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TMCNet:  Management, Investor Group Announce Acquisition of TierPoint

[June 10, 2014]

Management, Investor Group Announce Acquisition of TierPoint

ST. LOUIS --(Business Wire)--

Cequel Data Centers, LLC, the parent company of TierPoint, LLC, announced today that it has been acquired by an investor group comprised of management and experienced investors across the communications infrastructure industry. The investor group includes Chairman Jerry Kent, RedBird Capital Partners, The Stephens Group, Jordan/Zalaznick Advisers, Inc., and Thompson Street Capital Partners. Terms were not disclosed.

TierPoint's Chief Executive Officer, Paul Estes, and the existing management team will continue to lead the business.

"Our new financial partners bring a long-term orientation and expertise in building high-growth communications businesses. With their involvement and this recapitalization, we are well-positioned to continue investing in our infrastructure, technologies, and people," said Estes. "We plan to acquire additional, strategically sound assets and continue building TierPoint into an industry-leading company."

"We're thrilled to have an opportunity to partner once again with Jerry, Paul and the rest of their team to help build TierPoint into a world class data center platform that lives up to the best-in-class standards of customer service and tailored product offerings for which they're known," said Gerry Cardinale, Managing Partner, RedBird Capital Partners. "Having had the privilege of working closely with Jerry and his team in building a business in the cable industry, we are looking forward to bringing our experience and expertise to the data center business, as it evolves into a increasingly important part of the communications infrastructure landscape."


"This transaction is a confirmation of our strategy, led by our talented management partners at TierPoint, to create a leader in data center services, targeting underserved regional markets," said Jim Cooper, Managing Partner of Thompson Street Capital Partners. "The recapitalization is a win-win, providing additional resources to fund the company's unique growth strategy, while simultaneously generating a strong return for our investors. We are extremely excited to continue working with company management and our new partners to support the next stage of growth for this exceptional company."

"We have been looking for platform opportunities to extend our investment and knowledge around the data center space, and found a high level of alignment with the team and investor base at TierPoint," said Robert Covington, Managing Director of The Stephens Group. "The company is run by a uniquely talented team and is well positioned to succeed."

Managing nearly 140,000 square feet of raised floor data center space, TierPoint today offers colocation, managed services, and cloud computing through six WAN-connected data centers in Dallas, Oklahoma City, Tulsa, Spokane, Seattle, and Baltimore. TierPoint was founded in July 2010 as Cequel Data Centers with the acquisition of Colo4. Subsequent acquisitions included Perimeter Technology (News - Alert) (November 2011), TierPoint (May 2012), Adhost (December 2012) and Baltimore Technology Park (June 2013). The combined company was rebranded as TierPoint in July 2013.

In the current transaction, RBC Capital Markets acted as exclusive financial advisor to TierPoint. Paul Hastings (News - Alert) LLP served as legal counsel to TierPoint; and Willkie Farr & Gallagher LLP served as legal counsel to the investor group. In addition, Bryan Cave LLP acted as legal advisor and KPMG as tax advisor to Thompson Street Capital Partners.

RedBird Capital Partners (RedBird) is a New York-based private equity firm which invests in growth-oriented private companies in partnership with entrepreneurs who have a proven track record of success. RedBird seeks to provide transformational capital and hands-on support to founder-led companies within its domain expertise, establishing strong alignment with the entrepreneurs and business founders who are an important part of its investor base.

The Stephens Group is a private, family-owned firm investing its capital in companies with exceptional management teams and high returns on invested capital in growing industries. The principals of The Stephens Group have over 80 years of history in successfully investing in both minority and control positions across multiple industries. The Stephens Group, through its affiliates, has large positions in energy services, gas exploration and production, media, communications, consumer, manufacturing and other industries.

Jordan/Zalaznick Advisers, Inc. (JZAI) is a private equity firm based in New York and Chicago. For the past 27 years, JZAI has invested in over 200 businesses in partnership with management and has helped its management partners pursue growth opportunities. JZAI serves as the investment adviser for JZ Capital Partners Limited, a London listed closed-ended fund.

Thompson Street Capital Partners (www.tscp.com) is a St. Louis-based private equity firm that invests in service, distribution and manufacturing businesses via recapitalizations, management buyouts, corporate divestitures and family businesses in transition. Founded in 2000, TSCP has managed more than $800 million in private equity capital and is currently investing its third fund. TSCP partners with management teams to increase value by accelerating growth, both organically and via complementary acquisitions.


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