Hosting Provider Hostway Acquired By Connecticut-based Private Equity Firm

hostwayHostway, provider of Infrastructure-as-a-Service (IaaS) and cloud hosting solutions, has been acquired by Littlejohn & Co., LLC, a private equity firm based in Greenwich, Connecticut. Littlejohn will serve as an active shareholder and board of directors in support of the company’s plan to accelerate further growth.

Hostway provides cloud, hybrid and managed hosting solutions to over 500,000 small and medium-size businesses and enterprise customers. The company services its clients from more than 250,000 square feet of state-of-the-art data center space, spanning four continents and 12 countries. Details of the transaction were not disclosed.

Selectively making acquisitions

“Tremendous demand for traditional outsourced IT solutions and emerging demand for Software- and Platform-as-a-Service is fueling the growth of the hosting industry,” said Michael Kaplan, Managing Director of Littlejohn & Co. “Hostway serves as a great platform to capitalize on this opportunity due to its unique hosting platform, world class customer service and robust data center infrastructure. We look forward to working with Hostway’s management to accelerate growth by continued investment in Hostway’s technology platform, enhancing its sales and marketing efforts and selectively making acquisitions targeted at enhancing the customer experience.”

John Martis, President of Hostway, said, “We are extremely pleased to partner with Littlejohn and gain access to additional resources to help us grow our managed, cloud and web hosting businesses. The Littlejohn Team has deep experience growing businesses across a variety of industries and can help us further differentiate our offerings and build on our customer base.”

Cowen and Company, LLC acted as exclusive financial advisor to Littlejohn on the transaction, whereas DH Capital, LLC acted as exclusive financial advisor to hosting provider Hostway.