American colocation and managed IT provider TierPoint has reached an agreement to buy Xand, a data center operator with six sites across the US.
The deal will add 143,000 sq ft of white space to TierPoint’s footprint, effectively doubling the size of its facilities and making it a major player on the local market. The acquisition is financed through a combination of existing investors and a new investor, Ontario Teachers' Pension Plan.
"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," commented Paul Estes, TierPoint CEO.
The news could be seen as yet another example of the ongoing consolidation trend in the US data center services space. The financial details of the transaction were not disclosed.
TierPoint was established in 2010 as Cequel Data Centers, by combining several smaller data center providers under a single brand. The venture was financed by Cequel III, an investment and management firm focused on the development of cable, telecommunications and IT businesses.
Headquarters in St Louis, TierPoint currently manages nearly 140,000 sq ft of raised floor space across seven US data centers located in Baltimore, Dallas, Oklahoma City, Philadelphia, Seattle, Spokane and Tulsa. In June, the company went through recapitalization after being sold to a group of American investors which included Cequel III chairman Jerry Kent.
Now, it has announced the intention to purchase New-York-based Xand (merged with DBSi in 2012), which operates data centers in New York, Pennsylvania, Connecticut, and Massachusetts.
The combined company will own 13 facilities comprising almost 300,000 sq ft of white space, serving approximately 3,700 customers.
“We are excited to bring two market leading data center operators together," said Kent. "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."
TierPoint has already made further plans to add another 150,000 sq ft of white space to its portfolio in order to support the long-term demands of its customers.
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