Cloud Provider Total Server Solutions Raises $23M in Funding, Acquires ZeroLag Communications

Total Server Solutions, a cloud provider located in Atlanta, Georgia, has raised $23 million in equity and debt from Layer 7 Capital and J.P. Morgan Chase for acquisition finance and growth capital within the business. The target company in the transaction being ZeroLag Communications, a provider of optimized managed hosting solutions has now joined the Total Server Solutions family. 

“Our acquisition of ZeroLag expands our product suite, talent pool and provides a tremendous path forward to leverage both existing Total Server Solutions & ZeroLag customer bases,” said Gary Simat, CEO of Total Server Solutions. “Furthermore, alongside the company’s new financial partners comes increased scale, which enables TSS take on much larger, and more complex projects. This is only one of many large announcements that will be seen from TSS this year. We are coming.”

The acquisition of ZeroLag Communications – a company founded 17 years ago – not only adds a wide variety of new products and services to Total Server Solutions core infrastructure, but also allows Total Server Solutions to leverage coveted partnerships in emerging markets such as Dell, NTT, Veeam, Vmware, and Magento amongst several others. With the acquisition, Total Server Solutions gains a third Los Angeles, CA data center footprint, a backup facility in Austin, TX, and a DR site in Charlotte, NC. They also have now more than doubled their headcount in tech, sales, and development staff across the country.

Proactive Managed Services

For over 17 years, ZeroLag Communications has provided customers with superior hosting services featuring a unique combination of technical expertise and highly scalable solutions. ZeroLag has designed reference architectures for all the stacks Total Server Solutions supports ensuring the best possible performance, security, and scalability for Total Server Solutions customer’s environments.

The acquisition of ZeroLag not only adds a wide variety of new products and services to Total Server Solutions core infrastructure, but also allows Total Server Solutions to leverage coveted partnerships in emerging markets such as Dell, NTT, Veeam, Vmware, and Magento amongst several others. With the acquisition, Total Server Solutions gains a third Los Angeles, CA data center footprint, a backup facility in Austin, TX, and a DR site in Charlotte, NC. They also have now more than doubled their headcount in tech, sales, and development staff across the country.

“ZeroLag has been an innovator in the proactive managed services space for 17 years and through organic growth became a well-known player in the industry,” said Greg Strelzoff, founder and CEO of ZeroLag. “Total Server Solutions fills in critical gaps to the ZeroLag solution space, such as having compute facilities globally. There are incredible synergies between the two companies and together the two groups will have significant accretive forces on each other.”

Steve Lee of Layer 7 Capital, formerly of The Bank Street Group, served as financial advisor to Total Server Solutions. DLA Piper, a global law firm spanning more than 40 countries, was counsel to Total Server Solutions in connection with the transaction. DH Capital served as sell side advisor to ZeroLag Communications.

Furlow consulting