Thompson Street Capital Partners and Charterhouse Group announced on July 1, 2010, that they had acquired Colo4, LLC in partnership with Cequel III. A July 7 trade report described the transaction as Cequel Data Centers’ acquisition of Colo4Dallas. The Dallas colocation operator was reported to run a 68,000-square-foot data center; the purchase price was not disclosed.
Who acquired Colo4Dallas?
The two accounts describe the same transaction from different angles. In its July 1, 2010 announcement, Thompson Street Capital Partners said it and Charterhouse Group acquired Colo4, LLC in partnership with Cequel III. On July 7, Data Center Knowledge reported the deal as Cequel Data Centers’ acquisition of Colo4Dallas, and said the business would operate as Colo4 LLC, a subsidiary of Cequel Data Centers.
Cequel Data Centers was the investment and operating platform identity in the trade report; the company announcement identifies Thompson Street and Charterhouse as the acquisition partners working with Cequel III. The accounts therefore use different labels without necessarily describing different deals.
What did the company acquire?
Colo4 was described at the time as a carrier-neutral colocation provider operating a 68,000-square-foot data center in Dallas. The company announcement cited redundant power supplies and environmental controls as facility features. The 68,000-square-foot figure is building area, not power capacity; the cited reports do not state the site’s electrical capacity.
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These are descriptions made in connection with the 2010 transaction, not an independent assessment of the facility’s condition, customer base, revenue or performance.
Who led Colo4 after the acquisition?
Data Center Knowledge reported that Paul Estes of Cequel III was named Colo4 president and CEO. The report also identified RBC Capital Markets as sole lead arranger for acquisition debt and RBC Daniels as financial adviser to the sellers.
Was the purchase price disclosed?
No. The contemporary report said the deal terms were undisclosed, and the materials summarized here provide no purchase price or detailed debt terms. The reference to acquisition financing does not establish the amount paid or support an estimate of the company’s valuation.
Why did the partners pursue the deal?
The parties presented Colo4 as the start of a platform intended to grow through additional acquisitions. In the July 1 announcement, Jerry Kent, CEO of Cequel III, said, “We look forward to growing Cequel Data Centers through additional acquisitions with these high-quality firms.” Thompson Street Capital Managing Principal Jim Cooper said, “We are excited about partnering with Cequel III and Charterhouse to acquire Colo4. The data center industry should continue to benefit from the explosive growth in demand for broadband Internet services.” These were the investors’ expectations and market view, not independent findings.
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Estes, named Colo4 president and CEO, described the company’s growth outlook this way: “We anticipate great growth opportunities in this business, as more and more companies are looking for the type of unrivaled support that Colo4 offers to maintain its customers’ mission-critical information systems.” This was a company executive’s statement about anticipated demand and service, rather than evidence of later results.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened to the platform afterward?
Thompson Street’s December 3, 2012 announcement listed Dallas-based Colo4 in a data-center platform that also included Perimeter Technologies, TierPoint and AdHost, in connection with AdHost’s acquisition. A June 27, 2013 announcement included Colo4 in the platform after the acquisition of Baltimore Technology Park and described geographic expansion. These releases show how the platform was described at those dates; they do not establish the Dallas facility’s current owner, brand, operator or use.
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