Computer Outsourcing Services to Receive Funding, Company Name Change

Computer Outsourcing Services, Inc. today announced it will use a $60 million investment from DB Capital Partners and Sandler Capital Management to build a network of Internet Data Centers to provide ASPs and ISPs with colocation services, complex managed Web-hosting services and other value-added e-commerce services.

DB Capital Partners is the merchant banking arm of Deutsche Bank. Sandler Capital Management is a communications-focused investment management firm.

Outsource IT solutions provider Computer Outsourcing Services, Inc. plans to rely on its experience and expertise in managing mission-critical data center projects for global 2000 enterprises to target the opportunities within the ASP, ISP and Web-orientated enterprises markets.

Under the terms of the $30 million investment by each company, Computer Outsourcing Services, Inc.(COSI) will issue a combination of convertible preferred stock and warrants to the investors.

Along with the news of the funding, the company also announced its anticipated name change to InfoCrossing, Inc.

“Our current name no longer captures the direction of our company,” Zach Lonstein, chairman and chief executive officer, said. He added that the new name better reflects the company’s move to providing a broad range of complex managed Web-hosting, colocation and e-commerce services to its rapidly growing targeted markets.

News Around the Web