BV to lead recapitalization of managed hosting company INetU
Boston, MA, January 9, 2013 – BV investment Partners (“BV”), a middle-market private equity firm focused on the information and business services and communications sectors today announced it has completed a recapitalization of INetU, a leading provider of complex managed hosting and cloud services to enterprise customers. The investment in INetU will make BV the majority shareholder and is being made in partnership with INetU’s founder and CEO, Dev Chanchani.
INetU was founded in 1996 and is headquartered in Allentown, Pennsylvania. INetU has established a leading reputation in the enterprise market by delivering highly reliable and flexible managed and cloud hosting solutions. The Company supports many mission critical websites and applications globally across numerous sectors, including eCommerce, healthcare, financial services, software as a service, education, and government.
Louis V. Bertocci, a Managing Director at BV, said, “INetU provides a comprehensive suite of complex hosting services including a number of compliance, security and other specialized solutions. We believe the rapid growth in data generation and the proliferation of web-based applications and services are changing the way companies address their IT infrastructure needs. INetU is truly a value added partner providing mission critical IT services to a large and growing customer base.” Matthew J. Kinsey, a Principal at BV, noted, “The Company has an enviable track record of reliability coupled with a differentiated, market-leading service level as evidenced by a strong and growing recurring revenue base.”
Dev Chanchani will continue as President and CEO, and will remain a significant shareholder in the Company. “Our new partnership with BV will help accelerate our growth initiatives and we look forward to continuing to provide our customers with world class services and new innovative business cloud solutions,” said Chanchani. “BV has a long history of successfully partnering with and growing founder-owned companies, and my senior management team and I look forward to working with them.”
Louis Bertocci and Matthew Kinsey have joined INetU’s Board of Directors.
INetU will be the first investment in BV’s latest investment vehicle, BV Fund VIII. Vik Raina, the Managing Partner of BV commenting on the investment said, “We are delighted to start the investment program of Fund VIII with INetU. This investment is consistent with our strategy of partnering with fast growing, founder-owned businesses in the communications and information and business services industries and helping them to achieve their growth plans.”
About BV Investment Partners
BV Investment Partners is currently investing its eighth private equity fund. The Firm is one of the oldest and most experienced sector-focused private equity firms in North America. Since its founding in 1983, the firm has invested over $2.6 billion in over 80 companies, actively targeting investments in the information and business services and communications industries. For more information, please visit www.bvlp.com.
About INetU
INetU, Inc., is a leading managed hosting and cloud services provider delivering secure, high performance and reliable hosting for businesses worldwide. INetU expertly provides compliant solutions for eCommerce, Healthcare, Financial Services, SaaS, and more. With domestic and international datacenters, INetU has the global reach to support even the most complex hosting environments. INetU is PCI, SSAE 16/SOC 1, SOC 2/3, ISAE 3402 and Safe Harbor compliant and provides HIPAA guidance and assurances. For more information, please visit www.inetu.net.
