Managed Data Holdings Acquires Stargate in Suburban Chicago

Managed Data Holdings Acquires Power-Rich, 86,000-Square-Foot Data Center in Suburban Chicago Market; Continues Expansion to Solidify Position as Leading Provider of Colocation and Managed Infrastructure Services

OAK BROOK, IL--(Marketwire - August 27, 2008) - Managed Data Holdings, L.L.C., a leading operator of state-of-the-art data centers, announced today that it is has acquired Oak Brook-based Stargate, a local data center operator in suburban Chicago offering colocation, managed servers and managed services.

"Stargate represents an important addition to Managed Data Holdings and will facilitate continued organic growth and geographic expansion," said Peter Stevenson, Chief Executive Officer of Managed Data Holdings. "Suburban Chicago becomes the third market for our company as we continue to execute on our plan of acquiring and growing assets that have solid infrastructure, a strong customer base, and significant expansion capabilities in Tier II and suburban Tier I markets. In conjunction with our other data centers, we will offer a comprehensive suite of power-rich colocation, multi-homed performance-based IP routing, disaster recovery solutions, scalable managed services, and managed hosting."

"Stargate, located in the heart of the Midwest, provides a strategic geographic location with leading edge data center technology, and bolsters Managed Data Holdings' disaster recovery offerings to mid-size and enterprise business customers," Stevenson added.

"We are very pleased to be joining forces with Managed Data Holdings," said John Rante, Stargate's Chairman. "This new company brings the necessary resources to meet our customers' growing needs and accelerate the company's growth trajectory. Besides providing customers with premium data center solutions, we will now be able to offer Managed Data Holdings' existing disaster recovery, managed hosting and managed service offerings to the Chicago market. It's a very exciting opportunity."

Managed Data Holdings' Chicago business will continue to operate under the Stargate brand name in the near term, and, as part of the acquisition, Managed Data Holdings expects to continue making success-based investments into infrastructure upgrades of the former Exodus 86,000-square-foot facility.

"As the demand for high density data center space grows, we are committed to meeting those demands by increasing cooling and power capacity within the facility," said Evans Mullan, COO of Managed Data Holdings. "These capacity increases, along with the full suite of managed services, including virtualization already available in our other data centers, will benefit current and future customers by providing both increased efficiency today and a clear growth path for future requirements. We will continue to deliver top shelf customer service to our existing customers at the center, and we'll use our hands-on service approach to convince Chicago area business customers that our data center is the place to be."

"Stargate's ability to support high density platforms is aligned with Managed Data Holdings' strategy to provide its customers with scalable IT environments, while creating a framework for improved cost containment and capital expenditure reduction that is so important to customers," added Stevenson. "The Stargate facility meets those needs today and customers are already taking advantage of the benefits."

In addition to the impressive size and security features in place in the Stargate data center, the company hosts an extensive network of IP providers within the facility. Stargate is the most recent data center acquisition for Virginia-based Managed Data Holdings, making it the third location now operated by the privately held firm. In addition to Stargate, Managed Data Holdings boasts a growing and impressive portfolio of state-of-the-art data center facilities including InteleNet Communications ( in Irvine, Calif., as well as Data393 ( in Englewood, Colo. The three facilities bring a combined total of more than 197,000 square feet of data center facility space to Managed Data Holdings. Upon completion of SAS70 Type II certification in Chicago, all Managed Data Holdings data centers will be SAS70 Type II certified.

About Managed Data Holdings

Managed Data Holdings (MDH) was founded by three highly experienced industry executives in conjunction with Great Hill Partners and Catalyst Investors. MDH's strategy is aimed at operating state-of-the-art data centers across suburban Tier I and Tier II markets in the U.S. to meet the increasing demand for managed hosting, managed services, colocation space and disaster recovery services required by small and medium-sized business customers or divisions of large enterprises. All MDH data centers are SAS70 Type II compliant and are designed to accommodate the changing power density and cooling needs of the colocation market while maintaining consistent high levels of customer service and support.

About Stargate

Located in Oak Brook, Ill., a prestigious suburb of Chicago, Stargate is a leader in Global IT infrastructure services. Founded in 1989, Stargate offers premium colocation and dedicated server solutions to its customer base. With a proven commitment to excellence in customer service and an expansive 86,000-square-foot data center facility to support its infrastructure, Stargate is an important provider in the vibrant and growing data center market in Chicago. Visit

Contact Information: Press Contact: Marc Lumpkin 303-378-2366