365 Data Centers Acquired by Stonecourt Capital

Oct. 6, 2020
Private equity firm Stonecourt Capital has acquired regional data center specialist 365 Data Centers, and says it intends to invest “significant additional capital” to accelerate the company’s growth.

Private equity firm Stonecourt Capital has acquired 365 Data Centers, which operates a network of regional data centers in the United States. CEO Bob DeSantis will continue in his post, while existing operators Lumerity Capital and Longboat Advisors will retain positions in the new partnership.

Chirisa Investments, Lumerity, and Longboat acquired 365 Data Centers in 2017. Turning Rock Partners joined the partnership in 2019 and provided additional financial backing for 365’s New Jersey and Long Island acquisitions. The company has since grown through acquisitions and now serves more than 650 customers from 12 facilities with 230,000 square feet of space and 22 megawatts of commissioned power.

Stonecourt Managing Partner Lance Hirt said the new owners intend to “deploy significant additional capital to accelerate the company’s growth trajectory.”

“We are already engaged on several near-term acquisition opportunities which will meaningfully enhance the company’s service offerings,” said Hirt. “This transaction represents an important milestone for the company as it recognizes the unrivaled achievements of the team to significantly scale and transform the business into a leading provider of hybrid data infrastructure services.”

365 Data Centers focuses on providing hybrid cloud services from small data centers in regional business markets. The company was founded in 2014 by investors who had previously operated 365 Main. The nucleus for the company was a group of data centers that were created by Switch and Data, and acquired from Equinix, which bought Switch & Data but was focused on larger markets. There has been some turnover in the provider’s footprint over the years.

365 has recently been in growth mode and now operates data centers in Boca Raton, Bridgewater, Buffalo, Chicago, Detroit, Fort Lauderdale, Indianapolis, Long Island, Nashville, Philadelphia, New York City and Tampa that serve as regional hubs for carriers. DeSantis has led the transformation from a strictly colocation business into a network-centric provider of hybrid data solutions.

“We are pleased to welcome Stonecourt as a partner in 365 Data Centers,” said DeSantis. “Stonecourt has a proven reputation of supporting growth businesses with financial and strategic resources, and we are excited to partner with them to foster the next phase of the company’s expansion. The 365 team will remain fully intact, and this partnership will enhance our ability to execute on our organic and acquisition growth strategies.”

DeSantis thanked outgoing investors Chirisa Investments and Turning Rock Partners, and outgoing board members Colm Piercy and Maggie Arvedlund. Bank Street Group served as exclusive financial advisor to both 365 Data Centers and Stonecourt Capital for the transaction.

About the Author

Rich Miller

I write about the places where the Internet lives, telling the story of data centers and the people who build them. I founded Data Center Knowledge, the data center industry's leading news site. Now I'm exploring the future of cloud computing at Data Center Frontier.

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