Wednesday, September 10, 2014

365 Data Centers Pulls in Funding for Expansion

365 Data Centers announced $16 million in Series B funding and a $55 million credit facility for the expansion of its co-location business.

The announcement comes a few months after 365 Data Centers announced a new management team, corporate identity and 365 Quick Start, which makes data centers more accessible.  The company cityes triple-digit percentage YOY sales growth and broken its all-time quarterly sales record by over 20 percent.

The new funding came from existing investors Crosslink Capital and Housatonic Partners.  The credit facility came from Fortress Credit Corp., an affiliate of Fortress Investment Group.

"365 Data Centers brings greater flexibility and accessibility to clients through solutions that simplify colocation services to bring them more in line with cloud consumption models. This new financing allows us to continue executing on our growth strategy, whether organically or by acquisition," said John Scanlon, CEO, 365 Data Centers. "We've put together an experienced management team, created a strong growth plan, and delivered great results in a matter of months. We have the faith and support of capital markets behind us, and when talent meets capital, good things happen."

In April, 365 DataCenters, which was previously known as 365 Main, announced a corporate rebranding as it focuses on colocation services for small and medium enterprises.  The company operates in sixteen markets across the U.S.

In this video interview, John Scanlon looks at the colocation opportunity with small to medium-sized businesses especially as they make the transition from on-premise infrastructure to hybrid cloud solutions. The company's goal is to make data centers more accessible to small customers by eliminating long-term commitments.