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TierPoint LLC's pending acquisition of Cosentry Inc. further extends the former company's strategy of purchasing data center and managed services companies in second-tier markets.
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The acquisition, announced Wednesday and expected to close in March, would bring together two companies with similar profiles. TierPoint, based in St. Louis, Mo., offers cloud, colocation and managed services. Cosentry, based in Omaha, Neb., offers a similar mix of services.
"We are two companies with very similar strategies," said Brad Hokamp, CEO of Cosentry.
Brad HokampCEO, Cosentry
Hokamp said Cosentry will fill a gap in TierPoint's geographic footprint: the Midwest. Cosentry's reach in that market includes data centers in Omaha, Milwaukee, Lenexa, Kan., Kansas City, Mo., St. Louis, and Sioux Falls, S.D. Overall, Cosentry's nine data centers will boost TierPoint's footprint from 29 data centers in 19 markets to 38 data centers in 24 markets, according to Hokamp.
The Cosentry acquisition is on track with TierPoint's strategy in recent years of purchasing companies in Tier 2 markets. In 2014, for example, TierPoint acquired Xand, which provided data centers in Greater Hartford Conn.; MetroWest Boston; Pennsylvania's Lehigh Valley region; Valley Forge, Pa. and Westchester County, N.Y. And in 2015, TierPoint acquired CxP Data Centers, based in Jacksonville, Fla. At the time, Jerry Kent, TierPoint's chairman and CEO, said in a prepared statement that the Florida deal expands "upon our growth strategy in Tier 2 markets."
The addition of Cosentry would grow TierPoint's market reach. Cosentry stands to benefit as well. Cosentry's customers would gain access to data centers in more cities and greater depth of capability. Hokamp said TierPoint provides more extensive cloud offerings, managed services capabilities around database management and middleware, and a broader security services portfolio.
Cosentry will operate as a TierPoint subsidiary and adopt the company's branding once the transaction closes.
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