Terremark Acquires Leading Data Storage Company
Acquisition of DS3 DataVaulting Enhances Company’s Remote Data Storage, Backup Offering
MIAMI--(BUSINESS WIRE)--Terremark Worldwide, Inc. (NASDAQ:TMRK), a leading global provider of managed IT infrastructure services, today announced that it has acquired DS3 DataVaulting, a leading data management solutions company, for a purchase price of $11.5 million in cash. Founded in 2002, Fairfax, VA based DS3 provides customers with offsite, online data backup and restore services which enable enterprises and government agencies to rapidly and securely backup and restore files, databases and operating systems.
“Acquiring DS3 enhances our overall data storage offering and helps us accelerate the development of our solutions in the area of managed storage, which is a key growth opportunity driven by the escalating data demands created by new technologies and increasingly stringent regulatory compliance,” said Marvin Wheeler, Terremark’s Chief Strategy Officer. “Combining DS3’s innovative backup and restore offerings with our existing suite of services and top-tier, highly connected facilities significantly adds to the value that our data storage solutions provide to enterprises and Federal government agencies. We also expect to realize cost synergies by relocating DS3’s infrastructure to our world-class data centers and eliminating the need to outsource some of our data storage services.”
By offering a cost-effective, efficient and flexible managed storage solution, DS3 represents an ideal strategic fit with Terremark’s complete set of managed IT infrastructure services. With a large list of enterprise and government customers, including the National Oceanic and Atmospheric Administration, the addition of DS3 also provides Terremark with a considerable opportunity to up sell its full suite of services to a new customer base. DS3’s ability to provide innovative solutions to this strong group of customers has helped it generate an annualized run rate of $6 million in revenues and $1.5 million in EBITDA.
“By adding our talented team of professionals and their strong industry relationships to a company that shares our commitment to quality customer service, we believe that we will maximize the impact our solutions can have,” said Stacy Hayes, President of DS3. “We’re excited to join the Terremark family and offer Terremark’s existing and prospective customers a superior option for their data backup and storage needs.”
DS3 provides local and remote business continuity services, coupled with innovative backup archive tiers and data discovery capabilities. The company was recently selected as an Asigra 3D Hybrid Partner, which underscores DS3’s commitment to delivering scalable backup and restore solutions that minimize customer costs.
About Terremark Worldwide, Inc.
Terremark Worldwide (NASDAQ:TMRK) is a leading global provider of IT infrastructure services delivered on the industry’s most robust and advanced technology platform. Leveraging data centers in the United States, Europe and Latin America with access to massive and diverse network connectivity, Terremark delivers government and enterprise customers a comprehensive suite of managed solutions including managed hosting, colocation, disaster recovery, security, data storage and cloud computing services. Terremark’s Enterprise Cloud computing architecture delivers the agility, scale and economic benefits of cloud computing to mission-critical enterprise and Web 2.0 applications and its DigitalOps® service platform combines end-to-end systems management workflow with a comprehensive customer portal. More information about Terremark Worldwide can be found at http://www.terremark.com.
Statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Terremark's actual results may differ materially from those set forth in the forward-looking statements due to a number of risks, ability to cross-sell across an acquired customer base, ability to increase revenue yields within facilities, ability to refinance existing debt, uncertainties and other factors, as discussed in Terremark's filings with the SEC. These factors include, without limitation, Terremark's ability to obtain funding for its business plans, uncertainty in the demand for Terremark's services or products and Terremark's ability to manage its growth, the successful integration of operations of acquired companies. Terremark does not assume any obligation to update these forward-looking statements.