Company raises $16 million in funding and gains access to additional $55 million credit facility to support sustained growth
EMERYVILLE, Calif., Sept. 10, 2014 /PRNewswire/ -- 365 Data Centers, one of the top U.S. colocation providers by market presence, today announced that it has raised $16 million in Series B funding from existing investors Crosslink Capital and Housatonic Partners and has secured a $55 million credit facility from Fortress Credit Corp., an affiliate of Fortress Investment Group, that enables the company to execute on its continued expansion strategy. Just a few months after announcing a new management team, corporate identity and 365 Quick Start which makes data centers more accessible, 365 Data Centers has achieved triple-digit percentage YOY sales growth and broken its all-time quarterly sales record by over 20 percent.
The financing will be used for ongoing operations and to help the company realize its growth strategy as a provider of colocation services in tier 1 and tier 2 U.S. markets. The funds will also be used to develop new data center products, as well as expanding its cloud and managed services offerings. With a presence in 16 U.S. markets, more than most other colocation providers, 365 Data Centers provides highly reliable data center services with cloud-like, commitment-free contract terms that are ideally suited for service providers, content providers, carriers, and small to medium-sized businesses.
"365 Data Centers brings greater flexibility and accessibility to clients through solutions that simplify colocation services to bring them more in line with cloud consumption models. This new financing allows us to continue executing on our growth strategy, whether organically or by acquisition," said John Scanlon, CEO, 365 Data Centers. "We've put together an experienced management team, created a strong growth plan, and delivered great results in a matter of months. We have the faith and support of capital markets behind us, and when talent meets capital, good things happen."
"At Fortress, we have provided financing to many leading data center companies. In our view, 365 Data Centers is similarly positioned to succeed in the expanding data center and cloud industries," said Aaron Blanchette, Managing Director at Fortress Investment Group LLC. "We look forward to playing a part in 365's organic expansion and potential mergers and acquisitions, as opportunities arise."
"With the largest cloud market in the world and increasing cloud adoption driving data center and colocation services expansion, North America represents a great market opportunity with expected growth of approximately 15 percent this year to more than $8 billion," said Gary Hromadko, partner at Crosslink Capital. "We couldn't be more pleased with the company's success in this expanding market and remain steadfast in our ongoing support of its strategy."
"365 Data Centers shows very positive operational and financial strength, and the financing provided by Fortress further buoys our success with clients and equity markets," said Kevin Bostick, CFO, 365 Data Centers. "The deep domain expertise of our financing partners coupled with audit and tax services from major firms and legal representation from Alston & Bird LLP makes it easier for us to financially succeed. With growth equity available to further our expansion plans we can continue along the path of providing customers with superior service, including important features such as our recently announced certifications for HIPAA and SSAE 16 compliance."
365 Data Centers' HIPAA and SSAE 16 compliant facilities offer a wide choice of broadband carriers and feature power, cooling, connectivity and security 24 hours per day, 7 days per week and 365 days per year.
About 365 Data Centers
365 Data Centers provides secure and reliable colocation services that offer an easier way to scale business growth and connect to the cloud. Through its 17 U.S. data centers, 100% uptime SLA, and national network of carriers and content providers, 365 Data Centers offers flexible pricing models that let customers pay as they grow with no long-term lock in. Services are secure and tailored for small and mid-sized businesses, telecom carriers and cloud service providers. We partner with businesses, technology leaders and community leaders to build technology centers that enable economic growth. With 365 Data Centers as a local provider, driving business growth just got easier. For more information, visit 365datacenters.com.
Fortress Investment Group LLC is a leading, highly diversified global investment firm with approximately $63.8 billion in assets under management as of June 30, 2014. Founded in 1998, Fortress manages assets on behalf of approximately 1,600 institutional clients and private investors worldwide across a range of private equity, credit, liquid hedge funds and traditional asset management strategies. Fortress is publicly traded on the New York Stock Exchange (NYSE:FIG). For more information, please visit www.fortress.com.