CloudOne Digital acquires Servers.com for a reported $200m

CloudOne Digital has announced its acquisition of Servers.com, a Cyprus-based provider of “bare metal” services with data centres in North America, Western Europe and Asia that was co-founded by Alexey Gubarev, for an undisclosed sum.

According to reports, Servers.com, a backer of the Lensa AI app, which sent AI-generated images from Stable Diffusion rocketing into mainstream social media, has been acquired by CloudOne Digital for €200m.

Servers.com was co-founded by Gubarev, a founder/partner of Cyprus-based Palta, the company which backed Prisma Labs, the startup team that created Lensa AI. Palta has also created consumer mobile apps including period and ovulation tracker Flo, nutrition program Simple, Zing, an AI-powered personal fitness companion, and several others.

Well-placed sources told tech portal TechCrunch that the exit was worth $200 million. However, neither CloudOne Digital nor Gubarev have revealed the acquisition price, other than confirming the exit.

Servers.com will now join the CloudOne Digital-owned “Liquid Web” family of brands, a holding company containing a number of multi cloud-based solutions.

Gubarev, a permanent resident in Cyprus, founded Servers.com in 2013, and Palta in 2016, together with Yuri Gurski and Alex Frolov.

Private equity firm One Equity Partners said Servers.com co-founders Nick Dvas and Konstantin Bezruchenko will join the CloudOne Digital leadership team. Dvas will be the president of Servers.com. Bezruchenko will run global infrastructure and procurement for CloudOne Digital.

Headquartered in Limassol, Cyprus, Servers.com says it operates 18 global data centers with over 3,000 customers worldwide.

The company focuses on “Infrastructure as a Service” for companies with large, persistent workloads such as video gaming, fintech, adtech, IT services, sports tech and a number of web3 applications.

In a statement, James F. Geiger, CEO of CloudOne Digital said: “The acquisition of Servers.com fits squarely into a larger multi-cloud capability strategy that is planned through CloudOne Digital and adds services for mid-market customers who have highly persistent, compute-intensive workloads.”

According to an official press release, Alexey was a majority shareholder and hadn't been involved in the company's day-to-day operations for the past five years. Nowadays Servers.com operates 18 global data centers, serving over 3000 customers worldwide. The company's main focus lies in providing Infrastructure as a Service to businesses dealing with large, persistent workloads. They serve industries like video gaming, fintech, adtech, IT services, sports tech, and a growing market of Web3 applications.

In 2016, Alexey Gubarev and his partner, Yuri Gurski, co-founded Palta, a health & well-being technology company. Palta has successfully launched several projects, such as Flo, a period-tracking service, Simple, a mindful nutrition app, and Prisma Labs, the developer of the AI photo app, Lensa. The Lensa AI, which generated AI-created images from Stable Diffusion, gained immense popularity, spreading across mainstream social media in December 2022.