Wholesale capitalizes on ultra-low latency networks to enable innovation and digital transformation globally, utilizing Oman’s geographic advantage at the absolute nexus of the east, west, north, and south to enable its customers and partners to deliver their services with the best possible end-user experience.

Read more

Filed under Web Hosting News by on #

JACKSONVILLE, FL – Web.com Group, Inc. (NASDAQ:WEB), a leading global provider of a full range of Internet services and online marketing solutions for small and medium‐sized businesses, today announced that it has entered into a definitive agreement to be acquired by an affiliate of Siris Capital Group, LLC in an all-cash transaction valued at approximately $2 billion.

Under the terms of the agreement, which has been unanimously approved by the members of Web.com’s board of directors, an affiliate of Siris will acquire all of the outstanding common stock of Web.com for $25.00 per share in cash. The purchase price represents a 30% premium over Web.com’s 90-day volume-weighted average price ended on June 19, 2018.

A special meeting of Web.com’s shareholders will be held as soon as practicable following the filing of a definitive proxy statement with the U.S. Securities and Exchange Commission (“SEC”) and subsequent mailing to its shareholders.

Web.com may solicit alternative acquisition proposals from third parties during a “go-shop” period from the date of the agreement until August 5, 2018. There is no guarantee that this process will result in a superior proposal, and the agreement provides Siris with a customary right to match a superior proposal. Web.com does not intend to disclose developments with respect to the solicitation process unless and until the company determines such disclosure is appropriate.

“This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value,” said David L. Brown, chairman, CEO and president of Web.com. “Based on our extensive engagement with Siris over the past two months and our prior discussions with them, we are confident that Siris’ support will enable Web.com to execute on its strategy and next phase of growth.”

Commenting on the transaction, Robert Aquilina, Siris Capital executive partner, said: “Web.com has a 20+ year legacy of leadership in the domain market with strong brand equity and a growing portfolio of attractive, value-add online and marketing services for SMBs. Siris looks forward to nurturing Web.com’s core domain business, supporting and anticipating the diverse needs of the company’s customers, and driving new opportunities for innovation and growth.”

Frank Baker, Co-Founder of Siris Capital, commented: “We are excited to partner with Web.com as it embarks on this new chapter of growth and market leadership. As a private company, Web.com will be able to make strategic investments for sustainable and profitable growth, while remaining agile and focused on delivering best-in-class solutions to its customers.”

The proposed transaction is expected to close in the fourth quarter of 2018 and is subject to approval by Web.com’s shareholders, along with the satisfaction of customary closing conditions and antitrust regulatory approvals, as necessary. The transaction is not subject to any financing condition. Upon completion of the acquisition, Web.com will become wholly owned by an affiliate of Siris.

Web.com will file its quarterly report on Form 10-Q reporting its second quarter financial results but does not intend to host a quarterly earnings call.

About Web.com Group, Inc. | Web.com
Since 1997 Web.com (Nasdaq:WEB) has been the marketing partner for businesses wanting to connect with more customers and grow. We listen, then apply our expertise to deliver solutions that owners need to market and manage their businesses, from building brands online to reaching more customers or growing relationships with existing customers. For some, this means a fast, reliable, attractive website; for others, it means customized marketing plans that deliver local leads; and for others, it means customer-scheduling or customer-relationship marketing (CRM) tools that help businesses run more efficiently. Owners from big to small can focus on running the companies they know while we handle the marketing they need. To learn how this global company collaborates with customers and employees to achieve their potential, explore www.web.com or follow on Twitter at @webdotcom or on Facebook at www.facebook.com/web.com.

About Siris Capital Group, LLC | Siris Capital
Siris Capital is a leading private equity firm focused on making control investments in data, telecommunications, technology and technology-enabled business service companies in North America. Integral to Siris’ investment approach is its partnership with exceptional senior operating executives, or executive partners, who work with Siris on a consulting basis to identify, validate and operate investment opportunities. Their significant involvement allows Siris to partner with management to add value both operationally and strategically. To learn more, visit us at www.siriscapital.com.

Read more

Filed under Web Hosting News by on #

AUSTIN, TX – Hostway, a leading managed cloud hosting provider and specialist in compliant hybrid and multi-cloud hosting solutions, today announced its acquisition of the Toronto-based MyHosting.com and Mail2Web lines of business from Ingram Micro. Under the terms of the deal, the MyHosting.com brand, customers and key employees join Hostway; Hostway continues to operate and evolve the MyHosting brand, products and platform.

Hostway plans to leverage the skillset and experience of the MyHosting.com team members to further bolster its capabilities with Ingram Micro’s CloudBlue Automation platforms and will incorporate the platform more broadly in both its direct and wholesale channels.

“We are honored to have the talented and experienced MyHosting.com team members join our family of employees at Hostway and to expand our footprint in Canada with an office in Toronto in addition to our existing location in downtown Vancouver,” said John Enright, SVP and General Manager at Hostway. “We look forward to building upon the innovative products and features the MyHosting.com team has deployed on the CloudBlue platform, and to providing its loyal base of direct customers and resellers with the very best service.”

“For the past 20 years, Hostway has been a dominant player in enabling the largest communications companies in North America to deliver a wide variety of value-added services to millions of subscribers,” said Emil Sayegh, President and CEO of Hostway. “The acquisition of MyHosting.com and our partnership with Ingram Micro, in conjunction with the power and flexibility of the CloudBlue platform, further strengthen and diversify our automation capabilities. Automation platforms like CloudBlue – when combined with our passionate support team, experienced system operations team and skilled system integrators – make us the partner of choice for telecom and cable companies in need of turnkey solutions to offer additional value added services to their customers.”

“Hostway has been a valued, long-term partner of Ingram Micro, and this transaction builds further on our joint commitment to support the business requirements of our customers and the profitable growth of our respective businesses,” said Nimesh Dave, Executive Vice President Global Cloud Computing at Ingram Micro. “Our CloudBlue Automation platform is an excellent gateway supporting the rapidly growing demand for cloud-based solutions, one that enables leading service providers like Hostway to rapidly deploy and scale a wide variety of value-added services for their direct customers and partners. Hostway’s proven track record of providing excellent service offers an exceptional experience for both the MyHosting.com customer base and the talented employees that are joining to the Hostway team.”

About Hostway Services
Hostway Services, Inc. is the world’s most trusted managed compliant hosting provider, delivering managed cloud infrastructure and application hosting solutions for telecommunication and cable companies, as well as software companies including healthcare, SaaS and e-commerce focused organizations. Its team of engineers in North America, Europe, and Asia deliver reliable, secure and scalable web hosting, email hosting, private cloud, managed cloud and hybrid cloud hosting solutions to thousands of customers across ten geographically diverse SSAE 16 and ISO 27001 data centers around the world while ensuring strict compliance such as PCI and HIPAA. At Hostway, every customer interaction is treated as an opportunity to develop a long-term relationship based on trust. Visit http://hostway.com for more information.

About Ingram Micro Inc.
Ingram Micro helps businesses Realize the Promise of Technology™. It delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, mobility, cloud, and supply chain solutions enables its business partners to operate efficiently and successfully in the markets they serve. Unrivaled agility, deep market insights and the trust and dependability that come from decades of proven relationships, set Ingram Micro apart and ahead. More at http://www.ingrammicro.com.

Read more

Filed under Web Hosting News by on #

BOSTON – Iron Mountain Incorporated (NYSE: IRM), the storage and information management services company, has acquired EvoSwitch Netherlands B.V and EvoSwitch Global Services B.V. (“EvoSwitch NL”) for €205 ($235) million. The transaction provides 11 megawatts (MW) of existing data center capacity in the Netherlands, which is 100% leased, with expansion capability of an additional 23 MW, for total potential capacity of 34 MW.

Founded in 2007, EvoSwitch NL is a leading global brand and provider of multi-tenant data center space, operating one of the largest colocation facilities centers in the Metropolitan Region Amsterdam (MRA). Its existing campus supports more than 50 connectivity and telecommunication providers, including world-leading internet exchanges, such as the Amsterdam Internet Exchange AMS-IX. The MRA is a critical node in the FLAP data center market (Frankfurt, London, Amsterdam, Paris), which totaled approximately 1160 MW at the end of 2017. The MRA experienced net absorption of more than 21 MW of space in the fourth quarter of 2017, making it the second largest data center market in Europe and a Top 5 global market. This transaction enhances Iron Mountain’s presence in the important FLAP market, following Iron Mountain’s move into London early this year through the purchase of a data center facility from Credit Suisse.

The MRA region also boasts the lowest average energy prices and the most reliable energy grid among FLAP markets. EvoSwitch NL has focused on sustainable operations since its founding and had the first 100% carbon neutral data center facility in the Netherlands using wind, hydro and biomass power, consistent with Iron Mountain’s commitment to offsetting 100% of its data center carbon footprint.

EvoSwitch NL has a diversified base of global customers including multinational enterprises, cloud service providers and public sector institutions. Leaseweb Netherlands B.V., (“Leaseweb NL”), a related party of the seller and a large cloud hosting company with operations in 35 countries, represents approximately 45% of EvoSwitch NL’s contracted revenue under a 10-year lease agreement, making it one of Iron Mountain Data Centers’ Top 5 customers. No other customer represents more than 15 percent of total revenue.

The EvoSwitch NL data center acquisition includes two locations in the MRA. The first is a state-of-the-art facility totaling 150,000 square feet of space with 87,000 square feet of existing data halls, representing approximately 11 MW of existing power capacity. Expansion of a further 2 MW is underway at this location, with 600 kilowatts preleased to Leaseweb NL. This location is expandable to a total of 430,000 square feet of space that can support additional data halls totaling 14 MW, bringing the first location to 27 MW of total potential capacity.

The second location is a site that can support a 57,000 square-foot facility including 41,000 square feet of data hall development. Expansion capacity at this site can support a further 7 MW, bringing total potential capacity for the two locations to 34 MW.

“We are pleased to welcome the EvoSwitch team and its customers to Iron Mountain. The seasoned management team has operated in the data center business for more than 11 years and delivered consistent growth,” said Mark Kidd, senior vice president and general manager, Iron Mountain Data Centers. “EvoSwitch NL’s focus on security, energy efficiency and its solid track record of continuous uptime is a great fit with our existing data center organization. When combined with current and potential capacity in Iron Mountain’s existing data center portfolio, our total portfolio now represents more than 285 MW across many of the most attractive and highest net absorption markets in the U.S. and globally.

“Having established our significant international data center platform through both recent transactions and organic growth, we look forward to continued integration of the business, and our near-term growth will be primarily from the development of new space in the attractive global markets where we have a presence,” Kidd added.

Eric Boonstra, chief executive officer, EvoSwitch said, “We look forward to combining our EvoSwitch NL business with that of Iron Mountain Data Centers, which shares our commitment to customer service and operational excellence. This transaction represents an opportunity for us to extend relationships with our existing customers by providing data center expansion capacity in important continental European markets, and the potential to provide capacity in the important Amsterdam region to Iron Mountain’s legacy data center customer base.”

Leaseweb founder and CEO Con Zwinkels added, “We share Eric’s enthusiasm for this acquisition of EvoSwitch NL. As a global cloud hosting company serving more than 17,500 customers worldwide, it is important for us to accommodate their growing needs. Through this transaction, Leaseweb has improved access to a broad portfolio that includes Iron Mountain’s data centers around the globe. We are pleased to be partnering with a company that has such a strong reputation for security and reliability.”

Transaction Economics

The consideration of €205 ($235) million, represents a multiple of approximately 14x 2018 EBITDA, excluding integration expense. The purchase agreement also includes a future revenue credit to Leaseweb, in the amount of $25 million, which may be utilized for future expansion and new leasing in any of Iron Mountain Data Centers’ other global locations prior to June 2028, subject to other terms.

Iron Mountain projects a stabilized net operating income yield of 12% – 13% following build-out and lease-up of the expansion capacity at the EvoSwitch NL locations. The existing EvoSwitch NL capacity is expected to generate annualized revenue of approximately $30 million at mid-50% Adjusted EBITDA margins. Including integration costs, Iron Mountain expects the transaction to result in modest AFFO dilution of approximately 0.5% in 2018, and for the acquisition to be accretive in 2019 following integration.

While the EvoSwitch NL acquisition was not part of Iron Mountain’s previously disclosed 2020 plan, the transaction supports the company’s goal to accelerate Revenue and Adjusted EBITDA growth through a shift in mix to faster-growing, higher-margin businesses. The transaction is debt financed. The company remains on track to reduce its lease-adjusted leverage ratio to the mid-5x range by year-end 2018, and is committed to its 2020 plan to reduce its leverage ratio to approximately 5x, and lower its dividend payout as a percentage of Adjusted Funds From Operations to 70% – 75%, assuming annual dividend per share growth of approximately 4%.

About EvoSwitch NL
EvoSwitch NL was founded in 2007 as part of the Ocom Group (www.ocom.com), Europe’s largest privately owned internet services company, and the first carbon and carrier-neutral data center in the Netherlands. Since then it has grown continuously, reflecting the growth of the Internet in general and its customers in particular. Following through on its carrier-neutral proposition, it has also built up a diverse ecosystem of telecommunications carriers and network service providers that help customers connect cost-effectively and with confidence. Following the sale of EvoSwitch NL, the selling entity, EvoSwitch International B.V. will remain part of the Ocom Group and will continue as a brand and data center operator, with operating companies EvoSwitch Germany GMBH and EvoSwitch USA, Inc.

About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 85 million square feet across more than 1,400 facilities in over 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include information management, digital transformation, secure storage, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working. Visit www.ironmountain.com for more information.

Read more

Filed under Web Hosting News by on #