Oakley Capital Private Equity Acquires 2e2 Data Center Business

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Private equity fund Oakley Capital has acquired the data center unit and assets of bankrupt 2e2 and has appointed Daisy Group to manage the business.

Oakley is led by technology entrepreneur Peter Dubens, who happens to be a major shareholder in Daisy.

The deal now doubles the amount of data center capacity that Daisy Group manages, and significantly increases its presence in the data center market.

The private equity fund had been in early talks to buy 2e2 assets following the company’s bankruptcy status, but  could not agree on a price. But when 2e2’s administrators set a Friday deadline for customers to pay up £960,000 or it would shut down its two data centers , Daisy was able to swoop in with a lower offer.

Daisy Group will work with existing employees of 2e2’s data center unit to provide data center and web hosting services from its data centers in Gateshead and Reading, UK.

The two data centers provide double the data center power available to Daisy Group’s customers, increasing from 2 MW to 4 MW.

“This appointment provides 2e2 customers with the opportunity to work with a long-term partner with proven expertise in the growing data and hosting market,” said Matthew Riley, CEO of Daisy. “Through the additional data center facilities the Group is in a position to significantly expand its data and hosting footprint, providing stability to existing 2e2 customers and offering further expertise and resource to Daisy customers.”

This is the first major acquisition in the hosting space for Oakley Capital since November 2011 when the private equity fund acquired a 51 precent stake in German hosting provider intergenia AG.

Talk back: Are you currently offering data center services in the UK? Do you think Oakley Capital and Daisy Group will be able to help turn around 2e2 Data Center’s business? Let us know in the comments.

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