US-based collocation data center provider, 365 Data Centers, has secured $16 million in Series B funding while also obtained an additional $55 million credit facility to support their expansion strategy.
A statement issued on earlier this week revealed that the funding came from existing investors Crosslink Capital and Housatonic Partners, whereas Fortress Credit Corp. provided the credit facility. The startup intends to utilize the new financing towards developing new data center products, as well as expanding its cloud and managed services offerings while also providing colocation services in tier 1 and tier 2 U.S. markets.
Aaron Blanchette, the Managing Director at Fortress Investment Group LLC notes, “At Fortress, we have provided financing to many leading data center companies. In our view, 365 Data Centers is similarly positioned to succeed in the expanding data center and cloud industries. We look forward to playing a part in 365’s organic expansion and potential mergers and acquisitions, as opportunities arise.”
Started in 2002 as 365 Main, the company provides options for business growth and cloud access through ‘secure and reliable colocation services’. The two key reasons it stands out amongst its competitors, says CEO John Scanlon, is, firstly the flexible pricing model that allows customer to ‘pay as they grow’ with no long-term lock in contract and secondly, customised services for small and mid-sized businesses, telecom carriers and cloud service providers.
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(Image Credit: Beraldo Leal)