Liquid Web CEO to sell company to private equity firm

DELTA TWP. — Liquid Web founder and CEO Matthew Hill will sell his company and step down as CEO as the Chicago-based investment firm Madison Dearborn Partners today announced an undisclosed investment in the professional Web-hosting and cloud services provider.

Hill will be replaced over the summer by Jim Geiger, a "seasoned technology executive and entrepreneur," according to a news release from the company. Hill will remain in an advisory role throughout the transition and is "pursuing other opportunities," Cale Sauter, a Liquid Web spokesman, said today.

The company plans to keep all its current staff and continue to make hires, perhaps at a faster rate than before the investment, Sauter said. The headquarters will remain in Greater Lansing.

Geiger, bringing with him to Liquid Web "a proven management team," also is investing. Details of the sale, including the sale price and how ownership will be split, was not disclosed, but Sauter said Madison Dearborn is the largest investor.

Sauter said Liquid Web has "been growing pretty steadily over the past eight to 10 years" and "we hope to accelerate that growth rate" with the Madison Dearborn investment.

Hill founded the company 18 years ago. It serves more than 30,000 customers in 150 countries and counts Home Depot, the Boy Scouts of America, the United Way, and developer of the "Game of Thrones" online games as clients.

"I'm really proud of everything we've accomplished at Liquid Web since our founding 18 years ago," Hill said in a statement. "Madison Dearborn will be a great partner for this next growth phase. Their technical expertise and commitment to Liquid Web's strategy and culture will provide the essential strategic resources to take us to the next level."

"I am pleased and humbled to join such an impressive company founded by an entrepreneur and supported by employees who share my passion for taking care of customers," Geiger said in a statement.

In 1999, Geiger founded Cbeyond, a hosting services company, and he previously worked with Madison Dearborn in his role as Cbeyond chairman and CEO, the news release said.

Madison Dearborn is a private equity firm founded in 1992 that invests in telecommunications, media, technology, business and government services, financial and health care firms, and more.

Clarification: An earlier version of this story said Hill had been ousted as CEO; he will step down after selling his company.