NTT Com to Acquire 80% Stake in RagingWire Data Centers
NTT Com to expand and enhance global data center colocation solutions by leveraging RagingWire’s patented data center design and world-class customer experience.
TOKYO, Japan and SACRAMENTO, Calif. — October 28, 2013 — NTT Communications 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 U.S. 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 colocation service’s reliability and efficiency. RagingWire leads the data center industry in availability, innovation, and customer experience, and that 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 internet and enterprise customers including such notable names as Flextronics, Polycom and NVIDIA.
In 2012, RagingWire was awarded two patents for data center power delivery systems and technology. These patented technologies include the 2N+2™ 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 centers worldwide.
"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 US 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.