June 5, 2008 – (HOSTSEARCH.COM) – Wachovia Capital Partners (WCP) has announced that it has acquired web host HostMySite, it was reported today. Terms of the acquisition were not disclosed. DH Capital advised HostMySite.com in this transaction.
HostMySite.com is a leading hosting provider, delivering highly scalable hosting solutions including managed hosting, dedicated hosting, virtual private servers, and shared hosting. Wachovia Capital Partners partnered with experienced industry executives Art Zeile and Joel Daly earlier this year with a goal of acquiring and building a leading managed hosting company. With this acquisition, the executives will assume the roles of CEO and COO of the company.
Founded in 1997 by Lou Honick and Neil Heuer, HostMySite.com has over 250 employees, 4,000 servers and state of the art datacenter facilities. Following the transaction, Lou Honick will become the Chief Strategy Officer. ''With greater access to financial capital, HostMySite.com will continue as a leader in our industry. We believe that we have great prospects for growth and can further expand our reputation for quality of service, deep expertise, and solid execution,'' said Mr. Honick. ''We value the breadth of industry experience that Wachovia Capital Partners brings to the table having invested in hosting services companies for over a decade. We believe in this market and our opportunities are significantly enhanced with the backing of a strong financial partner.''
Art Zeile and Joel Daly were the founders of Inflow, an IT services company managing 14 datacenters, which was sold to SunGard Availability Services in 2005. Wachovia Capital Partners was the first and largest investor in Inflow. ''We are incredibly proud of what Lou Honick and Neil Heuer have created. The culture of HostMySite.com is one of intense focus on the customer. Customer satisfaction will remain our top priority,'' stated Art Zeile.
Wachovia Capital Partners is the private equity investing arm of Wachovia Corporation, the fourth largest bank holding company in the U.S. Since the group's inception in 1988, WCP has invested in excess of $3.5 billion of private equity capital on behalf of Wachovia. WCP's current investment portfolio is comprised of 43 companies. WCP is making this investment from WCP II, L.P., a $1.8 billion fund.
