NPG Expands into Data Center Hosting

News-Press & Gazette Co.(NPG)announced Monday it has invested in two start-up data centers in St. Joseph, Mo. and in Online Tech, an established data center hosting company with operations in Ann Arbor and Flint, Michigan.

The St. Joseph centers, located Downtown at 825 Edmond St. and in the Mitchell Woods Business Park at 1301 S. 58th St., represent a new capital investment of nearly $2 million.
Construction was completed this summer.

Throughout the development of the St. Joseph centers the company adhered to the principles of its Green Initiative by utilizing global-friendly technologies, including the latest in energy-efficient power and cooling systems by Liebert Corp. The facilities employ redundant power systems and an advanced dual-path network structure. The facilities, located six miles apart, also offer geographic diversity.

The investment in Online Tech, based in Ann Arbor, was made August 31. Disclosure of the transaction was delayed until Online Tech formally notified its employees. Terms of the transaction were not disclosed.

Bill Severn, Executive Vice President of NPG, said, “Online Tech is a perfect match for NPG. Its services complement and enhance those services we plan to offer locally.”

With more than 60,000 square feet of data center space in Ann Arbor and Flint, Online Tech is the market leader in Michigan with its data centers serving midsize businesses ranging from $20 million to $1 billion in annual revenues.

Online Tech is also leading the evolving national data center hosting industry with its cloud computing solutions for the financial, health care, retail and e-commerce markets. The company is one of the first to deliver cloud computing solutions that have been independently audited for both HIPPA (medical records) and PCI (credit card) security compliance.

Yan Ness, President of Online Tech, said, “Our company has built the leading data center operation in Michigan. This investment by NPG provides us the ability to expand the business into additional markets across the Midwest.”

Online Tech is expected to work in partnership with the St. Joseph data centers, which will operate as Echo Cloud Solutions, LLC, a separate company formed by NPG in April.

“We can now provide data services to a range of customers that we couldn’t have reached through Echo alone,” said Jeff Penland, Director of Cloud Services at NPG.

RBC Capital Markets acted as exclusive financial adviser to NPG.