Cologix Inc., a data center company owned by Columbia Capital and Greenspring Associates, has retained investment banks to explore a sale of the company, according to The Wall Street Journal. Still, the suggested valuation for the deal doesn't quite add up to ChannelE2E.
Cologix could attract bids of around $1.25 billion, the report suggested. With roughly $70 million in annual EBITDA, that means the co-location specialist would be valued at roughly 17.8 times EBITDA. Assuming my math is correct, that sounds like a very lofty "ask" price...
Cologix has 24 data centers across nine North American locations. The data centers offer network neutral colocation and interconnection services at the Internet's edge, the company asserts.
Data Centers: Who's Buying, Who's Selling?
This is a tricky time to be selling data centers. No doubt, there's plenty of M&A activity. But Verizon has been trying to sell dozens of data centers for most of 2016, and the company has essentially vowed to wrap up an asset sale before the close of this year. Also, CenturyLink recently sold dozens of data centers to multiple private equity firms.
Buyers in the data center market have included Equinix and Digital Realty Trust, among others. Equinix has been a rumored buyer for the Verizon data center assets, by the way.
Curiously, The Wall Street Journal didn't say whether Cologix was available for comment about the potential asset sale. That omission may indicate that the data center provider and/or its current owners are the source of the leak. ChannelE2E has reached out to Cologix for comment and will update this article if we hear anything.
To track all mergers, acquisitions and company sales involving VARs, MSPs and CSPs, visit the ChannelE2E Milestones section.
