One of the biggest corporate mergers Sacramento has seen in years was completed Monday.
Sacramento’s RagingWire Data Centers announced it has wrapped up its 80 percent takeover by Japanese telecommunications giant NTT Communications Corp.
NTT, a subsidiary of Nippon Telegraph and Telephone, paid $350 million for the controlling stake in RagingWire.
The deal was first announced in late October.
Takeovers of Sacramento companies have occasionally caused business leaders to cringe, as these mergers remove yet another corporate headquarters from an already thin roster. In recent years, area companies such as Roseville’s SureWest Communications and Davis biotech company AgraQuest have been sold.
But NTT said RagingWire will keep its name, its employees and its operating independence. Not only that, the Japanese company plans to provide RagingWire with significant capital infusions to expand its presence. RagingWire officials have said the NTT takeover would give the Sacramento company greater reach and credibility with big-name clients.
Founded 13 years ago, RagingWire hosts websites and data for a growing list of corporations at its warehouse-like buildings in Natomas and Ashburn, Va. Some 200 of its 300 employees work in Sacramento.
“RagingWire’s management team and employees are honored to be recognized by NTT with this investment in our business,” said RagingWire founder and Chief Executive George Macricostas in a prepared statement. “We plan to accelerate our build plan in North America.”
RagingWire recently began building a second data center in Natomas and is planning a major expansion in Virginia.
Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.