Hosting.com bought by larger firm

Louisville-based Hosting.com has been bought by an out-of-state rival intent on building a national presence in a period of industry consolidation.

HostMySite, a 12-year-old hosting company based in Newark, Del., and Denver, has acquired 9-year-old Hosting.com for several reasons, including a push into geographically strategic sections of the United States and an effort to acquire talent, said Art Zeile, HostMySite CEO.

Zeile declined to give the value of the transaction, noting that both companies are privately owned. But he said that combined, they will have a projected total of 370 employees and about $50 million in annual revenue.

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In a news release, HostMySite said the combination will give the company 43,000 square feet of data-center space in four data centers in Louisville, California and Delaware.

Wachovia Capital Partners provided an additional equity investment to support the acquisition, according to the news release, and Golub Capital provided a $22 million senior credit facility.

The acquisition of Hosting.com by HostMySite will mean few changes in Louisville, where Hosting.com has 70 employees. But Darren King, who had been Hosting.com CEO and its largest investor, has left the company.