Private equity firm Avista Capital Partners has acquired Dallas-based provider of managed services DataBank from Freeman Group, a private-investment firm, for an undisclosed amount.

DataBank's data center facilities are located in downtown Dallas, in the former Federal Reserve Bank building. The company currently has more than 80 managed-services customers.

DataBank's new owners appointed Timothy Moore, formerly of ViaWest and Dataside, as the company's new CEO. DataBank president Patrick Guadalajara will continue in the role.

Both Guadalajara and Moore said the deal would accelerate the company's expansion.

"I am excited to partner with Avista, a financial sponsor who supports our desire to accelerate DataBank's expansion," Moore said in a statement.

Brendan Scollans, a partner at Avista,, said the acquisition was a way for the investor to capitalize on the trends of IT outsourcing by businesses and rapidly growing Internet traffic.

"DataBank is an ideal platform from which to capitalize on these trends, having proven its ability to deliver rapid growth while serving the most demanding blue chip customers," Scollans said. "We have dedicated additional capital to expand DataBank's footprint and services both organically and through acquisitions."

Avista manages about US$4bn of capital and has invested in more than 20 companies. This is its first investment in the data center or IT services space. According to its website, majority of the firm's investment portfolio consists of players in energy and healthcare industries.