Case Study

Ensuring customers' mission critical hosted applications are always on

Since closing the investment, HOSTING has achieved scale through a combination of smaller acquisitions, product development, and organic growth initiatives

Founded in 1997, HOSTING delivers next generation cloud hosting and recovery services to ensure customers’ mission critical applications are Always On. HOSTING’s geographically-dispersed datacenters and Cloud Supersites, coupled with the industry’s top networking and connectivity technologies, provide the highest levels of availability, security, and responsiveness. The most recognized names in SaaS, Healthcare, Retail, Financial Services, and Government repeatedly rely on HOSTING’s portfolio of dedicated hosting, managed cloud hosting, and colocation solutions to deliver the business continuity advantages they require.

The Pamlico Capital team first invested behind the founders of HOSTING in 1999 when they were looking for growth capital at Inflow, a colocation and managed services company in which Pamlico became the first institutional investor. In November 2007, Pamlico seeded an acquisition company with the goal of acquiring and building a leading managed hosting enterprise.

In June 2008, the acquisition of HostMySite, Inc., a leading hosting provider in Newark, DE, served as the initial platform investment for the company. In May 2009, the company acquired (HOSTING), continuing the company's development of a national platform for the delivery of colocation, cloud and dedicated hosting, and managed services. In addition, during 2009, HOSTING developed a greenfield datacenter in Denver, CO. In October 2011, the company acquired NeoSpire, which further expanded HOSTING’s geographic footprint and depth of service, including extensive security offerings. The Pamlico team partnered with management to finance and complete each of the acquisitions and expansions. 

Since closing the initial investment, HOSTING has demonstrated consistent annual organic revenue growth. The company has completed and integrated three acquisitions, and has expanded from one to six data centers across the U.S. HOSTING remains a current Pamlico investment, and we continue to be excited about working with management to help the company reach the next phase of its successful growth story.