SoftLayer, The Planet: Q4 Hosting Merger Expected
A few weeks ago at HostingCon, The VAR Guy and MSPmentor heard rumors that The Planet and SoftLayer were planning some sort of merger or business combo. Fast forward to the present, and merger discussions between SoftLayer and The Planet continue, the two hosting providers confirm. A deal is expected to be completed in Q4, 2010. Here are the details.
Assuming the deal gets completed, the combined company will have more than 25,000 customers in 110 countries with more than 78,000 servers under management, The Planet says.
But is the merger official? Sort of… In order to separate fact from fiction, The Planet sent along the following bullet points:
- GI Partners and SoftLayer’s management team have acquired all equity in SoftLayer Technologies. Terms of the transaction were not disclosed.
- SoftLayer and The Planet are in discussions to merge the two companies.
- The Planet has been a GI portfolio company since 2006.
- Lance Crosby, Chief Executive Officer for SoftLayer, will lead the new company.
- Headquarters for the new company will be Dallas; there are no current plans to curtail operations in Houston.
- The current plan is to complete the merger in the fourth quarter of this year.George Karidis, Chief Strategy Officer for SoftLayer, will serve as Chief Integration Officer for the merged company.
- The full management team for the combined company will be named during the integration planning process.
Deal or No Deal?
That’s a lot of bullets. What do they all mean? To The VAR Guy, it sounds like The Planet and SoftLayer have agreed in principle on a deal, but details about the integration process remain to be worked out. Again, that’s just The VAR Guy’s best guess.
So, what’s in it for the merged companies — and for partners and customers? Once again, The Planet came armed with bullet points. According to The Planet:
- Each company’s core strengths will be complementary. SoftLayer brings automation and innovative product development, and The Planet brings advanced services, managed hosting, and collocation; both offer cloud technologies, the companies say.
- Customers and partners will benefit by having the products and services that the companies have offered independently now available from a single provider, the companies say.
- The merged company envisions doubling its revenue over the next few years, with growth in key areas including an expanded global data center and operations footprint, the companies say.
The VAR Guy is tracking the story and hopes to speak with company officials later today.