Everett provider of cloud computing power plans national expansion after as much as $12M investment

Published By the Puget Sound Business Journal

Computer Power & Service Inc., an Everett company that specializes in power systems for cloud computing servers, has received a major investment from Portland-based JEB.

CPSI is working in the burgeoning cloud computing segment, and it benefits from the trend of companies using more and more computer servers as they increase their use of cloud computing.

CPSI handles the design, installation and other aspects of the power systems that run computer servers.

The deal gives JEB, an industrial holding company with a focus on manufacturing, distribution and service businesses, a majority stake in CPSI, said John Dwyer, CPSI’s president.

Dwyer will continue to run CPSI “for at least the next few years,” he said, and it will retain all of its 23 employees.

The two companies didn’t disclose the financial terms of the transaction, which closed Wednesday. However, a source familiar with the deal put the transaction value between $9 million and $12 million.

CSPI was founded in 1991 and purchased by Dwyer in 2008.

“I bought the company for less than I sold it for,” he said.

CPSI provides engineering, design, equipment installation, maintenance and 24-hour system monitoring for companies running computer servers, also known as data centers. Dwyer said the company did the deal with JEB because it was looking for both capital and expertise as it expands nationally. CPSI already has offices in Virginia, Ohio and Oregon.