Tech pioneer Manny Medina will lead a new multinational data center and cybersecurity company based in Miami.
Medina Capital, a Miami-based private equity firm led by Medina, and global private equity firm BC Partners are forming a new venture in a $2.8 billion transaction combining a worldwide network of data centers with cybersecurity and data analytics companies, the firms are expected to announce on Friday.
The new company will have more than 1,000 employees. It’s too early to say exactly how many jobs will be in South Florida, but it will be a strong presence, Medina said.
This new company, which will be named and branded at a later date, will be acquiring 57 data centers from CenturyLink, said Medina, who founded and led Terremark until its $2 billion sale to Verizon in 2011. “To put that into perspective, as big as Terremark was, we had 13 [data centers],” Medina said in an interview Thursday. At the same time, the new joint venture is acquiring four portfolio companies from Medina Capital.
I’m back and I can’t wait. I feel like I have been rehearsing for this my entire life.
“The joint venture will create one of the most advanced cybersecurity solutions in the world by combining the physical data centers with the security products of our companies,” said Medina. The fast-growing information security market is estimated by tech research firm Gartner to grow to $113.4 billion by 2020. “And what’s really, really exciting is it is all being driven out of Miami.”
Medina will lead the new company as CEO, and his top team will include executives from Medina Capital, which includes former executives of Terremark. The transaction is expected to be completed in the first quarter of 2017, pending regulatory approvals.
“This will be a very big deal for Miami and the technology ecosystem, because [big employers] are one of the things we are missing — this is Terremark on steroids,” said Medina. Medina has raised the profile of Miami’s tech ecosystem in recent years as the founder of eMerge Americas, a technology conference heading into its fourth year. “You have the fact that you have nurtured companies that are now exiting to a major joint venture, but more importantly you will have a significant worldwide company, which will be a leader in the information technology infrastructure, particularly in cybersecurity.”
In addition to the 57 data centers and associated cloud storage businesses, the companies that will be part of the new company are Doral-based Easy Solutions, a cyber-fraud fighting company, as well as Cryptzone, Catbird and Brainspace, all part of Medina Capital’s investment portfolio.
Today’s companies need greater flexibility over their IT infrastructure and for their expansive suite of applications to be securely interconnected with customers, suppliers and financial services providers, and “we are creating a secure, global infrastructure to exceed today’s information security, scale and availability challenges,” said Justin Bateman, a managing partner at BC Partners.
1,000 Number of employees the new tech company will have, but it’s unclear how many will be in Miami
The new company will have more than 3,500 customers and 2.6 million square feet of data center capacity. The data centers are in the United States, Europe and the Far East, but not Latin America. “Latin America is a big opportunity for us — that will be one of our top priorities,” said Medina, who has been a proponent of the advantage Miami has as the gateway to Latin America.
“To have a technology infrastructure provider of this caliber based in Miami and led by a proven team of top managerial talent will have an unbelievably catalytic effect on the local tech ecosystem,” said Jaret Davis, co-managing shareholder of Greenberg Traurig, who led the legal team serving as counsel to Medina Capital in the transaction and is a leader in the Miami technology community.
“I’m back and I can’t wait,” said Medina. “I feel like I have been rehearsing for this my entire life.”
Nancy Dahlberg: 305-376-3595, @ndahlberg.