Net Access Corporation, a leading provider of data center and managed services in the New Jersey and New York City Metro markets, announced today that it has received a strategic investment led by Seaport Capital, a private equity firm focused on investments in the communications, information technology, and business services sectors.
Net Access, founded in 1995, provides enterprise-class data center collocation and managed hosting services from three locations in northern New Jersey, including their newest Tier IV center opened in 2011 in Parsippany.
"Our industry still has a huge amount of growth ahead of it", said CEO and Co-Founder Blake Ellman. "Alex and I are excited to partner with a well-respected firm like Seaport, which has been an active investor in companies like ours for more than a decade including Switch & Data and Peak 10. Net Access has ambitious plans in the coming years and I look forward to working with the Seaport team to achieve our goals". CTO and Co-Founder Alex Rubenstein said, "Seaport was one of the few investors that really understood the technology in our industry and was prepared to make the investments for long term growth."
Seaport Capital Partner Jim Collis said, "Net Access has a long history of providing flexible solutions and great customer service which has resulted in a very loyal and fast growing customer base. The Company's new state-of-the-art data center in Parsippany positions Net Access well for continued growth. Seaport has a long track record of successfully investing in businesses like Net Access. With nearly 100% of monthly revenues recurring from a large installed base of customers, the Company's profitability is predictable and has strong growth characteristics."
DH Capital, the Company's New York-based investment banking partner, advised Net Access on the investment and structured a transaction that allowed for Net Access' founders to remain actively running the business, while adding the financial resources needed to grow in the fast-paced collocation and managed hosting industry.
"Matching Net Access with Seaport Capital is a terrific outcome for the Company and its customers," said DH Capital Partner Adam Lewis. "Seaport's extensive understanding of the collocation and managed hosting market and previous investment experience in the sector will add tremendous value to Net Access as it capitalizes on the existing market opportunity for the Company's products and services."
About Net Access
Founded in 1995 as one of the first commercial Internet Service Providers in the Northeast, Net Access has grown to become a leader in providing enterprise data center services and complex hosting solutions. The state-of-the-art data center facilities, combined with a highly experienced management team and technical staff, allow Net Access to build and maintain a wide range of sophisticated and reliable solutions for their customers.
About Seaport Capital
Founded in 1997, Seaport Capital provides capital to middle market companies in the communications, information and business services sectors. Seaport works with talented management teams to create valuable companies that are leaders in their market segments. Seaport's substantial extensive investing experience enables it to develop winning strategies; its relationship and resources help achieve them. The firm seeks to invest $5 to $25 million of equity capital in each portfolio company.
About DH Capital
DH Capital is a private investment banking partnership serving companies in the Internet infrastructure, communications, and SaaS sectors. Headquartered in New York City with offices in Boulder, Colorado, the firm's principals have extensive experience and proven abilities in capital formation, finance, research, business development and operations. DH Capital provides a full range of advisory services to companies and financial institutions, including mergers and acquisitions, private capital placements, financial restructuring, and operational consulting. DH Capital has completed over 95 M&A transactions and private capital placements totaling more than $4.5 billion in value.