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Hosting.com Acquires Dallas-based NeoSpire

Company expands geographic footprint and depth of service – including extensive security offerings

Oct 10, 2011

Hosting.com, a leading provider of cloud hosting and recovery services, today announced the acquisition of Dallas-based NeoSpire, a mission-critical managed hosting company.

The acquisition both expands the physical footprint of Hosting.com and adds additional expertise to the company’s portfolio of services. With data centers in Dallas, Denver, Irvine CA, Louisville, Newark DE, and San Francisco, the company is well-positioned to offer expanded services to customers in the south with geographic diversity across the country.

“The synergistic relationship between NeoSpire’s managed hosting services, including managed security, application hosting, database administration, exchange hosting, SaaS hosting and colocation work well within the current and future direction of Hosting.com’s strategic plans,” stated Art Zeile, CEO of Hosting.com. “We’re excited to bring their current customers into our portfolio and leverage NeoSpire’s extensive security operations and expertise.”

"NeoSpire is excited about the opportunities this acquisition will provide for our customers," said Mitch Gervis, CEO and co-founder of NeoSpire. “We started NeoSpire with the vision of providing the best customer service in the managed hosting industry. Hosting.com shares this commitment and will also bring an expanded product line to enhance our current offerings.” Derek Wilson, chairman and co-founder of NeoSpire stated, “We have worked very hard to start and successfully build our business. This transaction with an industry leader creates a winning combination for our customers and the NeoSpire team."

NeoSpire was founded in 1999 by Mitch Gervis and Derek Wilson. The NeoSpire team operates a wide range of security services and best practices to provide the highest levels of protection for their customers. The company’s security operations center in Dallas delivers a high level of compliance and certification assistance to help companies with complex industry and government regulations.

NeoSpire customers will reap the benefits of Hosting.com’s rich heritage and technical leadership for availability and recovery services. Customers will have access to the entire suite of enterprise-class Hosting.com services, including the recently launched Cloud Replication solution that leverages VMware vCenter™ Site Recovery Manager 5 (SRM 5) to deliver enterprise-class offsite data protection and disaster recovery.

“In addition to the expanded service offerings that Hosting.com will bring to the NeoSpire customers, they will benefit from the highest level of service in the industry,” commented Joel Daly, Hosting.com COO. “They will also have access to our industry-leading online tools that enable self-management of their deployed services – all of which provide an excellent customer experience.” The company now has over 131,000 square feet of available colocation space in six geographically dispersed cities to deliver business solutions to customers from coast-to-coast. Hosting.com is backed by Pamlico Capital, a private equity firm founded in 1988 that invests in growing middle market companies. “Pamlico continues to be a great partner and valuable asset for Hosting.com. Pamlico has been instrumental in advancing Hosting.com’s strategy and supporting the company with acquisitions, datacenter expansions, and investment in cloud hosting and recovery services,” stated Art Zeile.

Hosting.com was advised by Alston and Bird LLP, Ernst and Young LLP, W. David Snead, EKS&H, and Moreton & Company.

DH Capital, LLC served as exclusive financial advisor to NeoSpire on the transaction. Patton Boggs, LLP acted as legal counsel to NeoSpire in connection with this transaction.

Kevin J. Thomas
Senior Director of Marketing
+1 (720) 389-3852
kthomas@hosting.com

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About Pamlico

Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: digital infrastructure, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of over $3.5 billion. For additional information, please visit www.pamlicocapital.com.