Colohouse acquires Hivelocity to create next-generation service provider

Author: Isha Jain

Colohouse, a portfolio company of Valterra Partners and a player in the colocation, cloud, hosting and network services sector, has announced the successful acquisition of Hivelocity, a provider of bare metal hosting. This strategic move combines the portfolio of two well-established providers with a focus on cloud and bare metal services to meet growing market demand.

“Our acquisition of Hivelocity is a strategic move to enhance our capabilities and reinforce our commitment to delivering top-tier IT infrastructure services,” says Jeremy Pease, CEO at Colohouse. “Together, Colohouse and Hivelocity create a unique, next-generation provider that places the customer’s needs and success at the forefront, providing them with the connectivity and computing power required to deploy and manage modern applications and data.”

“Our mission at Hivelocity is to create a company with a singular focus on simplifying hosting with an exceptional customer experience. We have continuously excelled at our mission, grown our customer base and kept up with their demands, which led us from a single rack of servers to operating 40+ world-class data centres on six continents,” says Mike Architetto, CEO of Hivelocity. “Combined with Colohouse, Hivelocity can accelerate its capabilities and continue its legacy of simplifying IT for its customers.”

Key benefits of the acquisition: 

1. Full-service hybrid cloud product offering: The acquisition bolsters Colohouse’s infrastructure and existing hosting services with Hivelocity’s robust bare metal servers, network automation, and virtual private cloud solutions. Combined, the company can address the demand for a more comprehensive range of solutions for applications and data that require more computing power and connectivity options as customers seek to optimise cost, performance and security.
2. Automation and self-service capabilities across private infrastructure: As a next-generation service provider, the combined company will enable rapid deployment and scalability of private compute and connectivity resources across dozens of domestic and international locations. This platform enables and integrates modern capabilities including developer tools, APIs, and SDN.
3. Top tier talent helping customers succeed: The acquisition is founded on a shared commitment to focus on our customer’s needs and success. The most impactful solutions provide automation when wanted and expertise when needed. With decades of experience as a service provider, the combined teams are committed to exceptional customer service.

As businesses increasingly rely on advanced IT infrastructure to drive growth, the acquisition of Hivelocity by Colohouse sets the stage for the most comprehensive and mature suite of hosted infrastructure paired with expertise, resources, and innovation capabilities.

Kevin Reed, Managing Director of Valterra Partners, adds, “The combination of Colohouse and Hivelocity is the result of a multiyear strategy to acquire and develop a differentiated data centre and hybrid cloud provider that provides a platform of significant scale within a high growth market. The combined business provides a talented executive team, completes strategic offerings and expands capacities across a substantial geographic footprint that will support substantial growth.”

Houlihan Lokey served as financial advisor and Hogan Lovells served as legal advisor to Colohouse.

DH Capital served as financial advisor and Gunster served as legal advisor to Hivelocity.