An initial advance of $6 million was funded immediately and the proceeds were used to fund GlassHouses acquisition of RapidApp, a Chicago-based server virtualization consulting company. RapidApp, founded in 1999, assists in the design and deployment of some of the largest computing infrastructures in the United States, including server virtualization and projects, and the virtual infrastructure that supports them.
The growth in the server virtualization business and the success of companies such as VMware (NYSE:VMW) clearly validates GlassHouses strategy to acquire an established player such as RapidApp. This financing was a creative solution for a blue-chip company such as GlassHouse to strategically expand its business without issuing additional equity, said Lawrence Larry Goldfarb, CEO of LRG Capital Group and Portfolio Manager of BayStar Capital III.
GlassHouse Technologies Inc.