NTT Communications (NTT Com) announced it will acquire approximately 80 percent equity interest in RagingWire Data Centers for $350 million (USD).
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
The acquisition will more than double NTT Com’s data center space in the U.S. 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.
The U.S. market for data center services, which accounts for more than 50 percent of global demand, has roughly doubled between 2010 and 2013. NTT Com is accelerating cloud services with its 150 data centers worldwide and strengthening its one-stop provision of ICT solutions, including data center services, in the growing U.S. market.
The deal with RagingWire is critical for NTT Com as it helps increase its overall capacity, providing data center infrastructure management tools which enhance collocation service’s reliability and efficiency. RagingWire’s expertise in data center innovation will help NTT enhance its global cloud solutions, NTT Com said.
Founded in 2000, RagingWire has annual revenues of approximately $85 million (USD), and a compound annual growth rate of 30 percent. The company has approximately 300 employees.
After the acquisition, 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.
RagingWire has won 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. NTT Com will now begin introducing these advanced technologies throughout its data centers worldwide.