(WEB HOST INDUSTRY REVIEW) — Bolstering its managed services, Dallas-based Horizon Data Center Solutions (www.horizondcs.com) has bought application service provider Mareechi (www.mareechi.com), which has provided outsourced IT services to more than 100 clients world-wide for nearly a decade.
According to Horizon’s Wednesday announcement, the specific terms of the agreement were not disclosed, however, Mareechi and Horizon’s combined estimated revenues in 2009 were in excess of $20 million, offering some insight into the sale price of Mareechi.
Also based in Dallas, Mareechi will become a managed services division of the Horizon family of companies. Horizon intends to keep Mareechi intact, retaining all employees.
The acquisition lets Horizon offer major Mareechi clients such as Hunt Capital Group and Pizza Hut Park immediate access to Horizon’s mission critical data center and business continuity services. In turn, Horizon data center clients will have the option to expand their services with Horizon into the hosting and application management areas.
Launched in mid-2008, Horizon originally planned to build a managed services division internally, according to Horizon chief executive officer Lance A. Smith said Horizon, but the rapid growth, expansion and success of its core data center services, coupled with client demand, led the company to look for an acquisition candidate so it could expand into the managed services area quickly to meet customer needs.
“As our customers have begun to rely on our partnership and warm to our model of doing business, they began asking us for more services that would save them money,” said Smith. “We had two options: build it or acquire it. We felt the most prudent strategy would be to find a company with a proven track record and existing customer base, acquire it, and provide benefits to both sides of the house. With Mareechi, we found our opportunity.”
Mareechi CEO Lance Black, who founded the company nine years ago, will be remaining at Mareechi as executive vice president of operations.”With the strength of Horizon, we can continue to build a solid, profitable managed services company and keep our focus on being high touch,” Black said in a statement.
“With this acquisition, we gain the strength of a parent company that can help us expand on our annual 25 percent growth rates.” Black anticipates Mareechi, as a division of Horizon, will double in both size and revenue within a year.
With more than 50,000 square feet of data center space located within the North Dallas corridor, Horizon is adding a Houston data center and data centers on each coast, which the company said will be completed in the next 12 months. Horizon also plans to expand in its existing facilities in the third quarter.
