Grows data centre footprint to more than 50 facilities across the world and a combined customer portfolio of more than 10,000 businesses.
IT infrastructure operator Internap (NASDAQ: INAP) has entered into a definitive agreement to acquire infrastructure as a service (IaaS) provider SingleHop in an all cash transaction worth $132m.
SingleHop is a Chicago-based company with approximately 3,000 customers across 124 countries and data centres in North America and Europe.
The combined business will result in a portfolio of more than 10,000 customers, with services presence especially increased in Chicago, New York City, Phoenix, and Amsterdam.
Internap’s footprint it to grow to more than 51 Tier-3 data centres in 21 metropolitan markets and 90 points-of-presence around the world.
The company currently manages one million gross sqf under leaser with 500,000 sqf of data centre space.
Internap will be acquiring SingleHop in an all cash deal for $132m reflecting a purchase multiple of approximately 7x after synergies, based on annualized Adjusted EBITDA of approximately $16m for 3Q 2017 and expected annualized cost synergies of $2m to $3m. INAP expects SingleHop will contribute $45m to $50m in annualised revenue post-closing.
Peter D. Aquino, President & CEO of INAP, said: “The INAP turnaround strategy includes restoring top-line organic revenue growth while leveraging smart tuck-in acquisitions to accelerate that growth.
“Today we announce significant progress on both fronts: We are reporting a positive outlook for 4Q 2017 revenue, which is up sequentially, and we are ahead of turnaround expectations. We are also pleased to announce the signing of an agreement to acquire SingleHop and welcome their customers and employees to the INAP family.”
Zak Boca, co-founder and CEO of SingleHop, said: “These two companies are extremely complementary, and together will offer customers an incredibly robust, modern IT platform, which was backed by investment firm Battery Ventures.
“SingleHop’s innovative approach to IaaS and the delivery of managed services combined with INAP’s global data center and network presence, will give clients a one-stop-shop for their IT needs. This is a strong combination that I’m very excited to be a part of. I look forward to transitioning to become the Chief Marketing Officer of INAP.”
