INetU-BV Initiative Extends Managed Hosting Footprint
INetU-BV Initiative Extends Managed Hosting Footprint by UCStrategies Staff
A recapitalization initiative has been completed by INetU, a managed service provider, and BV Investment Partners, a private equity firm dealing in mid-market products and services. The finances regarding the investment have not been disclosed, but the outcome shows that BV is the majority shareholder at INetU and will aid the latter in its expansion of operations.
The vice president of sales and marketing at INetU, David Van Allen, stated: “This has been a profitable managed hosting company for well over a decade. We have experienced solid growth, despite the fact that we've done it by ourselves. We are one of those classic bootstrap companies that have always had a great customer list with low churn. But, it became clear that if we wanted to compete on a larger scale, additional funding would be necessary. So the investment from BV is going to enable that.”
Cloud-centric services for small to medium-size enterprises are specialized in by INetU, and particular attention is given to technology and its Internet web presence. Van Allen states that e-commerce, PCI, DSS, financial services, government and education, healthcare and any other sector regulated by HIPAA, HITECH and Sarbanes-Oxley are compliances which are largely focused on.
Van Allen adds: “We are going to use this funding to accelerate our normal growth plans and to have more points of presence. We are going to start off with a new Seattle, Washington, location early this year, which will supplement our existing data centers in Ashburn, Virginia, and Amsterdam in the Netherlands. We're also going to continue to expand our cloud-based security offerings. Those are the two main areas of focus for 2013.”
He continued: “There is a bifurcation among managed service providers. One is a transactional path that focuses on trading capex for an opex and leverages the financial efficiencies of the cloud. That certainly is a high-growth area in our industry. But, the other path focuses on a strategy where the managed service provider assists the customer not just with the technology but also on how that technology can be leveraged towards higher business opportunities. That is where we excel. It is a great ROI story for our clients, as evidenced by our very low churn rate and our longevity in business.”
Since 1983, BV has invested over $2.6 billion in 80 companies, and this recent move is the company's eighth private equity fund investment. It is mostly information, business services and communications industries which have been invested in. (CY) Link