Eric Cooney, Internap: Voxel Bought for $30M

January 6, 2012

Internap Network Services has acquired Voxel Holdings, a provider of scalable hosting and cloud services for the enterprise, in an all cash transaction valued at approximately $30 million, plus an additional potential $5 million in cash tied to the delivery of specific objectives during the next two years. The transaction was closed on Friday, December 30, 2011. Headquartered in New York City, with a global presence extending into North America, Europe and Asia, Voxel serves more than 1,000 customers and has approximately 50 employees.

The combination significantly enhances Internap’s flexible IT Infrastructure platform with the addition of Voxel’s dedicated hosting and cloud products. Voxel’s offerings are highly complementary to Internap’s existing portfolio and provide a level of automation and self-service that will be available immediately to Internap’s customer base. Voxel also extends Internap’s addressable market, enabling the company to serve early- to mid-stage IT Infrastructure customers seeking dedicated hosting services, a high-growth market currently estimated by Tier1 Research to reach approximately $3 billion in 2012.

“As IT Infrastructure outsourcing advances, enterprises increasingly seek service providers to support myriad applications and workloads throughout their entire IT lifecycle,” said Eric Cooney, president and chief executive officer of Internap. “This acquisition of Voxel increases Internap’s market share and growth rate, accelerates our product roadmap and creates an unmatched competitive position as an IT Infrastructure services provider.”

Voxel provides on-demand dedicated hosting and cloud services to enterprises and web-centric businesses. Founded in 1999, with strong roots in software development, Voxel has leveraged deep industry expertise, modular components and intelligent automation to overcome the complexities of both dedicated and cloud environments and provide highly agile infrastructure management solutions. Its dedicated hosting offering provides customers with a robust online interface and comprehensive API that enables them to provision and activate services in minutes, gaining cloud-like flexibility from dedicated physical servers. Moreover, customers can also seamlessly integrate physical servers and cloud instances in the same environment, overcoming a typical barrier to enterprise cloud adoption for use with legacy or complex custom application stacks.

By adding Voxel’s service locations in Amsterdam and Singapore to Internap’s existing service locations, the combined company will offer a truly global platform of colocation, managed hosting, dedicated hosting and cloud services. Additionally, Voxel’s automation technologies and expertise will be leveraged to enhance the existing Internap product set.

“We are excited to be joining Internap, a company that shares our commitment to developing innovative IT Infrastructure solutions to drive the next generation of Internet and cloud applications,” said Raul K. Martynek, president and chief executive officer of Voxel. “The combination of Internap’s broad market presence and robust, high-performance IT Infrastructure platform with our expertise in automated hosting and cloud services will deliver a powerful option for a broad range of enterprise customers.”

Voxel was backed by Seaport Capital in New York. DH Capital served as financial advisor for Voxel.