Data Storage Buys Majority Stake in e-ternity
Cloud storage and cloud computing specialist Data Storage Corp. announced it has acquired 80 percent of the outstanding shares of Toronto-based e-ternity Business Continuity Consultants, which provides Web-based business continuance services using cloud computing technologies.
The cash and stock transaction was approved this week by e-ternity's shareholders, though additional terms of the deal were not disclosed.
Data Storage intends to operate e-ternity, founded in 2004, as an independent subsidiary and add its pay-as-you-go cloud-based solution to its suite of hosted disaster recovery and high-availably offerings, according to a company press statement. The company also plans to retain e-ternity's senior management team as it uses the acquisition to expand its footprint in the United States and Canada, where e-ternity counts Travellers Insurance and Psion among its customers.
"The acquisition of e-ternity and its core cloud computing offering is an ideal complement to Data Storage Corporation's hosted data protection services," Chuck Piluso, chairman and CEO at Data Storage said in a prepared statement. "When finalized, this acquisition is expected to immediately contribute to the continued growth of our business by providing us with greater access to the IaaS market, one growing at an estimated CAGR [compound annual growth rate] of 52 percent while building upon our Safedata Asset acquisition which established our position in the IBM market.
Data Storage sees a number of attractive acquisition opportunities in the high-growth infrastructure as a service (IaaS) market, as part of its business plan to continue positioning the company as a leader in cloud computing and data storage technology services, Piluso continued. e-ternity's business continuity management services portfolio, which offers business continuity, disaster recovery and pandemic planning services will augment Data Storage's solutions.
"We are excited to join the team at Data Storage Corporation because we each share the same mission, to provide customers with the most effective and reliable data protection and business continuity services available," e-ternity president Greg Onoprijenko said in prepared remarks. "Working together, we will be able to greatly expand our collective offerings while maintaining the levels of service our customers have come to expect."
In May, Data Storage announced the completion of phase one and two of its three-phased expansion plan for its Waltham, Mass.-based data center facility, with the additional installation of IBMs iSeries High Availability and Disaster Recovery server hardware, as well as the new IBM iSeries Hosted Cloud solution. The company also expanded its cloud-based off-site storage and data vaulting capabilities, a market expected to surpass $7.2 billion in spending by 2014, according to recent research from IT analytics firm IDC.