Data centre services firm Equinix has agreed to buy Packet, a US-based IT automation technology provider backed by corporates Samsung, Dell, SoftBank and JA Mitsui Leasing, for an undisclosed amount.
Founded in 2014, Packet offers an automated bare-metal connectivity platform where each client’s connection is automatically routed to cloud computing servers without sharing bandwidth with other users.
The servers can be hired for hourly rates ranging from $0.35 to $1.85, and are intended to reduce latency for applications which run on multiple clouds or in edge computing architectures where some tasks are executed on the client’s local network.
Packet’s service currently encompasses more than 20 public cloud servers. It is expected to help augment Equinix’s existing digital infrastructure services.
The company raised $25m in a mid-2018 series B round featuring electronics producer Samsung, telecommunications group SoftBank, computing technology provider Dell and machine leasing service JA Mitsui Leasing.
The round was led by Third Point Ventures, a subsidiary of investment adviser Third Point, and included venture capital firm Battery Ventures, while Samsung and Dell invested through subsidiaries Samsung Next and Dell Technologies Capital.
SoftBank had already led a $9.4m series A round for Packet in 2016 that included Dell Technologies Capital, then operating in stealth mode, after $1.7m from assorted angel investors in 2014.