French Hosting Provider OVH Plans to Accelerate its Global Cloud Expansion, Raises $327M

Bit Ninja

The French company OVH, one of the largest hosting providers in the world, has announced a new fundraising of 327 million dollars. The sustained growth of OVH since its establishment in 1999, along with the group’s development strategy, have convinced institutional investors and banks to accompany the group in its new international expansion phase with a strong focus on cloud.

The new fundraising is the result of mixed funding consisting of a new syndicated loan with OVH’s historical bank pool and a private bond (Euro PP). Institutions of the bank pool pledged a line of 196 million in revolving credit facility (RCF), maturing in 6 years. Euro PP bond investors have committed to 131 million dollars over 6, 7 and 8 years.

The $327 million in funds will allow the group to further enhance its investments in cloud hosting and allow for major worldwide development.

cloud-servers-ovh“The goal is to provide the means to become a key player in the global cloud, able to compete with the big American companies,” said Nicolas Boyer, CFO of OVH. “This allows us to diversify our funding sources and extend the average maturity of our debt, assuring the next three years of development. This will also finance an investment program of more than 490 million dollars (the rest is self-funded), while retaining the current structure of the company’s capital. We can then intensify the deployment of our data center and network infrastructures, supporting our customers in the cloud while capturing new markets.”

Through its brands, OVH.com, So you start, RunAbove, and hubiC, the OVH Group offers hosting solutions to about 700,0000 customers worldwide. The company operates 17 data centers and has 170,000 physical servers under management.