Black Box boosted by $10M contract
Cecil Township-based Black Box Corp., which has been struggling financially, is getting a major boost from a $10 million contract it was awarded for a data center being built in Ohio. And its possible partner is huge.
It could be Facebook.
Black Box, a leading global technology solutions provider located in Lawrence, announced in a news release it is working with “the most well-known social media company in the world.” The firm said “an almost million square-foot data center” is being built and its contract calls for work on digital infrastructure, including 100 miles of fiber-optic cable.
The company said the $10 million contract “promises to be only the tip of the iceberg” in a five- to 10-year relationship with the social media firm. Black Box said the partnership could eventually result in the company gaining “$300 million or more.” That, the firm added, would be the largest deal in its 42-year history.
Joel Trammell, president and chief executive officer, could not be reached Monday for comment. He said in a news release Friday: “This strategic partnership has the potential to be one of the largest in Black Box history. We look forward to a successful project delivery for this first U.S. data center, and are excited to continue and expand our journey together with our partner.”
Trammell said in a published report the center would be in Ohio but would not divulge the company. Facebook is building a huge, $750 million data center in New Albany, Ohio, in the center of the state. Black Box’s website lists several job openings in New Albany.
That data center is projected to begin operations in 2019.
Black Box outlined its financial concerns in a filing with the Securities and Exchange Commission June 29. The company said it had about $24 million in cash and $155.7 million in borrowings outstanding, “which raises a substantial doubt about our ability to continue as a concern beyond” December 2018.