(WEB HOST INDUSTRY REVIEW) — Web hosting provider and data center operator Peak 10 (www.peak10.com) announced on Wednesday that private equity firm Welsh, Carson, Anderson & Stowe (www.welshcarson.com) and Peak 10′s executive management will acquire a majority shareholder interest in Peak 10.
The transaction, whose details were not disclosed, is expected to close in early October.
Majority owner and New York-based private equity firm Seaport Capital, and Omaha, Nebraska-based private equity fund McCarthy Capital, are both selling their shares.
Peak 10′s existing management team, led by co-founder, president and CEO David Jones will continue to operate the business.
“Our partnership with Welsh Carson enables Peak 10 to continue increasing the scale of our business to meet the high demand for data center infrastructure and related managed services,” says Jones. “Our strategic focus remains intact but our resources now position us to more rapidly extend our geographic footprint, strengthen our team and further accelerate our managed services and cloud offerings.”
Founded in 2000, Peak 10 has consistently seen growth and expansion in the markets of Jacksonville, Charlotte, Tampa, and Raleigh, as well as through acquisitions of established data center companies in Louisville, Nashville, Richmond, and Fort Lauderdale.
In 2007 and early 2008, Peak 10 opened data centers in Atlanta and Cincinnati, respectively.
Over the last two years the company has completed construction of additional facilities in five of its markets to meet customer growth and demand.
For the transaction, Signal Hill Capital Group acted as exclusive financial adviser to Peak 10.
Womble Carlyle Sandridge & Rice is serving as legal counsel to Peak 10, while Kirkland & Ellisis serving as legal counsel to Welsh, Carson, Anderson & Stowe.
