Thompson Street Portfolio Company Tierpoint Acquires Windstream Communications Data Centers
ST. LOUIS (December 18, 2015) – TierPoint, LLC (TierPoint), a Thompson Street Capital Partners (TSCP) portfolio company, today announced the acquisition of Windstream Communications’ data center business in an all-cash transaction valued at $575 million. The Little Rock, Arkansas-based company (www.windstreambusiness.com) is a leading provider of enterprise-class data, voice, network and cloud services.
Windstream will establish an ongoing reciprocal strategic partnership with TierPoint, allowing both companies to sell their respective products and services to each other’s prospective customers through referrals. This structure will allow Windstream to focus capital on its core telecom offerings while continuing to offer traditional data center services to enterprise customers across a broader data center footprint.
Originally announced on October 19, 2015, this acquisition will add 14 facilities in five new markets, including Raleigh and Charlotte, North Carolina; Chicago; Little Rock, Arkansas and Nashville, Tennessee. The deal adds approximately 179,000 square feet of data center space to TierPoint’s portfolio.
According to Bob Dunn, Managing Director of Thompson Street, the acquisition of the Windstream data centers is the eighth for TierPoint, LLC. “With the closing of this deal TierPoint now operates 28 highly redundant, Tier III-plus data centers in 19 U.S. markets with a total of nearly 500,000 square feet of floor space,” Dunn said. “This represents a significant expansion of its national data center footprint and a greatly enhanced capability to service TierPoint customers in a far larger geographical area.”
“We are pleased to welcome the former Windstream Hosted Solutions employees and customers to the TierPoint family,” said Jerry Kent, TierPoint’s chairman and CEO. “This is an exciting step in the growth of TierPoint and significantly enhances the portfolio of services we can offer our customers.”
Tony Thomas, Windstream President and CEO said, “This transaction enables Windstream to focus capital on our core telecom offerings and pay down debt, while providing expanded data center services to our enterprise customers. We expect the divested data center business to continue its growth under our new partnership.”