Cincinnati Bell Buys GramTel for $20M

Cincinnati Bell (CBB) has paid $20 million to acquire GramTel, a privately-held data center provider in the Midwest with a focus on disaster recovery and business continuity (link via John Rath). GramTel operates four data centers with total floor capacity of 22,500 square feet. The company expects 2007 revenue of roughly $5 million, an increase of 73 percent from 2006.

Cincinnati Bell said the deal was driven by GramTel's strong disaster recovery business. "The acquisition of GramTel allows Cincinnati Bell to extend the geographic reach of our data center co-location capabilities and further strengthen our competitive local strategies," said Shane Brown, vice president of business development for Cincinnati Bell. "In addition, GramTel's focus on providing disaster recovery and business continuity services to small and mid-tier businesses is a perfect complement to the success Cincinnati Bell has had in serving larger enterprises."

GramTel is headquartered in South Bend, Indiana and subsidiary of Jordan Industries, Inc. The company also has data centers in Ann Arbor and Grand Rapids, Michigan and Lombard, Illinois.