AUSTIN, Texas -- Codero Hosting, a leading provider of on-demand hybrid cloud hosting services, announced today that BLM Acquisition Corp. (“BLM”), a consortium of 32 regional telecom and broadband providers, has completed the acquisition of all of the company’s outstanding equity from majority owner Catalyst Investors and all other shareholders. The acquisition includes a significant investment by BLM to fuel Codero’s next phase of growth, which will include the development and launch of new products and services that leverage the company’s existing data center facilities, the expansion of the company’s channel sales effort, and the expansion of the company’s service footprint across the U.S. and the world. Emil Sayegh will remain as president and CEO of Codero, and will become Chairman of the Board of Directors of the new organization. Financial terms of the transaction are not being disclosed.

The partnership between Codero and BLM is strategic on many levels:

In a joint statement, Bill King, Leo Staurulakis and Manny Staurulakis, founding shareholders of BLM, outlined the drive and vision behind the Codero acquisition: “Over the years, independent telecommunications providers have taken a leadership role in the communities they serve, building robust, high-speed, technically advanced networks. These providers are increasingly asked to provide the cutting-edge IT services and solutions that their customers now demand. The Codero acquisition is an excellent fit with the natural evolution of the independent communications provider service platform and will provide the BLM investors and their customers with critical capabilities to address these rapidly changing needs. The Codero transaction is about marrying the impressive technical and product development capabilities of Codero with the collective resources and established market presence of these telecom investors, creating a scalable vehicle for the development and delivery of cutting edge hosting and IT products and services.”

Webster Bank of Hartford, Conn. provided senior financing to BLM in support of the transaction and Sheehan Phinney Bass + Green PA provided legal counsel. On the sellers’ side, DH Capital initiated this transaction and acted as exclusive financial advisor and Lowenstein Sandler LLP provided legal counsel.

Codero Hosting