Data Center Finance: TierPoint Acquires Xand

TierPoint announced in late October that it had reached an agreement to acquire Xand, a privately held provider of data center services that is an affiliate of ABRY Partners.

While the exact terms of the deal have not been made public, the acquisition is being funded through a combination of incremental equity from existing TierPoint investors and an investment from the Ontario Teachers Pension Plan, a new backer with more than $140 billion in net assets. Both parties expect the acquisition to be finalized in November 2014.

Xand operates six data centers on the East Coast, with locations in New York, Pennsylvania, Connecticut and Massachusetts. The new acquisition will bring TierPoint’s data center portfolio to a total of 13 highly-redundant facilities of Tier III or higher certifications. The data centers are located in 10 different markets and offer a combined 300,000 square feet to serve nearly 3,700 customers.

The deal also enables TierPoint to expand its data center capacity significantly in the near future, adding an extra 150,000 square feet of raised floor space to support long-term customer demands.

The cloud infrastructures of both TierPoint and Xand are supported by a combination of systems from Cisco, NetApp and Fortinet, making the acquisition even more favorable.