A map of Peak 10's network.
(WEB HOST INDUSTRY REVIEW) — Web hosting provider and data center operator Peak 10 (www.peak10.com) and private equity firm Welsh, Carson, Anderson & Stowe (www.welshcarson.com) announced on Wednesday it has closed a transaction in which Welsh Carson has become the majority shareholder of Peak 10.
First announced last month, majority owner and private equity firm Seaport Capital, and private equity fund McCarthy Capital sold their shares to Welsh Carson.
As part of the acquisition, Peak 10 has closed a new credit facility for $155 million.
The loan will be used to accelerate the company’s growth plans in managed services and high-growth markets.
RBC Capital Markets and General Electric Capital were the joint lead arrangers and joint book runners for the bank syndicate.
Royal Bank of Canada acted as the administrative agent and documentation agent for the lenders, while ING Capital was the syndication agent.
Peak 10′s existing management team, led by co-founder, president and CEO David Jones will continue to operate the business.
“This is a tremendous milestone for our management team and entire company,” says Brian Noonan, executive vice president and chief financial officer. “We have exercised prudence in forging a path of consistent growth since founding the company, which has positioned us well for this opportunity. With the support of Welsh Carson and RBC, we look forward to furthering the expansion of our facilities, our team, and our service portfolio.”
Two members of the Welsh Carson team, John Clark and Darren Battistoni, will now serve on Peak 10′s board of directors, with Clark serving as chairman.
The company will continue to expand on its growth through building additional data centers in its existing markets, adding greenfield markets, making strategic acquisitions and expanding its service portfolio to meet increasing customer demand.
Peak 10 provides a range of services including virtualization, managed hosting and cloud-based services.
The company owns and operates data centers in ten key markets that include Cincinnati, Atlanta, Raleigh and Charlotte, North Carolina, Tampa, Jacksonville and Fort Lauderdale, Nashville, Louisville, and Richmond, Virginia.
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