News-Press & Gazette Invests $22 Million in Cloud Companies
Two start-ups in St. Joseph, Mo. benefit from investment
September 17, 2012
ST. JOSEPH, MO.: News-Press & Gazette
has invested $22 million in three data-hosting companies. The company has agreed
to invest $2 million in two new start-ups in downtown St. Joseph, and $20 million
in Online Tech, an established data-hosting firm in Ann Arbor and Flint, Mich.
“This investment by NPG provides us the ability to expand the business into additional
markets across the Midwest,” said Online’s president and CEO, Yan Ness.
Online Tech said it has more than 60,000 square feet of data center space in Ann
Arbor and Flint, serving midsize businesses ranging from $20 million to $1 billion
in annual revenues. The company offers cloud-computing solutions that have been
independently audited for both HIPPA (medical records) and PCI (credit card) security
Online Tech is expected to work in partnership with the new St. Joseph data centers,
which will operate as Echo Cloud Solutions, LLC, a separate company formed by NPG
“We can now provide data services to a range of customers that we couldn’t have
reached through Echo alone,” said Jeff Penland, director of Cloud Services at NPG.
NPG noted that, “The St. Joseph centers the company adhered to the principles of
its Green Initiative by utilizing global-friendly technologies, including the latest
in energy-efficient power and cooling systems by Liebert Corp. The facilities employ
redundant power systems and an advanced dual-path network structure. The facilities,
located six miles apart, also offer geographic diversity.”
RBC Capital Markets acted as exclusive financial adviser to NPG, which owns TV stations in 10 markets, 14 newspapers and four radio