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Service Provider Consortium BLM Completes Equity Buyout of Codero Hosting

By Laura Stotler June 02, 2015

Equity in on-demand hybrid cloud services company Codero Hosting has officially changed hands. BLM Acquisition Corp. has completed its buyout of all the company’s outstanding equity from Catalyst Investors as well as other shareholders, the company announced. The acquisition is significant in that BLM will fuel a new phase of growth for Codero, including new products and services as well as development efforts.

BLM, which is comprised of 32 regional telecom and broadband providers, is investing to expand Codero’s sales channel by leveraging the company’s existing data center facilities. Funds will also be allocated toward expansion of the cloud services company’s footprint across the U.S. as well as globally.

The acquisition isn’t an ordinary one since BLM is a full-fledged service provider consortium. That means Codero is gaining 32 new partners, which will significantly expand its sales channel, as well as an investment network made up of companies that have decades of experience in communications and technology. The company will also gain a network of “edge” data centers collocated at BLM facilities, broadening its reach and speeding up the delivery of latency sensitive applications.

"This transaction is unique in the hosting space, as it's not just about equity and capital, but also channel partnerships, technology innovations and transit enablement - the supply chain of IoT," said Emil Sayegh, president and CEO of Codero. Sayegh will retain his current position and also become chairman of the board of directors for the new organization.

Codero has been focused on growing and expanding over the past year, and in addition to opening new offices and data center facilities, the company launched software defined networking (SDN) capabilities in December. The move is part of an increasingly popular trend to streamline hybrid cloud deployment efficiently and cost effectively.

The company is using SDN to improve performance of its network, comprised of tens of thousands of servers located throughout the U.S. Virtualization and a solid SDN infrastructure enable Codero customers to easily configure and maintain private networks in a multi-tenant environment. The company’s SDN strategy consists of switches from Brocade Communications Systems as well as Codero’s own software, which enables the company to move customers from switch to switch seamlessly.

"Over the years, independent telecommunications providers have taken leadership roles in the communities they serve, building robust, high-speed, technically advanced networks,” said Bill King, Leo Staurulakis and Manny Staurulakis, the founding shareholders of BLM, in a joint statement. “These providers are increasingly asked to provide the cutting-edge IT services and solutions that their customers now demand. The Codero acquisition is an excellent fit with the natural evolution of the independent communications provider service platform and will provide the BLM investors and their customers with critical capabilities to address these rapidly changing needs.”

Edited by Stefania Viscusi

NFVZone Contributing Editor

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