365 Data Centers today announced its acquisition of Atlantic Metro Communications, which provides colocation, network, and cloud services to large and mid-size enterprises. The acquisition of Atlantic Metro adds one data center facility, representing 1 megawatt of power capacity and 12k sqft in Herndon, Virginia. Additionally, Atlantic Metro brings partner operated colocation space and available power in Northern Virginia and Los Angeles.
Atlantic Metro gives 365 Data Centers 65 additional network points-of-presence (PoPs). Specifically, these PoPs are in the Boston, New York, New Jersey, Philadelphia, and Virginia metro markets and several international locations. Furthermore, the deal also contributes cloud platforms in New York, New Jersey, Virginia, Miami, and Los Angeles.
365 Data Centers – Overview
Following the acquisition of Atlantic Metro, 365 Data Centers now operates 13 data centers, representing 23 megawatts of power capacity and 242k sqft. Additionally, the company serves more than 1.3k customers, up from 650 customers pre-acquisition, across its 13, primarily edge, markets.
365 Data Centers has network-centric facilities in Boca Raton, Bridgewater (New Jersey), Buffalo, Chicago, Commack (Long Island), Detroit, Fort Lauderdale, Herndon (Virginia), Indianapolis, Nashville, Philadelphia, New York City, and Tampa. Also, the company has 5 additional partner operated facilities. Overall, 365 Data Centers can serve customers from 86 PoPs and 7 cloud platform locations.
Management Team of Atlantic Metro
As part of the transaction, Atlantic Metro founders and key leaders will join the 365 Data Centers executive team. Firstly, Stephen Klenert has been named 365’s Senior Vice President, Customer Solutions & Implementation. Secondly, James Cornman becomes 365’s Chief Technology Officer. Thirdly, Steve Oakie joins 365 as Senior Vice President, Sales & Marketing.
Transaction Advisors and Financing
Atlantic Metro’s financial advisor was Q Advisors, and legal advisor was Ferdinand IP. 365 Data Centers’ legal advisors were Shipman & Goodwin and Polsinelli PC.
Cerberus Business Finance, Everberg Capital, and ORIX Corporation USA’s Special Opportunities Group provided financing for the transaction.
Stonecourt Capital Acquires 365 Data Centers
In October 2020, 365 Data Centers announced that Stonecourt Capital acquired a majority stake in the company. Indeed, original investors Lumerity Capital and Longboat Advisors re-invested into the new partnership. Whereas Chirisa Investments and Turning Rock Partners exited the investment.
Stonecourt Capital is a private equity firm which has invested over $4bn of equity capital. Specifically, Stonecourt Capital’s investment provided 365 with the financial resources to fund the equity portion of the Atlantic Metro acquisition.