Brexit fails to halt data centre investments as operators enter a new phase of business evolution beyond pure colocation offerings.
Investment firm Palatine Private Equity has invested in UK-based data centre provider The Bunker, in what is the PE companys fifth deal out of Palatines third fund.
The Bunker was founded in 1994 and offers services around cloud, colocation and hosting. The operator has also over the years built a knowledge around fintech and the wider financial services sectors.
It has two data centres in England, one in Ash, Kent, and the other in Newbury. Each data centre has a power capacity of just below 2.5MW, however, the sites have the capacity to be expanded by several MWs.
Palatine said in a statement that the current levels of sales activity within the business show a rate of growth that will continue with the company set to benefit from market headwinds such as GDPR and an ever-greater demand for cyber security services.
In parallel to the new investment and in conjunction with long term business succession planning both Peregrine Newton (CEO) and Andy Theodorou (COO), both co-founders of the business, have decided to step aside.
Consulting director Andy Hague has been named as the new Group CEO, whilst Phil Bindley (CTO) has been promoted into the role of Managing Director with the rest of the Senior Management Team remaining in their current roles.
Palatine was advised by BDO, Gateley Plc and RSM with due diligence provided by CIL, Marsh and The Berkeley Partnership. Debt facilities were provided by European Capital and Santander.
Speaking to Data Economy, BDOs head of TMT M&A, Robin Brown, said: When you talk to a lot of British or European [data centre providers] as well as small data centre operators they are unsure at the moment about what they should be doing with their businesses.
Should they be focusing on just filling up their sites and getting a return from a colocation base; should they be moving into managed services; should they be moving to cybersecurity services; should they be buying or building more small data centres to have a regional play?
What this investment by Palatine private equity into The Bunker is showing, is that there is investor support for data centres to invest in more advanced managed services and cybersecurity capabilities. Their proposition is offering a technical solution to customers that is greater than just colocation.
The Bunker is designed to be ultra-secure and what they have done over the year is migrate the business from being just colocation services into managed hosting, disaster recovery, network services and dedicated cloud services. Part of the strategy of the business is to further move into cybersecurity services over time.
With The Bunker based in the UK, uncertainty around Brexit failed to hinder any negotiations, with Brown playing down questions around private equity investors fears.
He said: One of the interesting implications of some of the UK private equity funds is that the basis underpinning their investment in their funds is that their businesses are UK registered.
Quite often when they make an investment in Europe it is still being done by a UK registered business. They will set up, even if it is a shell company or a small acquisition, that is still run from the UK, whether over the longer term, you see more and more private equity funds being less constrained by the requirements of a UK registered business is a question that is open, it does not have an answer yet.
The Brexit effect has not been brought up as a significant impact on why they would or would not invest in the UK.
Looking ahead, and with investors showing more interest in the data centre market beyond pure-play colocation, Brown also said the investment carried out by Palatine could spark a wave of private equity investments.
The private equity I am talking to at the moment are specifically interested in investing in data centres that have made the migration towards managed services, he said.
Small data centres that are continuing to just do colocation are less attractive. Data centres that are moving into fields like cybersecurity, are worth more to an investor and an investor understands how they can make further acquisitions to grow the business and not be constrained by the footprint of the data centre itself.
If they have services that are provided to clients that are in the data centre, they can then add additional services that they then can provide to those clients that do not rely solely on the data centre footprint. One example would be GDPR consulting services.
- Cloud Hosting by Perry Hosting - December 11th, 2017
- What Is Cloud Hosting? | GoDaddy - YouTube - December 11th, 2017
- Linux VPS | Best Managed Linux Cloud Hosting - RoseHosting - November 24th, 2017
- Cloud hosting platforms. Part one: Pantheon | ADCI Solutions - November 24th, 2017
- Get to know Linode, the new (big) kid in town - Technical.ly - September 7th, 2017
- 500 Cloud Operators, Managed Service Companies and Hosters to Gather at the 13th Annual Hosting & Cloud ... - Benzinga - September 7th, 2017
- Cloud ERP: The rising alternative to hosting your own - Networks Asia - September 7th, 2017
- Melbourne Server Hosting Renamed to iomart - Web Host Industry Review - September 6th, 2017
- Cloud ERP: The rising alternative to hosting your own - CIO Australia - September 6th, 2017
- Dean Dorton Technology named to Sage Intacct President's Club, Rookie of the Year and New Partner of the Second ... - The Lane Report - September 6th, 2017
- Microsoft Signs Deal to Put More Apps on Huawei's Cloud in China - eWeek - September 6th, 2017
- Cloud Hosting Providers CommsTrader's UK Channel Guide 2017 - CommsTrader - September 5th, 2017
- Huawei announces Microsoft cloud apps partnership - ZDNet - September 5th, 2017
- Trump Effect Could Cost US Cloud Providers Over $10 Billion: Report - Web Host Industry Review - September 2nd, 2017
- Cost Reduction Strategies on Java Cloud Hosting Services - InfoQ.com - August 30th, 2017
- Cloud Native The Perfect Storm for Managed SD-WAN Services - Network World - August 30th, 2017
- Why 2017 is the Year to Understand Cloud Computing - Business 2 Community - August 28th, 2017
- President Trump Could Cost US Cloud Computing Providers More Than $10 billion by 2020 - The Data Center Journal - August 28th, 2017
- What You NEED To Look For In A Cloud Hosting SLA - TG Daily (blog) - August 27th, 2017
- President Trump Could Cost US Cloud Computing Providers More ... - The Data Center Journal - August 27th, 2017
- State of Cloud - 2017 - Read IT Quik - August 22nd, 2017
- President Trump could cost US cloud computing providers more than $10 billion by 2020 - Bdaily - August 22nd, 2017
- Microsoft No Longer a PC Company with Deals Like Halliburton, Says Credit Suisse - Barron's - August 22nd, 2017
- Did Snap Make a Mistake With Its $3 Billion in Cloud Contracts? - Madison.com - August 21st, 2017
- Right Networks continues focus on tech improvement with new CIO - Accounting Today - August 21st, 2017
- Altinity Provides Cloud Version of ClickHouse on Kodiak Data MemCloud - Markets Insider - August 21st, 2017
- NASA calls on cloud for online eclipse streaming - GCN.com - August 21st, 2017
- Cloud Hosting Reviews and Comparisons | Cloud Hosting Directory - August 19th, 2017
- Free cloud hosting: comparing the top providers offer - August 19th, 2017
- Microsoft Expands HPC Cloud Portfolio With Cycle Computing Acquisition - eWeek - August 19th, 2017
- UC San Diego Health: Moving Its EHR to the Cloud, Strategically - Healthcare Informatics - August 19th, 2017
- Rackspace's first in-house attorney for international moves on - San Antonio Business Journal - August 19th, 2017
- Microsoft Acquires Cycle Computing to Bulk Up its HPC Cloud Services - eWeek - August 18th, 2017
- Massive Potential Attracts International Players to Iran's Cloud Computing Market, Despite Challenges - PR Newswire (press release) - August 18th, 2017
- These Inventors Need To Conquer Cryptocurrency To Change Cloud Computing - Celebrity Net Worth - August 18th, 2017
- 360 Cloud Solutions now offers Adaptive Insights - Accounting Today - August 18th, 2017
- Hackers breach third party cloud vendor TekLinks - Healthcare IT News - August 18th, 2017
- Stronger security and disaster planning fuel healthcare's migration to the cloud - Healthcare IT News - August 16th, 2017
- Hackers hit dermatology practice through cloud vendor - Information Management - August 16th, 2017
- Hackers hit dermatology practice through cloud vendor - Health Data Management - August 15th, 2017
- Unisecure Hybrid Cloud Hosting Introduces New Integration And Collaboration Support. - HostReview.com (press release) - August 14th, 2017
- CenterGrid Names Kevin Westendorf As Chief Technology Officer - Markets Insider - August 14th, 2017
- Earth911.com - Earth911.com - August 14th, 2017
- Commerce Department Plans to Move Cybersecurity to the Cloud - FedTech Magazine - August 13th, 2017
- Snap CEO Evan Spiegel Makes A Case For Slow User Growth - Fortune - August 11th, 2017
- RiverMeadow and WSM Announce Agreement to Facilitate Cloud Migrations - GlobeNewswire (press release) - August 11th, 2017
- Driving operational excellence with your cloud vendors - Network World - August 10th, 2017
- Amazon jumps on Kubernetes bandwagon - ZDNet - August 10th, 2017
- Epic Move: UC San Diego Health Transitions to Cloud Technology - UC San Diego Health - August 10th, 2017
- St. Cloud to Host Summer Sizzler Downtown Art Crawl - WJON News - August 10th, 2017
- Cloud management platforms offer a unified approach to hybrid IT - TechTarget - August 10th, 2017
- CA Health System Begins Cloud-Based Epic EHR Implementation - EHRIntelligence.com - August 10th, 2017
- Home Office seeks partner for AWS switch after current hosting ... - www.channelweb.co.uk - August 9th, 2017
- Planning Your Journey to the Cloud - TV Technology - August 9th, 2017
- Marias Technology adds Microsoft Azure to its Hosting Services - GlobeNewswire (press release) - August 9th, 2017
- IBM CIO leaves for AWS and Big Blue flings sueball to stop him - The Register - August 9th, 2017
- How To Win at Cloud Hosting in a Microsoft-AWS-Google World - Redmond Channel Partner - August 8th, 2017
- Epic Move: UC San Diego Health Transitions to Cloud Technology - Newswise (press release) - August 8th, 2017
- Global Health wins contract to deploy cloud system at Sydney hospital - Proactive Investors Australia - August 8th, 2017
- As Tech Execs Rally Around Kushner, Government Cloud Adoption Still Has Ways to Go - Windows IT Pro - August 8th, 2017
- Heavy clouds in IT world make it rain gold for UPS box manufacturers - The Register - August 8th, 2017
- Project Manager - Amazon, Google, Microsoft Cloud Hosting - Dorking and Leatherhead Advertiser - August 6th, 2017
- From Public Cloud to Hybrid IT Straight From the Horse's Mouth - InfoWorld - August 6th, 2017
- How companies can boost their website in China's clouded market - Cloud Tech - August 4th, 2017
- Cloud computing facility launched - Times of India - August 4th, 2017
- Aerohive Achieves Unmatched Scale and Flexibility in Cloud-Managed Networking - Patch.com - August 4th, 2017
- Marijuana startup Lemonhaze leverages Bizspark to jump from AWS to Azure - OnMSFT (blog) - August 3rd, 2017
- US retailers increasingly switching to public cloud hosting to free up resources to develop new services - InternetRetailing.net - August 2nd, 2017
- Mozilla's Send is basically the Snapchat of file sharing - The Verge - August 2nd, 2017
- Why Facebook Is Withdrawing WhatsApp from the IBM Cloud - Market Realist - August 2nd, 2017
- You need a cloud exit plan, even for AWS, Google, Microsoft, or IBM ... - InfoWorld - August 2nd, 2017
- Cloud Hosting - Cloud Web Hosting Services - Bluehost - August 1st, 2017
- CCS points users of major expiring frameworks towards G-Cloud - PublicTechnology.net - August 1st, 2017
- Secure Cloud Storage Service India Benefits All Types Of Businesses - HostReview.com (press release) (blog) - July 31st, 2017
- Cyber Extortion: Is Your Business Software At Risk? - Techzone360 - July 31st, 2017
- Microsoft's data centre investment to boost SA cloud adoption - IT News Africa - July 12th, 2017
- BT Named A Leader In 2017 Magic Quadrant For Managed Hybrid Cloud Hosting, Europe - BT Retains Its Position As ... - Exchange News Direct - July 11th, 2017
- In Illinois, cloud computing debate could open next chapter of utility rate reform - Utility Dive - July 11th, 2017
- Atlantic Metro Expands CloudDirect(SM) Suite Nationwide - Marketwired (press release) - July 11th, 2017
- Microsoft Launches Azure Local Cloud Solution - CFO - July 11th, 2017