Stonepeak Infrastructure Partners has acquired majority control of Cologix, a network-neutral interconnection and data center company. Cologix executives and additional investors retain stakes in the company. Financial terms were not disclosed.
It sounds like Cologix and Stonepeak spent about six months getting to know each other before announcing the deal. Rumors about Cologix seeking potential investors or buyers have circulated since around December 2016. At the time, Cologix had about $70 million in annual EBITDA, the reports suggested.
Cologix operates 24 data centers across nine markets in the United States and Canada. Cologix's carrier-neutral facilities offer customers access to various networks and cloud operators. The company's 1,600+ customers include network providers, cloud providers, media companies, financial companies and enterprises, Cologix asserts.
The Cologix leadership team remains unchanged. Grant van Rooyen remains CEO. Shareholders beyond Stonepeak continue to include Grant van Rooyen, the van Rooyen Group, company management, Columbia Capital and Greenspring Associates. The parties are expected to "participate in future growth equity investments," the companies said.
Translation: This wasn't a company sale or exit. Instead, think of it more like a venture round to fund growth -- with more potential investments coming.
Stonepeak Infrastructure Partners is a North America-focused private equity firm that invests in such markets as Energy, Power & Renewables, Transportation, Utilities, Water & Communications. The PE firm manages $6.4 billion of capital for its investors.
Data Center Mergers and Acquisitions
Mergers, acquisitions and exits across the data center landscape have accelerated in recent months. Recent example deals include:
- QTS Realty Trust (QTS) acquired a Dallas, Texas-based data center in January 2017.
- Peak 10 acquired a Kentucky data center in January 2017.
- United Internet acquired Strato AG in December 2016.
- Equinix acquired Verizon’s cloud data centers for $3.6 billion in December 2016.
- CenturyLink sold its data centers for $2.15 billion to an investment group in November 2016.
More deals could be coming. For instance:
- Digital Bridge Holdings may acquire Vantage Data Centers Management from Silver Lake Partners for more than $1 billion, according to Reuters.
- IBM may buy Lloyds Banking Group’s data centers, according to reports earlier this month.
Complete M&A Coverage: Track all VAR, MSP and CSP mergers and acquisitions by visiting the ChannelE2E Milestones section daily. Also, check out ChannelE2E’s Top 100 Mergers & Acquisitions across the IT channel, 2017 edition.
