• Founded: 2010; rebranded in 2019
• Headquarters: United States
• Core facilities: Two major exchange colocation hubs in New York and London
• Business model: Subscription infrastructure services with direct and broker sponsored hosting
• Industry: Trading infrastructure, Infrastructure as a Service and virtual private server hosting
• Stake for sale: 100%
• Asking valuation: $1,950,000
• 2025 revenue: $1,874,254
• 2026 projected revenue: $2,100,000, updated seller projection
• 2025 adjusted EBITDA: $186,887
• Revenue profile: 81.7% recurring on a conservative measured basis
• Revenue retention: 103.2% quarterly, about 113.5% annualised
• Adjusted EBITDA, Jan to Jul 2026: $295,630, a 22.1% margin
• Customer base: 167 active customers across 54 countries
• Active services: 704
• Installed capacity: 460 rack units across ten cabinets, 70.0% utilised
• Reason for sale: The principal owners are focused on a larger business and do not work in daily operations

Executive Summary

The company supplies ultra low latency hosting, virtual private servers, dedicated servers and direct venue connectivity to brokers, proprietary trading firms, hedge funds, fintechs and retail traders. Its infrastructure is deployed across ten cabinets in two major exchange colocation hubs and supports both institutional accounts and a broader platform customer base.

Revenue grew every year from 2021 through 2025 and the first half of 2026 ran 32.0 percent ahead of the same period in 2025. Gross margin declined as cabinet capacity was added faster than it was filled. Company records indicate 138 of 460 rack units remain available, creating a growth case centered on selling capacity that is already installed and paid for.

The updated seller projection is $2.10 million of revenue for 2026. The management plan targets $2.77 million of revenue in 2027 and $3.28 million in 2028, with gross margin recovering to 25.5 percent and 32.0 percent respectively. These figures are targets rather than current results. The opportunity rests on customer acquisition, pricing discipline, supplier negotiations and improved utilisation of the existing footprint.

Investment Highlights

• Established operating history. Founded in 2010, with fifteen years of trading infrastructure experience and a rebrand completed in 2019.
• Institutional reference customers. The active base includes five named institutional brokers and trading firms.
• Recurring revenue foundation. Measured on invoice detail across twenty months, 81.7 percent of revenue repeats month over month. The method treats any month-on-month increase as non-recurring even where it is a genuine upgrade that recurs thereafter, so the figure reads as a floor rather than an estimate.
• Revenue retention above one hundred percent. Revenue retention is 103.2 percent per quarter and approximately 113.5 percent annualised. Continuing customers on balance spend more than they did the prior period, which is the measure that matters for valuation.
• Organic acquisition engine. Advertising spend represented 0.34 percent of revenue from 2021 through June 2026, with historical blended acquisition cost of $58.
• Installed capacity headroom. Records show 138 rack units available within the existing ten cabinet footprint, equal to 30.0 percent of installed capacity.
• High incremental contribution. The forecast ties variable cost to revenue at 27.0 percent, implying 73.0 percent contribution before new capacity steps.
• Defensible connectivity estate. The product directory includes 34 cross connect products across major venues, data centers and network providers.
• Measured customer satisfaction. 90.2 percent of 214 survey responses were happy. The business plan infers an approximate Net Promoter Score of positive 39, which is not a directly measured score.
• Company records indicate the infrastructure is already installed and paid for; the growth plan is to fill it. Capacity and customer claims remain subject to buyer diligence.

Products and Recurring Revenue Model

The company sells subscription infrastructure and connectivity from a costed product directory covering 49 products across five categories. The first half of 2026 mix shows a balanced revenue base across dedicated servers, virtual private servers and related services.

• Dedicated servers: $565,929, 50.0% of revenue, seven bare metal configurations for exclusive client use
• Virtual private servers: $317,081, 28.0%, six scalable tiers designed for trading workloads
• Other services: $249,486, 22.0%, cross connects, colocation, monitoring and networking
• Total: $1,132,496, all revenue reported as recurring

PRICING AND PRODUCT ECONOMICS

• Dedicated servers: $295 to $1,225 a month, costed margin 30.0% to 45.5%
• Virtual private servers: $40 to $105 a month, costed margin 39.5% to 58.5%
• Cross connects: $29 to $400 a month, costed margin 48.4% to 61.3%
• Monitoring service: $19.99 a month, margin product specific

Average costed product margin is 46.0 percent. The costing model allocates space, power, interconnection, provisioning labor and depreciation to each unit sold.

The margin gap identifies the value creation path. Costed product margin averages 46.0 percent while reported H1 2026 gross margin was 18.6 percent, a difference of 27 percentage points. Product costing charges colocation and power to the units actually sold; the profit and loss carries the full cost of installed capacity whether sold or not. With 138 of 460 rack units installed, powered and paid for but unsold, that 27 point gap is the carrying cost of idle capacity.

The implication is favourable. Margin recovery does not require a price increase or a cost reduction. It requires filling capacity that has already been bought, and incremental revenue converts at approximately 73 percent contribution because a new customer landing within existing capacity triggers no additional colocation, power, depreciation or bandwidth cost.

Services share common infrastructure, so customers can combine servers, virtual environments, cross connects, monitoring and network support under recurring contracts. Institutional and retail demand coexist: the same core network supports five larger legacy billed institutions and 162 platform billed customers.

Customer Base and Unit Economics

The company serves 167 active customers holding 704 active services. Five institutional accounts are billed through a legacy back office system and 162 customers are billed through the main platform. The concentration profile is meaningful and is presented alongside the depth of the customer base.

• Main platform: 162 customers, $165,089 monthly revenue, 85.2%
• Legacy institutional: 5 customers, $28,609 monthly revenue, 14.8%
• Total active base: 167 customers, $193,698 monthly revenue

Named institutional relationships are five named institutional brokers and trading firms. These five accounts average $5,722 of monthly revenue each.

CUSTOMER VALUE BY PLATFORM SEGMENT

• Top 10: 10 clients, observed lifetime value $182,737, projected $572,514, 100% retention, 65.4% of revenue
• 11 to 50: 40 clients, observed $16,947, projected $78,846, 88% retention, 24.3% of revenue
• 51 to 150: 100 clients, observed $2,388, projected $9,055, 62% retention, 8.5% of revenue
• 151 to 405: 255 clients, observed $198, projected $278, 30% retention, 1.8% of revenue
• Concentration. The two largest platform customers represent 41.3 percent of total revenue. The seven largest relationships represent 56.1 percent.
• Target segment. Management identifies customers ranked 51 to 150 as the preferred acquisition segment, with projected lifetime value of $9,055 and 62 percent retention.
• Acquisition efficiency. Historical blended customer acquisition cost is $58. Search accounts for 41.1 percent of attributed signups, while 45.9 percent of all signup sources are unattributed.
• Customer satisfaction. 90.2 percent of 214 survey responses were happy, 4.2 percent neutral and 5.6 percent unhappy.
• Churn reads differently on the two bases. Monthly logo churn is 10.8 percent while monthly revenue retention is 91.1 percent and quarterly revenue retention is 103.2 percent. The divergence is explained by size: all ten of the largest clients remain active and 88 percent of the next forty, while attrition concentrates in 255 accounts averaging $198 of lifetime value that together carry 1.8 percent of revenue.

Lifetime value is calculated from 3,914 invoices across 405 distinct clients over twenty months. A single blended figure would misrepresent the business: mean lifetime value is $6,900 against a median of $315, a ratio of 22 to 1, so the segments are presented separately. Projected values for the top two segments are capped at sixty months because observed retention implies a longer life than the data window can evidence.

Billing data, management representation and company analysis run through August 2026. The $193,698 billing total differs by $262 from the June 2026 revenue used in the capacity analysis. Projected lifetime value is modelled, not realised.

Infrastructure and Defensibility

The company operates ten cabinets across three deployments within the two colocation hubs. The footprint combines proximity to major trading venues with a broad cross connect estate and capacity that company records indicate can support further revenue before another cabinet is required.

• the New York site: 4 cabinets, 21.96 kVA allocated power, 136 of 184 rack units used, 73.9% utilisation
• the London site: 4 cabinets, 18.96 kVA, 125 of 184 rack units used, 67.9%
• the second London deployment: 2 cabinets, 13.98 kVA, 61 of 92 rack units used, 66.3%
• Total: 10 cabinets, 54.90 kVA, 322 of 460 rack units used, 70.0%

CAPACITY ECONOMICS

• Installed rack units: 460
• Consumed rack units: 322
• Available rack units: 138
• June 2026 monthly revenue: $193,960
• Revenue per consumed rack unit: $602 per month
• Revenue supported at current density: approximately $277,086 per month
• Monthly revenue headroom: approximately $83,000
• Estimated cost of an added cabinet: approximately $5,489 per month

Venue connectivity acts as a moat. The product directory lists 34 cross connect products spanning major foreign exchange, equities and digital asset venues, bridge providers, low latency network operators and international carriers.

Physical proximity matters. The network is colocated in facilities where foreign exchange liquidity and bridge providers operate. Recreating the estate requires venue relationships, interconnection work and operational history. The capacity conclusion should be reconfirmed during diligence.

Historical Financial Performance

Revenue grew from $1.43 million in 2021 to $1.87 million in 2025. The first half of 2026 generated about $1.13 million and ran 32.0 percent ahead of the same period in 2025. The updated seller projection is $2.10 million for full year 2026. During the same period, gross margin declined as facility capacity and depreciation grew faster than revenue.

• Revenue: $1.43M in 2021, $1.44M in 2022, $1.47M in 2023, $1.74M in 2024, $1.87M in 2025, $1.13M in H1 2026
• Gross margin: 66.0%, 56.3%, 53.4%, 42.0%, 26.2%, 18.6%
• Colocation plus depreciation as a share of revenue: 20.4%, 21.0%, 27.8%, 35.0%, 44.7%, 50.6%
• Revenue per $1 of colocation rent: $5.25, $5.53, $4.56, $3.49, $2.86, $2.55
• What changed. Colocation rent and depreciation increased from 20.4 percent of revenue in 2021 to 50.6 percent in H1 2026. The business added capacity faster than it filled it.
• Product economics remain stronger. Average costed product margin is 46.0 percent versus reported H1 2026 gross margin of 18.6 percent. The plan attributes the gap to the cost of available capacity.
• July 2026 showed improving direction. Provisional revenue was $205,476, the highest month of 2026. After an estimated missing cost import of $10,000 to $15,000, July gross margin is estimated at 28.6 percent to 31.0 percent.
• The July close is not final. The business plan treats July as an encouraging indicator rather than evidence of a sustained margin reversal.
• Cost management opportunities. Combined recurring colocation cost was EUR 60,261 per month in August 2026. The London site incurred power overdraw fees averaging $1,884 per month across twenty months. Management also intends to renegotiate supplier costs and apply pricing changes selectively.

EARNINGS, JANUARY TO JULY 2026

The diligence analysis reports revenue of $1,337,971 for the seven months to July 2026, with reported EBITDA of $226,230 at a 16.9 percent margin. Adjusted for guaranteed payments to the preferred equity holder, transaction legal and professional fees and transitional seller compensation, adjusted EBITDA is $295,630 at 22.1 percent. Deducting a notional owner replacement hire at $12,500 a month gives $208,130 at 15.6 percent.

• Revenue: $1,337,971 for the seven months to July 2026
• Reported EBITDA: $226,230, a 16.9% margin
• Total add-backs: $69,400
• Adjusted EBITDA: $295,630, a 22.1% margin
• Less notional owner replacement: $(87,500)
• Adjusted EBITDA after replacement: $208,130, a 15.6% margin

Both the adjusted figure and the figure after replacement are presented because the replacement cost is a buyer assumption rather than a historic cost. A buyer who intends to install management should work from the lower figure.

Monthly results swing from $14,544 to $46,619 at the reported EBITDA line. The analysis attributes that to supplier invoices and professional fees landing unevenly rather than to trading variation: revenue moves only 4.6 percent around its mean across the period. July was the strongest month on both bases, at $46,619 reported and $62,072 adjusted, a 30.2 percent adjusted margin.

Figures are drawn from the company general ledger through June 2026, provisional July results and colocation cost records. They are seller supplied and have not been independently audited by FIH.com.

The Margin Recovery Plan

The central plan is a demand strategy rather than an infrastructure build. The first objective is to increase revenue within the existing footprint, then add capacity only when utilisation and revenue require it.

• From 70.0% rack unit utilisation: acquire mid market customers into installed capacity, for higher gross profit without an immediate cabinet step
• From 18.6% H1 2026 gross margin: fill capacity, review suppliers and use selective pricing, targeting 25.5% plan gross margin in 2027
• From a 27.0% modelled variable cost ratio: convert new recurring revenue at 73.0% contribution, targeting 32.0% plan gross margin in 2028
• From 138 rack units available: monitor utilisation against the $277,086 monthly capacity ceiling, with the first new cabinet forecast for August 2028

CONFIRMED CHANNEL PRIORITIES

• Defend and extend organic search. Search already represents 41.1 percent of attributed signups at negligible advertising cost.
• Formalise broker introductions. Broker referrals represent 20.5 percent of attributed signups without a structured commercial program.
• Use paid search selectively. The model uses a conservative benchmark cost of $1,600 per acquired customer, not an observed paid result.
• Reach mid market buyers directly. The institutional customer roster supports targeted outreach to brokers and proprietary trading firms.
• Add dedicated sales capacity. The forecast includes a sales hire from the middle of 2027 after channel conversion is demonstrated.
• Use measured pricing discipline. A 5.0 percent increase in August 2025 resulted in the loss of two customers, both on the lowest priced virtual private server package.
• Stage weighted contract pipeline: $3,306 a month
• Renewal and expansion uplift: $1,709 a month
• Self service first month revenue: $24,718 a month
• Consolidated gross monthly additions: approximately $29,733
• Paid acquisition at scale remains unproven.

Financial Outlook and Value Creation

The forecast is built from January through June 2026 actuals and extends monthly through December 2028. It assumes 27.0 percent variable cost on incremental revenue, capacity costs that remain flat until the existing rack unit ceiling is reached and a dedicated sales hire from the middle of 2027.

• Revenue: $2,771,155 in FY2027, $3,279,217 in FY2028
• Gross profit: $706,319 and $1,049,963
• Gross margin: 25.5% and 32.0%
• Sales hire, fully loaded: $54,000 and $108,000
• Net income: $331,232 and $607,056
• Net margin: 12.0% and 18.5%

The 2025 to 2028 revenue compound growth rate is 20.5 percent, calculated from the 2025 actual base. The December 2028 exit run rate is an annualised management target of $3.54 million. The first forecast cabinet step falls in August 2028, after current capacity is filled.

HOW TO READ THE FORECAST

These are management targets and model outputs, not current results and not a guarantee. The forecast assumes approximately 1.4 percent blended monthly revenue growth, a rate below the growth recorded in the first half of 2026. Margin recovery depends on converting sales within existing capacity.

CAPITAL REQUIRED FOR THE PLAN

Two partners committed $200,000 through personal lines of credit, of which $121,226 was drawn at June 30, 2026. Management states that the operating mechanism is independent of the capital provider because growth spend is directed toward customer acquisition rather than new infrastructure.

Operations, Team and Ownership Context

The company operates with a lean internal team supported by contractors across customer support, systems engineering, network engineering, network automation, human resources and finance. Management comments state that the ownership group provides strategic guidance, oversight and funding rather than daily operational work.

• Daily leadership. Management materials identify a Managing Director. A current organisation chart and management biographies should be confirmed in diligence.
• Technical delivery. The operating model uses customer support and technical roles together with contracted systems engineering and network automation capacity.
• Owner involvement. the two principal owners provide strategic oversight and funding but are not active in daily operations and receive no corresponding draw, according to management comments.
• Support demand is rising. Recorded contacts averaged 121 per month in the second half of 2024, 173 per month in 2025 and 202 per month through July 2026. July reached 276 contacts.
• Labor requires normalisation. The business plan cautions that payroll alone understates total labor cost because contractors are recorded across cost of revenue and operating expense lines.
• Former owner arrangement. Compensation and benefits for a former owner are described as transitional transaction consideration rather than a productive operating role.

OWNERSHIP AND CAPITAL CONTEXT

• Preferred equity held by an institutional holder: $800,391
• Growth lines committed by two partners: $200,000
• Growth lines drawn: $121,226
• Longer standing partner loans: $90,743 each from two partners
• Government loan note payable: $134,527
• Minority holder equity: 3.0% retained, per management comment

The business plan states that owner loans and lines can be repaid or refinanced at closing without changing the operating plan. Transaction treatment and a fully updated capitalisation table remain matters for definitive documentation.

Known Risk Items and Diligence Priorities

The opportunity is compelling because the growth capacity is already installed, but diligence should test the assumptions that determine whether the margin recovery plan is achievable.

• Customer concentration. Measured on total company revenue across twenty months, the largest customer represents 24.4 percent, the two largest 41.3 percent and the ten largest 55.7 percent. The seven largest relationships, being the two largest platform customers plus the five legacy institutional accounts, carry 56.1 percent. Below the top 150 clients, 255 accounts contribute 1.8 percent in aggregate, so the business depends materially on approximately fifty relationships.
• Margin history. Gross margin declined every year from 66.0 percent in 2021 to 18.6 percent in H1 2026. A sustained reversal has not yet been demonstrated.
• Capacity confirmation. The capacity thesis is derived from cabinet inventory and cost records. Management comments in the draft requested that the capacity context be reconfirmed.
• Paid acquisition. The company has not run paid acquisition at scale. The modelled $1,600 cost is an external benchmark rather than an observed result.
• Small account churn. Monthly logo churn is 10.8 percent, concentrated in accounts averaging $198 of lifetime value. Revenue retention is 103.2 percent per quarter, so the accounts that matter are not leaving, but the churn rate in the long tail should be understood before any acquisition spend is modelled against it.
• Legacy billing. Five institutional accounts representing 14.8 percent of revenue are billed outside the main platform, creating reporting and operational dependency.
• Currency exposure. Colocation is billed in euros while revenue is billed in U.S. dollars. Currency movement can help or hurt margins and the exposure is not hedged.
• Team and role clarity. The final organisation chart, leadership biographies, contractor roles and replacement requirements should be confirmed before normalising earnings.
• Provisional July close. July 2026 cost of revenue omitted a statement import estimated at $10,000 to $15,000. Final results are not yet available in the source materials.
• Asset schedule. A cabinet level asset inventory has been prepared covering all ten cabinets across both sites. Buyers should reconcile it to the depreciation schedule and confirm ownership of the installed hardware.

Diligence focus: customer contracts and concentration; final July close; cabinet capacity and rack unit usage; fixed asset ownership and depreciation; organisation chart and contractor obligations; legacy billing controls; acquisition attribution; foreign exchange exposure; supplier agreements; and the assumptions within the 2027 and 2028 forecast.

The Transaction and Reason for Sale

The company is offered as a 100 percent sale at an asking valuation of $1,950,000. Based on the figures in the existing deal materials, the asking valuation equals approximately 1.04 times 2025 revenue and 10.43 times 2025 adjusted EBITDA. The valuation is approximately 0.93 times the updated 2026 projected revenue. Buyers should form their own view after diligence and earnings normalisation.

• Stake offered: 100%
• Asking valuation: $1,950,000
• Reference revenue: $1,874,254 for 2025
• Projected revenue: $2,100,000 for 2026
• Reference adjusted EBITDA: $186,887 for 2025
• Implied 2025 revenue multiple: approximately 1.04 times
• Implied 2026 projected revenue multiple: approximately 0.93 times
• Implied adjusted EBITDA multiple: approximately 10.43 times
• Financing treatment: owner loans, growth lines and the government loan note require agreed closing treatment

The principal owners operate a significantly larger business that requires their time and attention. Management comments state that the two principal owners provide strategic oversight and funding rather than daily operational work. The sale offers a buyer the opportunity to combine a recurring revenue base, institutional customer relationships, owned servers and an established cross connect estate with the capital and commercial reach to fill the installed footprint.