Cequel Data Centers, LLC, the parent company of TierPoint,
LLC, announced today that it has been acquired by an investor group
comprised of management and experienced investors across the
communications infrastructure industry. The investor group includes
Chairman Jerry Kent, RedBird Capital Partners, The Stephens Group,
Jordan/Zalaznick Advisers, Inc., and Thompson Street Capital Partners.
Terms were not disclosed.
TierPoint's Chief Executive Officer, Paul
Estes, and the existing management team will continue to lead the
"Our new financial partners bring a long-term orientation and expertise
in building high-growth communications businesses. With their
involvement and this recapitalization, we are well-positioned to
continue investing in our infrastructure, technologies, and people,"
said Estes. "We plan to acquire additional, strategically sound assets
and continue building TierPoint into an industry-leading company."
"We're thrilled to have an opportunity to partner once again with Jerry,
Paul and the rest of their team to help build TierPoint into a world
class data center platform that lives up to the best-in-class standards
of customer service and tailored product offerings for which they're
known," said Gerry Cardinale, Managing Partner, RedBird Capital
Partners. "Having had the privilege of working closely with Jerry and
his team in building a business in the cable industry, we are looking
forward to bringing our experience and expertise to the data center
business, as it evolves into a increasingly important part of the
communications infrastructure landscape."
"This transaction is a confirmation of our strategy, led by our talented
management partners at TierPoint, to create a leader in data center
services, targeting underserved regional markets," said Jim Cooper,
Managing Partner of Thompson Street Capital Partners. "The
recapitalization is a win-win, providing additional resources to fund
the company's unique growth strategy, while simultaneously generating a
strong return for our investors. We are extremely excited to continue
working with company management and our new partners to support the next
stage of growth for this exceptional company."
"We have been looking for platform opportunities to extend our
investment and knowledge around the data center space, and found a high
level of alignment with the team and investor base at TierPoint," said
Robert Covington, Managing Director of The Stephens Group. "The company
is run by a uniquely talented team and is well positioned to succeed."
Managing nearly 140,000 square feet of raised floor data center space,
TierPoint today offers colocation, managed services, and cloud computing
through six WAN-connected data centers in Dallas, Oklahoma City, Tulsa,
Spokane, Seattle, and Baltimore. TierPoint was founded in July 2010 as
Cequel Data Centers with the acquisition of Colo4. Subsequent
acquisitions included Perimeter Technology (November 2011), TierPoint
(May 2012), Adhost (December 2012) and Baltimore Technology Park (June
2013). The combined company was rebranded as TierPoint in July 2013.
In the current transaction, RBC Capital Markets acted as exclusive
financial advisor to TierPoint. Paul Hastings LLP served as legal
counsel to TierPoint; and Willkie Farr & Gallagher LLP served as legal
counsel to the investor group. In addition, Bryan Cave LLP acted as
legal advisor and KPMG as tax advisor to Thompson Street Capital
RedBird Capital Partners (RedBird) is a New York-based private
equity firm which invests in growth-oriented private companies in
partnership with entrepreneurs who have a proven track record of
success. RedBird seeks to provide transformational capital and hands-on
support to founder-led companies within its domain expertise,
establishing strong alignment with the entrepreneurs and business
founders who are an important part of its investor base.
The Stephens Group is a private, family-owned firm investing its
capital in companies with exceptional management teams and high returns
on invested capital in growing industries. The principals of The
Stephens Group have over 80 years of history in successfully investing
in both minority and control positions across multiple industries. The
Stephens Group, through its affiliates, has large positions in energy
services, gas exploration and production, media, communications,
consumer, manufacturing and other industries.
Jordan/Zalaznick Advisers, Inc. (JZAI) is a private equity firm
based in New York and Chicago. For the past 27 years, JZAI has invested
in over 200 businesses in partnership with management and has helped its
management partners pursue growth opportunities. JZAI serves as the
investment adviser for JZ Capital Partners Limited, a London listed
Thompson Street Capital Partners (www.tscp.com)
is a St. Louis-based private equity firm that invests in service,
distribution and manufacturing businesses via recapitalizations,
management buyouts, corporate divestitures and family businesses in
transition. Founded in 2000, TSCP has managed more than $800 million in
private equity capital and is currently investing its third fund. TSCP
partners with management teams to increase value by accelerating growth,
both organically and via complementary acquisitions.
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