KIO Networks, a leading Mexican IT service provider, has acquired San Diego`s redIT for an undisclosed amount, the companies announced this week. By adding redIT and its managed cloud computing, connectivity and data center services, KIO not only diversifies its portfolio of offerings and adds points of presence, but also gains a foothold in the world leading U.S. market.
KIO claims to be the largest independent data center services provider in Latin America with 15 data centers and network presence in Mexico, Panama, Guatamala, and the Dominican Republic. It also plans to expand to Spain.
The acquisition will give it a total of 28 data centers on 12 technology campuses, and redIT`s 500 employees will join KIO to give it a workforce of over 2,000.
“We have closely observed the development and growth of redIT and realized that we share the same core fundamental values,“ said Sergio Rosengaus, CEO of KIO Networks. “We see the integration of the two companies is far more than the sum of clients and services. The combination of talent from both organizations will enable us to conquer larger goals than ever.”
redIT counts numerous large and small companies among its clients, including IBM and Sony.
redIT opened a 95,000 square foot data center in Mexico City just over a year ago, and in August made a $72 million common stock sale. redIT was also named a 2014 “Cool Vendor“ by Gartner.
The deal is subject to regulatory approval, and is expected to be completed in the next few months.