Cloud automation and managed service provider Logicworks today announced that it has raised a $135 million investment round led by Pamplona Capital. Logicwork’s own management team and its existing shareholders also participated in this round. The company says it’ll use the new influx of capital to fuel its national and international expansion, product development and — potentially — acquisitions.
The company launched as a web hosting service back in 1993 but then moved into managed hosting in the late 90s. Since then, it has expanded its portfolio to offer cloud automation and managed services for enterprises. Its focus today tends to be on AWS. The company offers its clients managed services for building their infrastructure on AWS (as well as VMWare), help with achieving security and regulatory compliance, as well as services for running modern DevOps and container architectures.
“Our new partnership with Pamplona allows Logicworks to make critical investments in innovation and scale, with the aim of helping customers across all phases of the cloud adoption lifecycle move faster and execute more effectively,” said Logicworks’ President and CEO Kenneth Ziegler in today’s announcement.
Logicworks’ customers span many verticals, but the company is especially strong in the healthcare, financial service and commerce business. The company sees the likes of Datapipe and Rackspace as its prime competitors, though it argues that it has stronger automation capabilities and doesn’t have to worry about defending its own install base on traditional infrastructure.
Until today, Logicworks only raised about $4.6 million in total outside equity and over the years, it has used $12.5 million in debt financing to fuel its growth. “The $135MM from Pamplona is a combination of primary and secondary capital, providing liquidity to its previous investor, Seaport Capital, and partial liquidity to its founder who has been out of the day-to-day business since 2011,” the company told me about today’s round. A spokesperson also noted that Pamplona offered Logicworks “a debt-free, capital unconstrained opportunity to support current management in taking Logicworks to the next level to capture this major transition to the cloud that companies need to make as soon as possible to remain competitive.”
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