Free Newsletters for the Channel
Register for Your Free Newsletter Now
NaviSite Sells Dallas Colocation Business
December 21, 2010
2 Min Read
By samdizzy
NaviSite, a member of our Talkin’ Cloud Stock Index, has sold its Dallas, Texas, colocation business to Cologix Dallas Inc. for $12.75 million in cash. The move is part of a larger trend in the datacenter industry, where colocation businesses are trading hands faster than poker chips on a Vegas black jack table.
According to a prepared statement, all NaviSite Dallas colocation customers will be transferred to Cologix. Also, Cologix will assume NaviSite’s lease of the Dallas data center where the services are hosted, managed, and supported. The transaction is effective immediately. Net proceeds from the sale will be used to repay debt. NaviSite will remain a customer and bandwidth service provider in the Cologix facility in Dallas.
NaviSite says the sale will strengthen the company’s balance sheet and sharpen NaviSite’s focus on managed cloud services. Translation: NaviSite is reducing its exposure to traditional, basic colocation services.
Meanwhile, the Texas region seems to be packed with hosting providers and cloud providers. Rackspace is based in San Antonio and SoftLayer, which recently merged with The Planet, is based in Dallas.
Let’s Make a Deal
Elsewhere, consolidation in the colocation market is a nationwide trend. A few prime examples:
Last week, Telephone and Data Systems Inc. acquired Team Technologies, a data center and colocation provider, for $47 million. TDS also acquired VISI Inc. in March 2010.
In early December, private equity firm Accelon Capital acquired UnitedLayer, a colocation data center and managed hosting provider in San Francisco.
Also in early December, colocation and managed hosting provider ViaWest acquired SingleEdge, a colocation and managed hosting provider in Salt Lake City, Utah.
In November, fiber-optic specialist Sidera Networks acquired colocation provider Cross Connect Solutions.
In January, Cavalier acquired NET Telcos, a Richmond, Va.-based provider of colocation and managed services. NET Telcos offers server virtualization, data backups, firewalls and e-mail hosting.
For VARs and MSPs, colocation market consolidation means channel partners need to work more aggressively than ever to find hosting partners that have stable, predictable partner programs.
Follow Talkin’ Cloud via RSS, Facebook and Twitter. Sign up for Talkin’ Cloud’s Weekly Newsletter, Webcasts and Resource Center. Read our editorial disclosures here.
You May Also Like
Mar 24 - Mar 27, 2025
Mar 24 - Mar 27, 2025
The Channel Partners Conference & Expo, co-located with MSP Summit, is the gathering place for the technology services community. Agents, VARs, MSPs, integrators and service providers will converge to share ideas and drive discussion on the topics shaping our industry.
REGISTER NOW