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Colohouse Acquires Hivelocity: News and Analysis

HiVelocityThere are big moves being made in the hosting industry and the latest is the acquisition of Hivelocity by Colohouse.

According to the announcement:

Colohouse, a portfolio company of Valterra Partners and a leading player in the colocation, cloud, hosting, and network services sector, has announced the successful acquisition of Hivelocity, the leading provider of bare metal hosting. This strategic move combines the portfolio of two well-established providers with a focus on cloud and bare metal services to meet growing market demand.

“Our acquisition of Hivelocity is a strategic move to enhance our capabilities and reinforce our commitment to delivering top-tier IT infrastructure services,” said Jeremy Pease, CEO at Colohouse. “Together, Colohouse and Hivelocity create a unique, next-generation provider that places the customer’s needs and success at the forefront, providing them with the connectivity and computing power required to deploy and manage modern applications and data.”

Hivelocity is a LowEndTalk Patron Provider and hopefully that relationship will continue post-acquisition and they’ll keep bringing us great deals.

Besides adding scale, Colohouse intends to expand Hivelocity’s auto-provisioning and self-service capabilities.

Longtime readers might recognize some other assets of Valterra besides Colohouse.  They also own Turnkey Internet and Data102.  Overall, Valterra has over $200 million in assets under management.  Their strategy is to buy midsize firms.  From their website:

Valterra’s target investment size is $25-100mm. For each investment, Valterra takes a flexible approach to investing, working hand-in-hand with existing stakeholders to develop a mutually agreeable investment structure. While our investments can be structured as either majority or minority positions, Valterra always takes an active role in managing its positions through a hands-on governance approach.

No word yet if the Hivelocity brand will disappear, but my completely uninformed speculation is that it will probably be merged into the Colohouse brand.  My outsider view is that Hivelocity is being bought to given Colohouse greater scale, rather than as a valuable standalone brand.  Time will tell.


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