TierPoint doubles its data centre capacity in Xand acquisition
Mon 27 Oct 2014
Stateside IT provider TierPoint has announced that it will acquire Xand, a data centre provider with six sites across the U.S., a purchase that will double the company’s current capacity.
The deal has been reached through an affiliate of ABRY Partners, and brings TierPoint new co-location centres in Pennsylvania, New York, Connecticut and Massachusetts.
TierPoint chairman Jerry Kent said: “This transaction will enhance our management team and solidify our ability to provide pre-eminent customer service, all supported locally by an employee team that is second to none.”
The merged company, expected to finalise the transaction in November, will vaunt 13 highly-redundant Tier III data centres with a combined floor space of almost 300,000 square feet, sharing infrastructure from partners including NetApp, Cisco and Fortinet.
The buy-out is being funded through a mix of incremental equity from TierPoint’s current portfolio and through new player Ontario Teachers’ Pension Plan, which holds $140bn in worldwide assets. Current TierPoint investors include RedBird Capital Partners, Jordan/Zalaznick Advisers Inc, Thompson Street Capital Partners and Cequel III management. Credit Suisse is providing debt financing for the transaction.
The terms of the deal have not been disclosed, but it follows what appears to be a growing trend towards consolidation in the cloud and data centre global business environment.
TierPoint started out in Texas in 2010 as Cequel Data Centers, under investment from management firm Cequel III, and holds its headquarters in St. Louis. Its array of pre-Xand floor-space includes locations in Oklahoma City, Seattle, Tulsa, Spokane, Baltimore and Dallas.