Atomic Data Takes Over Bankrupt Competitor’s Clients

After the two IT providers went head-to-head in court, Atomic Data said it has acquired assets from the bankruptcy estate of Atomic Playpen.

Atomic Data said Thursday that it has purchased the Web-hosting platform used by former corporate clients of Atomic Playpen, a Twin Cities competitor that recently closed its doors.

Minneapolis-based Atomic Data has more than 500 clients globally, and the recent transaction resulted in 17 of Atomic Playpen’s “corporate hosting clients” transitioning to Atomic Data. An Atomic Data spokesman declined to disclose financial details of the acquisition.

Atomic Data said that its acquisition came on the heels of a legal dispute between the two IT providers over the name “Atomic.” Atomic Data said the litigation was resolved in July when it secured a “favorable settlement.”

Later that month, The Minneapolis Egotist reported that Atomic Playpen had shut down completely and laid off nearly its entire staff in a single day—without providing a reason.

Upon hearing of the closure, Atomic Data said its CEO, Jim Wolford, expressed regret that Atomic Playpen’s clients would now “be left without a solution for hosting needs.”

“As a digital agency, Atomic Playpen and its clients relied heavily on IT infrastructure to host, develop, and support their work—the kind of infrastructure that Atomic Data has specialized in since 2001,” said Atomic Data. “Being perfectly suited to keep their clients’ critical infrastructure up and running, Atomic Data took an active role in the bankruptcy process and bought all hosting related assets from the bankruptcy estate of Atomic Playpen.”

Atomic Data offers data storage through private cloud solutions, private enterprise IT networking, and 24/7 technical desk support. In addition to its Minneapolis headquarters and a data center in Edina, Atomic Data has data centers across the globe in Arizona, Georgia, Toronto, Hong Kong, and Madrid, Spain.

In March, Atomic Data acquired fellow Twin Cities IT company DanburyIT for an undisclosed sum.

At the time of that acquisition, Atomic Data said it was projecting 2013 revenue of $15 million, up from $12 million the previous year. With the addition of DanburyIT, whose 2012 revenue totaled $1 million, Atomic Data upgraded its expectations to between $16 million and $18 million for the year.

Atomic Data also said at the time that it was growing its work force: Its staff increased from 47 in 2011 to 80 in April, including the five employees gained through the DanburyIT acquisition.

The Atomic Data spokesman declined to say how the 17 clients gained by acquiring Atomic Data’s assets would affect the company’s annual revenue or employee base.

As of Thursday afternoon, the phone number listed for Atomic Playpen was disconnected.