Portfolio News

LDC portfolio company OnApp acquires SolusVM

LDC portfolio company OnApp has signed a definitive agreement to acquire SolusVM, the virtual server management system used by thousands of service providers to offer Infrastructure-as-a-Service cloud hosting. The acquisition extends OnApp’s position as the leading Infrastructure-as-a-Service platform provider for the hosting and service provider market, with more than 3,000 customers, and a product portfolio that spans the complete spectrum of Infrastructure-as-a-Service.

Following the acquisition, OnApp will extend SolusVM to be able to access infrastructure from the OnApp Federation, the world's largest public cloud.

The OnApp Federation is based around OnApp Market - a wholesale service provider-to-service provider marketplace for compute, RAM, storage, and content delivery network ('CDN') capacity, that currently covers more than 170 global locations.

The addition of 2,000 SolusVM service providers to the OnApp Federation will create significant demand in the OnApp Market, which translates to new revenue streams for infrastructure suppliers.

Commenting on the news, Ben Welch-Bolen, CEO of Site5, a long-term OnApp and SolusVM customer, said: "Opening up SolusVM to the OnApp Federation is going to create some alarming waves for companies like Digital Ocean, who with a handful of datacenters will find it difficult to compete with the instant global presence the OnApp Federation provides. If you're an application developer the ability to spin up virtual machines anywhere in the world on demand through a single user interface is extremely compelling – and that is exactly what service providers will be able to offer."

"This is very cool news for OnApp and SolusVM customers, and, we hope, for the whole hosting industry," said OnApp CEO, Ditlev Bredahl. "This is a significant transaction that adds a few million to our revenue, a large number of customers to our community, and a new OnApp product that enables the kind of streamlined, bare-bones cloud that developers love. It's a perfect complement to the fully integrated cloud, dedicated, CDN and storage services that the core OnApp platform brings to service providers."

"Most importantly, though, this is the next phase in the growth of the OnApp Federation and the OnApp Market. You have to balance supply and demand when you're building a new marketplace. Over the last couple of years we've built up an amazing supply of infrastructure in the OnApp Federation, with a huge range of price and performance options for CDN and now compute resources too."

Article Footnotes

Notes to Editors

  1. LDC is part of the Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority
  2. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
  4. LDC has a UK regional network of 9 offices.