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TierPoint Buys Cloud and Managed Services Provider

Jerry Kent

Jerry Kent

TierPoint has acquired AlteredScale, a data center provider that offers cloud, colocation and managed services. The deal essentially extends TierPoint’s footprint into Chicago. Financial terms were not disclosed.

AlteredScale has a 107,000 square foot facility, with roughly 25,000 designated as data center space. TierPoint CEO Jerry Kent says the deal will expand the company’s presence in the midwest. This is TierPoint’s 10th acquisition — including the October 2015 buyout of Windstream Hosting Solutions for $575 million in cash — or nearly five times the Windstream’s annual hosting revenues (about $122 million). Overall, TierPoint has about 525,000 square feet of data center space in 19 markets.

Telcos, CSPs and MSPs: Oh My

TierPoint’s M&A deals arrive amid a broader cloud market inflection point. On the one hand, midsize co-location and data center providers seem to be doubling down on their cloud and managed services initiatives. But on the other hand, big telcos seem to be rethinking their overall cloud and managed services portfolios — even pulling back in some cases and retrenching on network management.

Two cases in point: AT&T is transitioning its managed hosted applications to IBM’s cloud business. And CenturyLink has been  trying to sell roughly 60 data centers, though the company plans to remain in the cloud and managed services markets.

Recent MSP, CSP and IT Services Acquisitions

Overall, the M&A market across small and midsize cloud and managed services companies remains strong. Other recent deals include…

Check ChannelE2E’s M&A tracker for ongoing deal information.

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