Layered Technologies, a midmarket-focused on-demand and cloud computing infrastructure player, has raised $20 million in funding to continue its cloud computing and virtualization initiatives, another sign that the cloud computing market is ready to boom.
The funding infusion from investors was lead by Accel-KKR, a tech-focused private equity firm. Investors Enhanced Equity Fund, L.P, and Pangloss International also participated.
According to Layered Tech, the bulk of the investment will go toward growth opportunities in cloud computing and potential acquisitions to supplement Layered Tech’s existing cloud computing, virtualization and managed services offerings and garner Layered Tech a competitive advantage.
“This illustrates that [investors] believe that managed services and cloud offerings will continue to grow,” Layered Tech chairman and CEO Jack Finlayson said in an interview.
Layered Tech was founded in 2004 and has eight global data centers. Its infrastructure currently powers millions of Web sites and Internet-enabled applications, including e-commerce and software as a service. In the cloud landscape, Layered Tech competes directly against incumbent players like Rackspace and others.
“This partnership is key to our ability to grow organically and through aggressive strategic acquisition programs,” Finlayson said. “In addition, this new capital will help us expand operationally, enhance our already robust automation platform, and enable Layered Tech to offer additional benefits to our customers.”
Finlayson said the additional funding will help Layered Tech get its message out to customers while building up its U.S. presence. It will also help Layered Tech broaden its channel ecosystem, he added, noting that Layered Tech has “fairly ambitious" and "aggressive" plans to bulk up its partner program and make itself more attractive to partners.
As for growth through merger and acquisition, Finlayson said the most attractive types of companies include those that are similarly situated to Layered Tech but in the enterprise space; companies that have a strong presence in locations Layered Tech hasn’t reached; and other companies that have seen profitable growth in managed services and cloud computing.
Layered Tech has grown through acquisition in the past, with the April 2008 purchase of Chicago-based managed hosting company FastServers.net. That purchase, Finlayson said, helped Layered Tech grow into the midmarket from the SMB.
Accel-KKR Managing Director Ben Bisconti said that in the challenging economic climate well-funded companies gain a strong advantage in the marketplace. Accel-KKR’s funding of Layered Tech will ensure the company can serve its base of partners and customers.
“The Layered Tech team has rapidly established an impressive managed services, virtualization and cloud computing business, driven by one of the strongest product offerings in the market and superior operational expertise,” Bisconti said in a statement.