April 18, 2002 -- A unit of Fort Washington Capital Partners has acquired the assets of ServerVault, a Virginia provider of ultra-secure corporate hosting services.
ServerVault filed for Chapter 11 bankruptcy in January. Cincinnati-based Fort Washington indicated it will retain the current ServerVault management team and employees.
Fort Washington will be ServerVault's only outside equity investors, the company said. ServerVault was founded in 199 with funding from several Washington, DC-area venture capital firms. The new ownership said it will "bring significant financial resources" to ServerVault.
"ServerVault is the premier hosting environment for the enterprise market today,'' said Steve Baker, vice president at Fort Washington. "We work with winners, and ServerVault fits the bill. ServerVault has an outstanding array of services and a top-notch client list.
"More importantly, this investment will enable ServerVault to expand into new businesses," Baker added, "The company survived a troubled economy in 2001 and with this restructuring, it is poised for great success in 2002 and beyond."
"This deal is a huge win for our clients,'' said Patrick Sweeney, President and CEO at ServerVault. "While the transaction was completely seamless to our customers, we now have additional resources to reinvest in our technology and bring further innovative services to our clients. Our customers will also enjoy peace of mind knowing their data is being protected by a cash-flow positive, growing, financially stable company. In this economy, that's worth a lot.''
Andrew Schroepfer, president of Internet infrastructure research firm, Tier 1 Research, said the new ownership will make ServerVault a stronger competitor in the market for hosting services.
"Many hosting companies have come and gone in the past 18 months," said Schroepfer. "Financial viability has become a key criterion in the selection of any service provider. Fort Washington's investment gives ServerVault the resources it needs to thrive in a competitive market.''
ServerVault provides complex hosting solutions that protect clients against hackers and viruses. Its customers include CapitalOne, The Carlyle Group, The NFL, The United Way and Citigroup. The company's headquarters and principal data center are located in Dulles, Virginia.
Fort Washington Capital Partners, LLC, is the wholly owned private equity subsidiary of Fort Washington Investment Advisors, Inc., Inc. is a member of Cincinnati-based Western & Southern Financial Group.