Peak 10, backed by private equity firm GI Partners, has purchased data center owner ViaWest for approximately $1.68 billion. The deal comes amid rising interest for data centers and prime real estate used in IT infrastructure services.
ViaWest is an information technology service provider offering colocation, IT consulting, cloud storage and managed service capabilities. The Greenwood Village, Colorado-based target, which assures security and compliance, operates enterprise data centers in Colorado, Utah, Oregon, Nevada, Texas, Minnesota, Arizona and Calgary, Canada. ViaWest was owned by Shaw Communications Inc. (NYSE: SJR) prior to the deal with Peak 10 and GI Partners.
Peak 10 is also an IT infrastructure company that provides cloud and data center services. The buyer, acquired by GI Partners in 2014, will own a majority share of ViaWest as part of the deal. Peak 10 is based in Charlotte, North Carolina. DH Capital served as financial adviser to Peak 10 and GI Partners, while Paul Hastings LLP acted as legal counsel.
GI Partners is a San Francisco-based PE firm with nearly 15 years of experience investing in data centers, carrier hotels and other tech-focused real estate. The PE firm acquired Komo Plaza, a 294,000 square foot data facility and office space, from real estate investment firm Hines Interests LP, for $276 million in January. GI Partners has raised more than $14 billion in capital through private equity and real estate strategies.
Acquisitions for data centers have become increasingly attractive for buyers of all kinds in the middle market. Recent deals include: Verizon Communications Inc. (NYSE: VZ) sold its data centers to Equinix Inc. (Nasdaq: EQIX) to focus on mobile video advertising; Equinix continuing its buying spree by adding Bit-isle Inc.; Fusion Telecommunications International Inc. (Nasdaq: FSNN) bought call center software company Technology for Business Corp.; and TierPoint LLC agreed to purchase Cosentry.