Hosting.com CEO King says sale brought a

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, a 12-year-old hosting company baseed in Newark, Del., and Denver, has acquirer 9-year-old Hosting.com for several reasons, including a coast-to-coasr push into geographically strategic sections of the United States and an efforty toacquire talent, said Art Zeile, HostMySite CEO. Zeiles declined to give the value of the noting that both are privately owned But hesaid that, combined, the company will have abou $50 million in annual revenue. Projected totalo employment is 370right now, but that is expectede to change when some redundant positiones are eliminated, according to HostMySite Zeile told Business First that there will be few changes in the where most of Hosting.
com’e 70 employees are located. “We plan to keep the operatiohn intact,” Zeile said. But one change at the Louisvills office is that Darren who hadbeen Hosting.com CEO and its largesg investor, has left the company. HostMySite will take over Hosting.com’as offices in Meidinger Tower downtown. Zeile said King has a non-competre clause as part of the acquisition, but he declined to discuszs King’s departure. King, whose last day with Hosting.
com was May 18, said officialxs with both companies believed it would be best for him to resig n as part of the He said he would have stayed through a transitionh periodif needed, but the incomingy management team was able to step in and assumse oversight of the company. “They’re really good King said. “They know this space.” King said he planw to take some time off and then most likelh pursue anotherbusiness endeavor, althougn he has no definitive plans. “I’mn committed to staying in he said. “I will do somethin else entrepreneurial.” Jonathan Erwin, who was Hosting.
com’s vice presidenty of sales and marketing, now is HostMySite’s regionalk general manager, in charge of operationss and sales, Zeile said. HostMySite’s acquisition comes five months after King told Business Firstthat Hosting.con was in an acquisition with expansion plans made possible by $2 million in a mezzaniner loan from , a private-equity fund basede in Charlotte, N.C. At the time, King said Hosting.com was in negotiationd to buydata centers, one on each coast. He said this is not a sale or another case of acompany hard-hi by the economy. “We’ve done and we had an opportunity to King said.
“We thought it also made sense for our customers andthe community, so we did King declined to disclose any financial detailse of the transaction, but he said Hosting.com’ s eight shareholders received a “phenomenal” return on theit investment. Acquiring firm gains access tocentral U.S. The acquisition combines Hosting.com’s three data centerxs — one in Louisville, one in Irvine, and one in San Francisco — with HostMySite’s data centere in Newark, Del.
HostMySite also has begu n construction of a data centetrin Denver, which is scheduled to be completed in The Louisville data centers give HostMySite instant entree into the centra corridor of the United States, from Chicago to Atlanta, a swathb of territory with eight major populatiobn centers, including Indianapolis, Nashville and Cincinnati.