Intermedia Expands Cloud Footprint With Zlago Acquisition

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Intermedia, a major provider of hosted Microsoft Exchange services, has acquired cloud services vendor Zlago in a move Intermedia said will expand its cloud services portfolio and expertise.

Zlago founder and CEO Michael Gold, will join Intermedia as the company's president, the companies said Tuesday.

Gold reports to Intermedia CEO Phil Koen, who was just named to that post last month after Intermedia was acquired by venture capital firm Oak Hill Capital Partners for an undisclosed sum.

Intermedia, in a statement, said the Zlago acquisition "was executed as part of Intermedia's recent acquisition" by Oak Hill Capital Partners, although Zlago is not one of the venture capital company's investments.

Intermedia is best known for providing hosted Microsoft Exchange e-mail services, managing 320,000 Exchange mailboxes for some 38,000 small and mid-size customers.

In the last year Intermedia has been expanding its offerings to include hosted PBX, e-mail encryption and backup services. That expansion will accelerate with the acquisition of Zlago, which sells a variety of cloud services including hosted desktops, Software-as-a-Service business applications, security, disaster recovery, backup, Exchange, SharePoint and PBX/VoIP.

Zlago is particularly known for developing bundles of cloud services for vertical industries, including legal and financial companies and the "Doctors Office in the Cloud" bundle for the medical industry. "Each of these verticals have their own specific needs," Gold said in a phone interview.

"The Zlago acquisition will not only extend the level of cloud expertise within Intermedia, but it will also prove to be a catalyst for strategic growth within the Intermedia cloud services portfolio," CEO Koen said in a statement.

"Intermedia gains Michael Gold's management, cloud and channel expertise – as well as important Zlago resources, such as deep relationships in the channel community. With Oak Hill's resources behind Intermedia, we intend to build the leading provider of cloud services," Koen said.

CRN recently named Gold as one of the industry's 25 most innovative executives.

NEXT: Channel Partner Plans

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