Private equity, CSPs, Data centers, SI, IT management, MSP

Private Equity Firm GI Partners Acquires Colocation Company LightEdge

Private equity firm GI Partners has acquired LightEdge, a colocation, cloud, and MSP that also has managed security services expertise. Financial terms of the deal were not disclosed

This is technology M&A deal number 574 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

LightEdge and GI Partners: Data Center and MSP Expertise

LightEdge, founded in 1996, has 191 employees listed on LinkedIn. The company operates seven data centers purpose-built for hybrid cloud and colocation services. Key locations include a Des Moines, Iowa, headquarters along with sites in Kansas City; Omaha, Nebraska; Austin, Texas; and Raleigh, North Carolina.

LightEdge previously owned by The Anschutz Corporation, has acquisition experience. The company purchased OnRamp of Austin, Texas, in 2018.

New LightEdge owner GI Partners has expansive experience in the data center and managed services markets. The company's current investment portfolio includes managed wireless network solutions provider Single Digits and Flexential (formerly Peak 10). Previous holdings included colocation MSP ViaWest, cloud infrastructure as a service provider SoftLayer, and data center provider Digital Realty.

GI Partner’s GI Data Infrastructure Fund, which manages over $1.8 billion of capital commitments, is overseeing the deal, the buyer says.

GI Partners Acquires LightEdge: Key Perspectives

Jim Masterson, CEO, LightEdge
Jim Masterson, CEO, LightEdge

In a prepared statement about the deal, LightEdge CEO Jim Masterson said:

"I am very proud of what we accomplished together with our owners, The Anschutz Corporation, over the years. We never took our eye off the vision for this company and Anschutz supported us the entire journey. We got to know the GI Partners organization over the last year, and I believe we found the perfect investment partner to help take our company to the next level.”

Mark Prybutok, managing director, GI Partners, added:

"Over the last several years, LightEdge has emerged as a leading platform for colocation and cloud and managed services, particularly in the Midwest region. The Company has a proven model for delivering excellent service to enterprise customers in an increasingly complex hybrid-cloud world. We look forward to partnering with Jim and the LightEdge team to realize their vision for growth in the business.”

Augie Cruciotti, managing director at The Anschutz Investment Company, concluded:

"The acquisition reflects the tremendous value that LightEdge has built over the past 14 years and it was important for us to find the right investment organization to take LightEdge to the next growth phase of the company. GI Partners is the perfect hand-off and we have no doubt the future remains bright for the entire LightEdge team and its customers.”

Multiple advisors assisted the deal.