Private equity, Data centers, Mergers and Acquisitions

Stonepeak Acquires Cologix Data Center Business

Grant van Rooyen
Grant van Rooyen

Stonepeak Infrastructure Partners has acquired majority control of Cologix, a network-neutral interconnection and data center company. Cologix executives and additional investors retain stakes in the company. Financial terms were not disclosed.

It sounds like Cologix and Stonepeak spent about six months getting to know each other before announcing the deal. Rumors about Cologix seeking potential investors or buyers have circulated since around December 2016. At the time, Cologix had about $70 million in annual EBITDA, the reports suggested.

Cologix operates 24 data centers across nine markets in the United States and Canada. Cologix's carrier-neutral facilities offer customers access to various networks and cloud operators. The company's 1,600+ customers include network providers, cloud providers, media companies, financial companies and enterprises, Cologix asserts.

The Cologix leadership team remains unchanged. Grant van Rooyen remains CEO. Shareholders beyond Stonepeak continue to include Grant van Rooyen, the van Rooyen Group, company management, Columbia Capital and Greenspring Associates. The parties are expected to "participate in future growth equity investments," the companies said.

Translation: This wasn't a company sale or exit. Instead, think of it more like a venture round to fund growth -- with more potential investments coming.

Stonepeak Infrastructure Partners is a North America-focused private equity firm that invests in such markets as Energy, Power & Renewables, Transportation, Utilities, Water & Communications. The PE firm manages $6.4 billion of capital for its investors.

Data Center Mergers and Acquisitions

Mergers, acquisitions and exits across the data center landscape have accelerated in recent months. Recent example deals include:

More deals could be coming. For instance:

Complete M&A Coverage: Track all VAR, MSP and CSP mergers and acquisitions by visiting the ChannelE2E Milestones section daily. Also, check out ChannelE2E’s Top 100 Mergers & Acquisitions across the IT channel, 2017 edition.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.