Cloud hosting company SingleHop LLC has announced its second purchase in two months. The Chicago-based company acquired Datagram, a provider of dedicated hosting, Internet access and disaster recovery.
The transaction was announced on the heels of SingleHop's acquisition of Orlando, Florida-based Hosting Intellect LLC in March. Both deals continue SingleHop’s momentum.
Datagram allows SingleHop to extend its footprint further in the hosting and general cloud marketplace. The New York-based target has been in operation for roughly 20 years and has facilities in Connecticut, New Jersey and California.
In December, SingleHop opened its own $30 million data center in Chicago and has since been using the $72.3 million in venture capital it raised to expand via M&A. For example, by picking up Hosting Intellect - which does business as Server Intellect - SingleHop was able to build expertise in Microsoft's Hyper-V cloud technology, which climbed to a 30 percent share of the market at the end of 2014.
Prior to that, SingleHop had a strong position in the private cloud arena through its VMware Inc.-based services.
Backed by Battery Ventures and Digital Realty Trust, SingleHop has amassed 5,000 customers across 124 countries with data centers scattered between the U.S. and Europe. The company's growth comes at a time when private equity firms and strategic buyers alike are scooping up cloud technology providers.
Firms including HGGC, ParkerGale, Thoma Bravo and Vista Equity are just a few of the private equity firms that have had a head start and have become known to seek out cloud tech specialists. For more, see Thoma Bravo & Others Bet Big on the Cloud.