Cequel Data Centers Acquires TierPoint

Cequel Data Centers continues to grow through acquisitions. This week the company announced the acquisition of TierPoint, a regional provider of colocation and cloud computing services in the Pacific Northwest.

Cequel Data Centers is a portfolio company of Thompson Street Capital Partners, Charterhouse Group, and Cequel III that was formed to acquire Dallas provider Colo4 in July 2011. Late last year it bought Perimeter Technology, a leading provider of colocation and managed IT services in Oklahoma.

TierPoint operates three facilities in the Spokane, Wash. market area, with more than 30,000 combined square feet of raised floor data center space and almost 4.4 megawatts of total facility power. With its prior acquisitions, Cequel now owns and operates more than 100,000 square feet of data center space.

"The TierPoint team has a strong reputation and influential customer base, and they’ve demonstrated their ability to sell into larger markets, with the majority of their revenue now generated by customers outside the Spokane area," said Paul Estes, President and Chief Executive Officer of Cequel Data Centers. "Situated in one of the safest areas of the United States, with relatively low power costs and high fiber connectivity, the TierPoint acquisition provides us with geographic diversity and fits well with our overall strategy of acquiring data centers in key markets that position us to respond to the growing demand for colocation, managed IT and cloud computing services."

RBC Capital Markets acted as financial advisor to the sellers and was the sole lead arranger and sole bookrunner for the debt financing associated with this acquisition. Goldman Sachs, CapitalSource Bank, US Bank, ING Capital, and CoBank also participated in the credit facility. Financial terms were not disclosed.