Cologix, a Denver-based data center provider, has agreed to acquire New Jersey competitor Net Access, gaining its first three data centers in the Garden State and more than 700 new customers.
The deal is the latest example of consolidation in the data center provider industry, which has been happening at a steady pace. Also this week, data center provider TierPoint announced it had agreed to buy the data center business of the telco Windstream.
Terms of the Cologix-Net Access transaction were not disclosed. Net Access is owned by a private equity firm called Seaport Capital.
Like TierPoint, Cologix has been growing primarily through acquisitions of smaller players with data centers outside of the primary markets. The company raised $255 million in private equity to fund expansion earlier this year.
Cologix’s Acquisition History
This is Cologix’s tenth acquisition, bringing its portfolio to 24 data centers in nine markets:
Northern New Jersey
Each of the three Net Access facilities – two in Parsippany and one in Cedar Knolls – is about 30 miles away from New York City. They are interconnected with a dark fiber network that also connects them to major carrier hotels in the region.Total gross square footage of the three facilities is 200,000 square feet.
In an apparent nod to data center outages caused by flooding in Manhattan when Hurricane Sandy ravaged the US Northeast in 2012, Cologix stressed in its announcement the fact that Net Access data centers were 250 feet above sea level.
“The acquisition will enable Cologix to address the vibrant New Jersey market and provide a compelling alternative to colocation options in New York City,” Cologix said in a statement.