TierPoint Buys Cloud and Managed Services Provider
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…
- Midwest M&A: Fusion acquires Fidelity Voice and Data
- MSPs and CSPs going vertical: Evolve IP buys A.P.T. Consulting
- Office equipment converges with MSP: BCS acquires StarPoint
- Oracle MSP and cloud expertise: Emtec acquired summit technology
- Cloud data centers: Immedion acquired Appica
- New England IT services: Internet & Telephone acquired Jenaly
- Hybrid cloud: Presidio acquired Sequoia Worldwide
- Multiple Microsoft Dynamics VARs and IT consulting firms have been acquired in 2015.
- Private equity firms have been buying up IT service providers and VARs.
- And emerging cloud service providers have acquired MSPs for regional and technical reach.
Check ChannelE2E’s M&A tracker for ongoing deal information.