365 Data Centers Acquisition to Fuel Organic, External Growth

365 Data Centers‘ acquisition by private investment firm Stonecourt Capital primes the company for continued growth.

In addition, original investors Lumerity Capital and Longboat Advisors have reinvested into the new partnership.

365 Data Centers operates 230,000 square feet of data center space and 22 megawatts of available power. It also operates a 100G network interconnecting its 12 data centers, 21 other points of presence and over 400 peering partners. It offers services to over 650 customers in the eastern United States.

Bob DeSantis will continue to lead the company as CEO, board member and investor.

365 Data Centers’ Bob DeSantis

“In terms of continuing relationships and agreements with all of our channel partners, and for that matter, all of our customers, there is no change as the entire management team, employee base and I will remain intact,” he said. “The addition of Stonecourt Capital as a majority equity holder provides 365 with significant capital to grow its geographic footprint and service offerings, and to expand its facilities, network and cloud platforms as needed to meet growing customer demand for IaaS services.”

Company Transformation

DeSantis led the company’s transformation from a strictly colocation business into a full-service, hybrid data solutions provider.

Since its inception in 2017, 365 Data Centers has acquired, financed and integrated four complementary businesses. In February, it acquired a data center facility from MindShift Technologies. That brought its total number of data centers to 12.

“365 expects to accelerate its successful acquire/integrate/build strategy, which will give its partners a broader scope of services and locations, and redundancy,” DeSantis said.

Fueling Rapid Growth

The increasing need for storing and transporting data is fueling 365 Data Centers’ growth, DeSantis said.

“With 3 billion gig of data being generated every day and a forecasted 27% CAGR by some research groups, 365, as a network-centric edge IaaS provider, is well positioned,” he said.

Lance Hirt is a Stonecourt partner. He said several near-term acquisition opportunities are under consideration. That will enhance the company’s service offerings.

Last week, DataBank announced it is getting 44 Zayo data centers through its acquisition of zColo, Zayo‘s colocation division. The Zayo data centers include 13 key interconnect locations across 23 markets in the United States and Europe. The acquisition creates one of the largest privately held data center operators in the United States.