TierPoint, LLC, has signed a definitive agreement to acquire Cosentry, a rapidly growing provider of cloud, colocation and managed services based in Omaha, Nebraska.
Cosentry currently operates nine data centers in several Midwest markets, including Omaha, Nebraska; St. Louis, Missouri; Kansas City, Missouri and Kansas; Sioux Falls, South Dakota; and Milwaukee, Wisconsin. The company has been named one of Inc. Magazine's "5000 Fastest Growing Companies" for eight consecutive years. Terms of the acquisition, which is expected to close in March, were not disclosed.
Upon closing, Cosentry will become a subsidiary of TierPoint and operate under the TierPoint brand. At that time, private equity firm TA Associates, which acquired Cosentry in 2011, will become a significant investor in TierPoint, joining RedBird Capital Partners, Cequel III, Ontario Teachers' Pension Plan, the Stephens Group, JZ Advisers and Thompson Street Capital Partners.
"Cosentry is an excellent company with great people and this acquisition gives us a significant, strategic advantage in key Midwest markets, where there is an increasing demand for data center services," said Jerry Kent, Chairman and CEO of TierPoint. "We're also extremely pleased that a leader like TA Associates, with a long and rich history of smart investments, has chosen to become a significant investor in TierPoint. The combination of TierPoint and Cosentry will bring economies of scale, which benefits our customers, and the addition of TA Associates to an already strong investor group brings additional financial firepower."
Brad Hokamp, Chief Executive Officer of Cosentry, said that the acquisition will benefit Cosentry customers. "TierPoint can offer our customers an even more robust portfolio of cloud and managed services than we currently have available," said Hokamp. "TierPoint's expanded data center footprint, which spans 19 markets coast to coast, will also give our customers additional geographic options to meet their growing business needs."
"We are very pleased to be investing in TierPoint," said Harry D. Taylor, a Managing Director at TA Associates. "With their complementary product offerings and service areas, we are confident the addition of Cosentry to TierPoint's portfolio will prove to be an industry powerhouse."
On behalf of the investor group, Gerry Cardinale, Managing Partner and Founder of RedBird Capital Partners, a lead investor, said, "We are extremely pleased with the team's execution of our build-up strategy over the last year, culminating with this most recent acquisition of Cosentry. Under Jerry's leadership, the original TierPoint platform has been transformed through several key acquisitions and continued organic growth across its nationwide facilities base. Today, TierPoint is a leader in delivering innovative colocation, managed and cloud-based data center services to its customer base in regional markets across the country. We are also very happy to welcome TA Associates to the investor group and to continue our strong collaboration with management in executing our investment thesis."
When the acquisition is finalized, TierPoint will operate 38 data centers nationally in 24 markets and serve more than 6,000 customers.