Tierpoint Closes Xand Acquisition
ST. LOUIS, MO (December 2, 2014) – TierPoint announced today that it has completed its previously announced acquisition of Xand from an affiliate of ABRY Partners. Xand is a leading, privately held provider of colocation, cloud, disaster recovery and managed service with six data centers located in New York, Pennsylvania, Connecticut, and Massachusetts. Terms of the sale were not disclosed.
“We are excited to welcome the Xand employees and customers to the TierPoint family, said Paul Estes, TierPoint CEO. “This acquisition brings together two very similar corporate cultures focused on providing enterprise-grade solutions and excellent local customer service. Geographically, it gives us a nice northeastern presence, enhancing the choices we can offer TierPoint’s current and future customers as well as our legacy Xand customers,” said Estes.
With the closing of the deal, TierPoint now operates 13 highly-redundant, Tier III plus data centers with nearly 300,000 square feet of raised floor. The addition of Xand also positions TierPoint to significantly expand data center capacity in the future by an additional 150,000 square feet of raised floor to support the long-term demands of its customers. The consolidated company will also share a common cloud infrastructure supported by industry-leading partners such as Cisco, NetApp, and Fortinet.
Estes said the process of integrating resources, systems and teams, as well as the rebranding of Xand’s properties is underway and expected to be completed within the next year. “We expect the integration to go very smoothly. At the same time, we are continuing to look for potential acquisitions to add to our platform,” said Estes.
The acquisition is funded through a combination of incremental equity from TierPoint’s existing investors as well as a new investor, Ontario Teachers’ Pension Plan (Teachers’), Canada’s largest single-profession pension plan with more than $140 billion in net assets. Its investment was led by Teachers’ Private Capital, which manages a global private equity portfolio valued at approximately $14 billion. TierPoint’s current investor group includes Cequel III management led by Chairman Jerry Kent, RedBird Capital Partners, The Stephens Group, Jordan/Zalaznick Advisers, Inc., and Thompson Street Capital Partners.
RBC Capital Markets and Credit Suisse will be providing debt financing for the transaction. Paul Hastings acted as legal advisor to TierPoint. DH Capital acted as exclusive financial advisor to ABRY and Xand, while Kirkland & Ellis served as their legal advisor.
TierPoint is a leading national provider of cloud, colocation and managed services designed to help organizations improve business performance and manage risk. With corporate headquarters in St. Louis, Mo., TierPoint operates 13 highly-redundant, Tier III plus data centers in the states of Washington, Texas, Oklahoma, Pennsylvania, Maryland, New York, Massachusetts and Connecticut.