TierPoint has reached an agreement with an affiliate of ABRY Partners to acquire colocation provider Xand, adding six data centers located in New York, Pennsylvania, Connecticut and Massachusetts.
The combined company will operate 13 Tier III-plus data centers in 10 markets, with almost 300,000 square feet of raised floor, serving approximately 3,700 customers. The consolidated company will also share a common cloud infrastructure supported by Cisco, NetApp and Fortinet.
And, the acquisition gives TierPoint the option to addd additional 150,000 square feet of raised floor to support the long-term demands of its customers.
“We are very excited about the Xand acquisition,” said Paul Estes, TierPoint CEO. “Our investors, including our new investor, Teachers’, have shown confidence in and a deep commitment to TierPoint. By investing in our growth strategy, they have helped position us for success now and for the foreseeable future.”
The acquisition is being funded through a combination of incremental equity from TierPoint’s existing investors as well as a new investor, Ontario Teachers’ Pension Plan (Teachers’), Canada’s largest single-profession pension plan with more than $140 billion in net assets. TierPoint’s current investor group includes Cequel III, RedBird Capital Partners, the Stephens Group, Jordan/Zalaznick Advisers, Inc. and Thompson Street Capital Partners.
“Cequel III is making a significant investment in TierPoint in support of this transaction and we are excited to bring two market leading data center operators together,” said Jerry Kent, chairman of TierPoint. “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 transaction is expected to be finalized in November. Terms of the sale were not disclosed.
