Data Center Finance: SingleHop Acquires Datagram

Cloud services provider SingleHop announced in late May that it had acquired Datagram, a firm specializing in IT infrastructure management. The deal allows SingleHop to more rapidly grow its presence in the U.S. hosted private cloud market.

SingleHop operates data centers across the U.S. and Europe, serving 5,000 customers in more than 120 countries. Datagram provides hosted private cloud services, based mostly on VMware platforms, as well as disaster recovery and colocation solutions. The company operates out of five facilities in the U.S. and Europe, operating a New York data center, Chicago data center, Connecticut data center, Phoenix data center and Amsterdam data center, as well as maintaining points of presence in New Jersey and California. The purchase offers SingleHop a way to expand its footprint in the Northeast market while also capitalizing on Datagram's popularity and reputation in the area.

"Datagram and SingleHop share the same vision of making best-of-breed technology easy to deploy and use for enterprise customers," said Zak Boca, chief executive of SingleHop. "The acquisition comes at a time when many enterprises, especially those in the media and entertainment space, are looking for ways to reduce their capital costs, increase their agility and offload routine IT functions to providers. As we move forward, SingleHop is actively considering additional acquisitions that add strategic, accretive benefits to our long term mission of providing the most complete suite of managed hosting and private cloud solutions."

Consolidation offers greater opportunity for service
Alex Reppen, chief executive of Datagram said that organizations have become increasingly interested in solutions that allow them to store and manage their growing volumes of data without spending a fortune. The combination of SingleHop's size and Datagram's customer base allows the two companies to offer a higher degree of management and control over data at a time when workloads management can become overwhelming for most businesses.

Financial terms of the deal have not been released, but SingleHop has confirmed that Datagram will operate as an independent business unit within the company once the purchase is completed. The acquisition of Datagram comes quickly on the heels of Singlehop's purchase of Server Intellect, another infrastructure specialist that provides the company with strong knowledge of Microsoft legacy server and cloud technology.

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