Datapipe has bought Layered Tech to move into the government sector with FISMA and FedRAMP compliant federal cloud offerings. The financial terms of the deal were not disclosed.

The Jersey City, New Jersey-based cloud managed hosting services and data centers provider this week said the acquisition will additionally continue growth and leadership in delivering managed cloud services and hosting.

Layered Tech is a provider of PCI-, HIPAA- and FISMA-compliant hosting, managed hosting and cloud computing services.

Dan Tudhal, who previously ran Layered Tech’s Government business, will run the Datapipe Government Solutions business.

Datapipe Global Marketing Senior Vice President Craig Sowell, a former IBM executive who joined the company in June 2014, told Talkin' Cloud that the company's shift in focus to the government sector "is a natural fit for our brand and our value proposition."

"We believe our approach to service delivery and customer support is a perfect fit for government and it is a very logical strategy to continue our rapid growth," he said. "In particular, we believe our managed cloud solution that allows for both the optimization and integration of AWS services to our hosted private and traditional managed environments will be very attractive to government clients."

Sowell would not comment on if Datapipe was looking at other companies before settling on Layered Tech. He also noted that the company does not publicly comment on its mergers and acquisition (M&A) activity.

He said the acquisition "expands the opportunities for channel partners to engage with Datapipe -- including the opportunity to participate in channel partnerships in the government sector as well as our strengthened security, compliance services and industry verticals such as financial services, healthcare and e-commerce."

Datapipe has raised $487.4 million from investors since July 2008. An unknown private equity firm invested $236.4 million in the company in May 2013.

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