So what else did I miss while travelling to Miami for Metro Connect this week? Apparently on the list is an infrastructure acquisition in the colo/cloud space. Internap has announced an agreement to purchase SingleHop, LLC.
Chicago-based SingleHop has been around a little over a decade, starting out with automated server deployment and evolving into a specialist in managed hosting and infrastructure as a service. It looks like a clean fit for Internap, with plenty of synergies both from cost savings and from new revenue opportunities within the combined customer bases.
SingleHop CEO Zak Boca will move over to become become Internap's CMO. The deal will cost Internap $132M in cash, and will add about $45-50M in revenue and $16M of annualized EBITDA. They expect to realize $2-3M in synergies. Jefferies will be providing the debt financing to make the deal work.
Meanwhile, Internap says that Q4 revenues will check in at about $70M, which would reverse the trend we've seen over the last couple of quarters.