|[October 28, 2013]
NTT Com to Acquire 80% Stake in RagingWire Data Centers
TOKYO & SACRAMENTO, Calif. --(Business Wire)--
NTT Communications (News - Alert) Corporation (NTT Com), the ICT solutions and
international communications business within NTT (NYSE:NTT), and
RagingWire Data Centers (RagingWire), a leading provider of data center
services in the United States, jointly announced that NTT Com will
acquire approximately 80% equity interest in RagingWire for $350 million
(USD). The acquisition follows a definitive agreement reached with
RagingWire shareholders. RagingWire has annual revenues of approximately
$85 million (USD), and a compounded annual growth rate of 30%.
RagingWire's founders and management team will continue to operate the
company as a platform under the RagingWire brand and maintain a minority
interest in the company.
The acquisition will more than double NTT Com's data center space in the
US which will enable the company to respond to high demand for data
center services in North America. NTT Com will also deploy RagingWire's
know-how and patented technologies for the design and operation of
highly dependable, scalable and sophisticated data centers.
"We are rapidly expanding our capabilities to provide cloud and
telecommunications solutions worldwide and the deal with RagingWire is
critical to increasing our overall capacity, providing data center
infrastructure management tools which enhance our colocation service's
reliability and efficiency. RagingWire leads the data center industry in
availability, innovation, and customer experience, and will enhance our
global cloud solutions significantly," said Akira Arima, CEO of NTT Com.
RagingWire was founded in the year 2000 and has approximately 300
employees. The company has 650,000 square feet of data center space at
its campuses in Sacramento, California, and Ashburn, Virginia. Both
campuses are currently being expanded. In addition, RagingWire has begun
construction of a new 150,000-square-foot data center in Sacramento, and
will soon break ground on a 78-acre parcel of land in Ashburn, Virginia
with designs to build 1,500,000 square feet of data center space. The
company was recently recognized for having the highest customer loyalty
in the industry as measured by the Net Promoter Score® and
has over 200 Intrnet and enterprise customers including such notable
names as Flextronics (News - Alert), Polycom and NVIDIA.
In 2012, RagingWire was awarded two patents for data center power
delivery systems and technology. These patented technologies include the
2N+2TM design, which offers double the redundancy of a
standard data center design at a lower cost. The unique infrastructure,
design and operations of 2N+2 has enabled RagingWire to deliver customer
SLAs (service level agreements) for 100% availability without any
exclusions for maintenance periods or utility disruptions. NTT Com will
now begin introducing these advanced technologies throughout its data
"The RagingWire management team and employees are excited to be part of
the NTT family of companies," said George Macricostas, founder and CEO
of RagingWire. "By joining NTT, we will be able to extend our data
center platform globally, expand the markets we serve and add more
strategic value to our customers."
It is estimated that the U.S. market for data center services, which
accounts for more than 50% of global demand, has roughly doubled between
2010 and 2013. NTT Com is accelerating its development of global
seamless cloud services via 150 data centers worldwide and is
strengthening its one-stop provision of ICT solutions, including data
center services, in the growing U.S. market. NTT Com currently offers
services from data centers in eight U.S. cities. The acquisition of
RagingWire strongly positions NTT Com to serve the growing U.S. market
with increased capacity.
About RagingWire Data Centers
designs, builds, and operates mission critical data centers that deliver
high-density power and 100% availability. The company has 650,000 square
feet of critical
data center infrastructure in Northern California and Ashburn,
Virginia and the highest customer loyalty scores in the industry. Their
patented power delivery systems and EPA ENERGY STAR (News - Alert) rated facilities
lead the data center market in reliability and efficiency. With flexible
colocation solutions for retail and wholesale buyers, a carrier neutral
philosophy, and unmatched customer service, RagingWire meets the needs
of top enterprise, Internet, and government organizations. More
information is available at www.ragingwire.com.
About NTT Communications Corporation
NTT Communications provides consultancy, architecture, security and
cloud services to optimize the information and communications technology
(ICT) environments of enterprises. These offerings are backed by the
company's worldwide infrastructure, including IPv4/IPv6 Global Tier-1 IP
Network, Arcstar Universal One™ VPN network reaching more than 190
countries/regions, and over 150 secure data centers. NTT Communications'
solutions leverage the global resources of NTT Group companies including
Dimension Data (News - Alert), NTT DOCOMO and NTT DATA.
Further information: www.ntt.com
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