Managed IaaS provider Total Server Solutions (TSS) has acquired ZeroLag, a provider of optimized managed hosting services in part-debt part-equity deal worth USD 23 million. With this acquisition, TSS will not only be able to access ZeroLag’s products and services but will also gain entry into emerging markets by leveraging ZeroLag’s partners like Dell, Veeam, VMware and Magento.
TSS say that along with the access to products, services and partnership alliances, they will also gain access to ZeroLag’s data center in Los Angeles, a backup facility in Texas and a disaster recovery site in North Carolina. They further added that they will also beef up their sales, marketing and tech teams across the country with this deal. Explaining this in detail, Gary Simat, CEO of Total Server Solutions, commented:
Our acquisition of ZeroLag expands our product suite, talent pool and provides a tremendous path forward to leverage both existing Total Server Solutions & ZeroLag customer bases. Furthermore, alongside the company’s new financial partners comes increased scale, which enables TSS take on much larger, and more complex projects. This is only one of many large announcements that will be seen from TSS this year. We are coming.
According to ZeroLag, the acquisition fills an important gap for TSS when it comes to diversifying their offerings. Emphasizing this, Greg Strelzoff, Founder and CEO of ZeroLag said:
ZeroLag has been an innovator in the proactive managed services space for 17 years and through organic growth became a well-known player in the industry. Total Server Solutions fills in critical gaps to the ZeroLag solution space, such as having compute facilities globally. There are incredible synergies between the two companies and together the two groups will have significant accretive forces on each other.
In closing, TSS said that the debt and equity for this acquisition deal were raised by Layer 7 Capital and J.P. Morgan Chase.