Data Center Finance: BYTEGRID Announces Acquisition of NetRiver

BYTEGRID Holdings announced in July that it is acquiring Seattle-based NetRiver in an effort to expand the company’s portfolio on the West Coast and create a national footprint.

In addition to continuing NetRiver’s operations, BYTEGRID will immediately begin to offer additional Seattle data center space to serve government groups, enterprises and service providers interested in colocation space and services in the Washington area. NetRiver customers will also be able to access BYTEGRID’s growing national network of data centers.

The plans of the acquisition call for a multi-million dollar expansion of NetRiver’s Seattle data center, enhancing the service offerings to the company’s existing customers and creating room for growth within the facility. The data center comprises 45,000 square feet and offers 5.4 MW of critical power.

Acquisition extending BYTEGRID’s reach
Under the terms of the agreement, BYTEGRID will acquire all of NetRiver’s additional assets, including customer contracts and the lease to a second, smaller data center also in the Seattle area that is used primarily as a disaster recovery center. BYTEGRID has also expressed interest in further expansion on other parts of the Seattle data center to support anticipated long-term growth.

“This acquisition and expansion is the latest step in the execution of our growth plan as we have evolved into a leading provider of colocation solutions to mid-market, large enterprise and government entities,” said BYTEGRID CEO Ken Parent. “NetRiver is a leading market innovator in the Seattle area, providing premier customer service, network-neutral data centers and interconnection services to a technologically-savvy, diverse customer base. They add substantial technology expertise that will enable us to overlay mid-market colocation and managed services across our portfolio.”

The acquisition of NetRiver provides BYTEGRID with access to a managed services platform that can be implemented throughout the company’s existing portfolio and enhance customer offerings. The transaction also results in the addition of 170 NetRiver customers into the BYTEGRID base, vastly expanding their reach.

Earlier this year, BYTEGRID also announced the acquisition of a 70,000 square foot Tier III Chicago data center formerlybelonging to CNA Financial Corporation. Currently, there are five data centers owned and operated by BYTEGRID, covering a total of 700,000 square feet of available colocation space. The majority of the company’s facilities are available for leasing and they are actively pursuing the acquisition of additional data centers this year and into the future.