May 14, 2003 -- Data Return is back, with a new owner that has resurrected the brand.
New York investment firm Saratoga Partners has prevailed in a bankruptcy court auction for the managed hosting business of Divine Inc., bidding $28 million to acquire assets with 260 customers and $60 million in annual revenues.
Divine, the acquisition-happy Chicago-based IT services firm, filed for Chapter 11 protection in February. Its hosting business included the assets of Data Return, Intira and Host One, which were all acquired by Divine.
The best known of the three was Data Return, a Dallas hosting firm founded in 1997 that focused on Microsoft hosting platforms, and worked closely with Microsoft and Level 3.
Saratoga will operate the new company as Data Return, and has tapped Data Return founder Sunny Vanderbeck as the CEO.
Christian Oberbeck, managing director of Saratoga, said the managed services business was "clearly one of Divine's most valuable assets, and we are confident that our partnership with its founding management will make it an outstanding acquisition for Saratoga and our investors."
"Data Return has dedicated and experienced employees, a loyal and expanding customer base, and substantial opportunities for growth," Oberbeck said. "And we are indeed fortunate that Sunny Vanderbeck, who is a highly focused leader and visionary in the industry, will continue at the helm."
"We are excited about our new partnership with Saratoga Partners," said Vanderbeck. "The combination of our industry experience, innovation and capabilities along with our ability to operate as a profitable standalone business is unique."
Saratoga Partners was founded in 1984 as a division of the New York investment firm Dillon, Read & Co., Inc., and has invested in 31 companies with an aggregate value of more than $3.5 billion. It has been an independent firm since 1998 after Dillon Read was acquired by Swiss Bank Corporation.