Hosting provider INetU announced BV Investment Partners, a private equity firm that recently bought a majority share in the company, had acquired it. This is part of a recapitalisation deal conducted with INetU founder Dev Chanchani.
The hosting company’s founder will retain what they describe as a significant share, whilst also remaining as the president and CEO of INetU. Furthermore, BV Investment Partners Matthew J. Kinsey and Louis Bertocci have joined the company’s reshuffled board of directors.
Neither company consented to reveal the financial details of the deal, but they did announce it was a recapitalisation transaction. This likely means INetU’s debt was converted into equity by the deal.
INetU has struggled in recent years with its finances, but the fact remains that it is still an extremely prominent web host with a strong customer base. It offers e-commerce facilities and financial services for its clients, which makes it more of a specialist facility than anything else. It focuses mainly on services rather than hosting hardware.
Recently, it has also expanded into the cloud computing market with the launch of a gated community cloud. It is an enterprise cloud hosting service offering specialist services for its enterprise clients.
INetU will accelerate its existing growth through this investment, according to founder Chanchani. He also said in a press release put out by INetU, “Our new partnership with the BV team will help to accelerate our existing growth initiatives and will enhance INetU’s capabilities to provide leading and innovative business cloud solutions.” He continued to talk of the company’s new partner, “BV has a long history of successfully partnering with founder-owned companies like INetU, and my senior management team and I look forward to working closely with them.”
Observers expect INetU to flourish in the future, especially after it opened a new international data centre in Amsterdam.