April 9, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Web hosting provider Hosted Solutions (hostedsolutions.com) announced on Tuesday that the company has been acquired by media and communications private equity firm ABRY Partners (abry.com) for $140 million.
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"After seven years it's obviously something I can't do on my own," said Lee in a phone interview. "It's a culmination of efforts of a lot of dedicated and talented employees here at Hosted Solutions that have helped me achieve this."
Hosted Solutions says there will be no changes made to the company and customers will experience the same quality of service and pricing as before. The company's management team, headed by founder and CEO Rich Lee, will continue to lead Hosted Solutions from its Raleigh, North Carolina headquarters.
Founded in June 2001, Hosted Solutions provide a range of services, including dedicated hosting, managed hosting, collocation and backup services. The 80-employee company says it has revenues in the $35 million to $50 million range.
Hosted Solutions currently operates five data centers in the markets of Charlotte, Raleigh, Cary and Boston, which are all interconnected by a fully redundant private network.
"We've had numerous opportunities and been approached by numerous firms," said Lee. "But after meeting with ABRY and talking to them and finding out their vision and knowledge of this sector -- which is probably the most important thing to me -- I decided to hitch my wagon to these guys."
Since 1989, ABRY has completed over $21 billion of transactions and other private equity and mezzanine investments, representing investments in more than 500 media and business properties. More recently, the firm purchased colocation and data center operator CyrusOne last July.
"ABRY believes in buying management teams and letting them operate," said Lee. "They can achieve great returns by leaving the business alone and helping in any way they see fit. I think they can help with potential expansion of footprint and consolidation opportunities in the sector and I think we can have the opportunity here to turn this company into something special."
Hosted Solutions was exclusively represented by DH Capital (dhcapital.com), an investment banking firm that serves the data center and managed hosting industries.
